All Forum Posts by: Paul De Luca

@Andrew Katz

In this situation, you can either (a) continue dealing with the pain of having your tenants that pay late and violate your lease terms or (b) deal with the pain of turnover but the prospect of getting better tenants. 

The first option will give you continuous headaches with a certain likelihood that the behavior may get worse (not paying at all and more damage). The second option at least gives you a chance at a fresh start with a new tenant.

Of course, a new tenant is an unknown and there's no guarantee they will be better. Were you thorough with your tenant screening for your current tenants?

If you hate the process of placing tenants, it may be worth it to hire a property manager to handle tenant placement for you.

I think finding a new tenant is a better long term strategy if you're confident you can find a higher quality tenant that will cause you fewer headaches. In the short term, it will be more painful though.

Personally, I'm not a fan of enabling bad tenant behavior and in life you get what you tolerate. They aren't going to magically improve and start abiding by the lease terms but I think there is definitely a possibility that the situation gets worse.

Here's a list of local meet ups.

@Olivia Blake

Ask the tenant what repairs they are referring to, and depending on what they are, make the repairs as needed. Is it true Avail would be providing you access to their credit history? 

It also sounds like they are unsure about renewing the lease so I would ask them when they will make a decision on if they want to renew the lease or not. When does their lease expire? I think you should also confirm to them what lease renewal terms you are offering them so they can make an informed decision.

If you make the repairs, you'll create some goodwill with the tenant and they will be more likely to renew. Stick to the facts and ask clarifying questions to understand their concerns to resolve this.

Quote from @Omar Santander:

Dear all,

Hope you are having a great day. My name is Omar Santander a new investor that is interested in residential units (single-family and multifamily, with a particular emphasis on multiunit), house hacking, long-distance investing, BRRRR and mid/long-term rentals. Hope I can connect with experienced and new investors, lenders, real state agents and property managers.

Thank you.

Welcome! I recommend honing in on one specific strategy to get started and then go from there. Personally, I'm a big fan of house hacking and usually recommend that as the way to get started if possible. It really depends on your goals, budget, target areas, etc though.

@Adam Newman

Why not put 5% down or go with the FHA loan if the numbers still make sense? That way, you keep more in reserves and have more to put towards your next house hack. Sure, mortgage insurance eats into your cash flow a little bit if you're putting less than 20% down but in the scheme of things it's really not that much.

Also, you won't have 20% equity in your property in a year assuming you put 10% down unless you are forcing appreciation or you somehow get some high market appreciation.

@Michael Labudzki

I can connect you with a commercial lender to discuss financing if that would be helpful. 

@Michael Labudzki

What category of commercial real estate are you considering? 5 units+ could be a good place to get started.

Quote from @Romeo Nava:

Hi fellow investors!

I am looking to add a 2nd investment property to my portfolio but I have no cash to do so. I have spoken to lenders about traditional financing and also DSCR loans. I have heard about doing deals with little to no cash down but I'm skeptical about whether creative financing options are truly viable. I would appreciate any tips or experience with any creative financing options!

Find a partner who has money to invest with and find & manage the deal (sweat equity). Maybe a family member or close friend?

Truly no money down deals are very rare. DSCR loans generally require 20-25% down. I hope you're working on saving up some of your own cash since you will need that to buy more property.

@Mario Morales

How are you defining a "traditional agent"? Also, which choice is better for you highly depends on what your real estate goals are and the experience level & skillset of the specific agent.

Traditional agent and Redfin Agent could essentially be the same thing in many cases.

@Delroy Watson

I recommend connecting with @Jonathan Klemm to get an estimate.