All Forum Posts by: Nik Corbaxhi

@Laurinda Reynolds, at this point I am assuming they will start failing to make payment, if they have not done so. Check the contract and the moment they are late, serve them the Notice to Quit and get ready for the eviction process. 

 Thanks Aaron, definitely missed that. If that is the case, the numbers would be a concern, just based on the simple 1% rule. 

@Michael Phillips, do you have a positive cash flow on your $1mil investment? Looking at the numbers, 6k rent on $1 mil, not sure if it is, but if it does, then buying something for 600k which you can rent for the same seems like a no brainier to me. 

What I dont like is that your neighbor is selling the property for 60% of what you bought at, but collecting the same rent. did you overpay on your first investment or is the neighbor underselling? 400k difference would raise questions. 

whatever @Ralph Poirier said X 2. I rent to students in Bridgeport CT and pretty much do the same. renting rooms individually is way to risky and will bring a lot of headaches your way for the same reasons you mentioned. Do yourself a favor and rent the house as 1 unit, let the kids pick their own roommates. 

@Mohammed Aldorri, this is a classical scenario that happens all the time. I bet that the owner never paid the water bill and they accumulated to a few thousand dollars. Usually, the landlord should pay the bill and provide you with receipt of payment, so you can reimburse him. That is what I do in my properties and I specifically state that quarterly Landlord will provide Tenant with water charges. Check the contract and get on this. If the contract says you have to pay the water, then you would have to pay the water. Ask for details as if there are late fees, those should go to the landlord and not to you, especially if the water is on his name. He neglected to pay the water and only brought it down to you once he got slammed with a few thousand dollar bill. 

@Thomas O., I think there is something bothering you about sharing this with the HOA and I don't think it is the term of the lease. you mention "several tenants in a decent size home". what is several here? are there any restrictions on how many occupants should be in your condo? if not, then you have nothing to worry about.

My HOA also requires a copy of the lease as well. While you can black out the rent amount (which doesn't even matter anyways), the HOA will have to know who the tenant is, especially if the tenant has to sign a form to state that they agree with all of the HOA bylaws an regulations, and what cars they drive, license plates, pool pass...etc. I don't think there is harm on sharing the actual agreement with them, as long as there is not anything in there that contradicts the HOA bylaws.

Good luck. 

@Brandon Malone, you can go either way on this one. If the potential renter backed out and during the 10 days or so that the house was off market, your friend can argue that she also missed out on other tenants because she put the property off market, then yes she could keep the money. She would have to show proof of this, either emails or calls or texts where she was telling other people the house was not on the market. 

Back to reality, the tenant did not back out, or did for a few hours. Your friend cannot make a point over opportunity loss as this happened overnight anyways. 

It is clear that these tenants are not the ones that your friend or anyone desires. Just refund the $500. Even if you keep it and end up in small claims court, between taking off from work and the stress that comes with it, it is not worth it. 

I would also respond to the smarta** of a lawyer that reached out to your friend and let him/her know that your friend got legal advice and does not have to return the money if she choose to go to small claim courts, and that the lawyer cannot even represent the tenant in small claim courts. I would also tell the lawyer that you will report them for even reaching out (not sure what the threat is and how the letter was written), but tell him that you will report him to the local court and law enforcement. I am sure that will scare him/her sh**less. 

@Jourdain Francine, congrats on your purchase! $350 seems to be a lot to leave on the table for just being nice tenants. Is there any way you can ask the seller for any history? At least you can attempt to get some info as far as how long they have been there, etc. 

If similar properties are going for $1500-$1900, I would definitely have a conversation with them. I believe it is all on how you approach the situation. I would have an open and honest conversation about the facts. Be prepared to provide them with some examples of comps, only if they ask for how you came up with $1500/month. Also, not sure if they are on a contract or not, but I would make the changes starting at the end of the current contract. If on a month to month, try to give them a break and tell them that you will keep rent the same until March or April. Trying to get people to move in during the winter months is a bit harder. Hopefully, they will see the value and you will be able to persuade them to stay. 

Another tactic is to say you will raise the rent to 1600 with the heat included. After their expected dissatisfaction, tell them they are great tenants and that you are willing to slash the price to $1500 for them. 

Looking at the facts though, you can't loose much. Work with the timing and if they decide they will move on, while you give them notice to vacate post it and start showing it to other new tenants. 

Try Cozy.co. it is very straight forward. 

@Kristofer Kohlstedt, I would also question the ability of who the contractors are? is this a large company or just some 1 man plumber? the reason I say this is because you want some warranty behind the work that will be performed, as you don't have much of an option. as @Jon Reed mentioned, you cant just sell the house and not disclose it. A simple inspection will pick that up. Also, unless you sell the property "AS-IS" (will raise some eye brows on its own", you wont be able to sell without fixing it, or lower the price significantly because of it.

I would recommend to get a reputable company out there and get another opinion. There has to be an easier way of fixing it rather than go throw the driveway. Keep asking to see if you get the same recommendation, then you can figure out pricing as well as what the best course of action is. Whoever you chose, make sure there is some warranty that comes with it. You don't want the problem to re-appear because someone did not remove the section of the pipe that needed to be removed. 

Last but not least, ask for financing. 7-12k is a lot of money as one payment. most of these companies will give you payment options. it might not hurt you in the end if you end up in a $100-$150 monthly payment for a few years. Increase rent steadily over the next couple of years to recover some of your costs (you usually blame this to the taxes going up). No one can argue with uncle Sam's cut! :)

Good luck!