All Forum Posts by: Pete T.

The first thing you want to do is become completely familiar w/ your state's laws.  You will likely need to honor the tenants leases, however, there are ways to remove tenants, sign new leases etc, depending on your goals and state laws.

it all depends on what your goals are- interest rate, low down, speed, flexibility, etc. 

I think anyone can be rehabilitated, its just a matter of if they have the desire strong enough to do so.  Although I believe in second chances, I would at a minimum not renew the lease if I even decided to purchase the property for a number of reasons:

-You already know what they tenant is capable of (this is why we screen)

-Obviously the present tenants don't know or care but future tenants may, especially if you are doing renovations and increasing rents

Other factors include reputation and questions about what else was lack by the previous management (what other warm bodies fill the units).

doesn't that require you to be an accredited investor?

what do you have put together and what value do you add?

I think a lot of people gave good replies.  I think just being flexible gives you a huge leg up and the large companies that are very resistant to any "standard contract" modifications.  Find what the owners value and show them how you can deliver it.  My personnel experience w/ PMs has been disappointment about screening, speed, costs, vacancy, etc. so I am not a big fan.  I don't see the cost being worth someone advertising and doing the bare minimum.

there is no one size fits all for what an ac unit is able to do.  I have worked on units that have a greater than 30 degree delta between supply and return.  There are several great responses above, but the one thing you should do right away is to resolve this for the tenant.

you may need a more powerful unit, better insulation, attic fan, windows, etc.  Is this a new problem?  Some builders do not install the proper unit from day 1

vacancy and maintenance so far mean nothing.  Repairs sometimes happen all at once and it's amazing how much cash flow it takes to cover a roof, hvac, etc.  Sometimes there are additional hidden costs you find when updating or repairing as well.  Conservative is key, especially if you are highly leveraged.

@Kyle Scholnick

- obviously some of the profit will be removed in using a TK- its a business.  You cant say you don't have time to do the leg work, but expect the same type of returns as if you did it yourself.  I would also say that a lot of proformas are not going to be conservative either when they are selling how "great" of a deal you are getting.  I would avoid buy and hold completely if you are looking to invest passively.