All Forum Posts by: Eric M.

Welcome to BP Nicholas! If I could give any advice to myself at 25 it would be to start "house hacking". I highly recommend checking out @Scott Trench's new book Set For Life. 

Good luck on your new journey!

@Tyler Mutch, have you talked to the cops who responded to the incident? In Wisconsin if you can get a letter from law enforcement saying your tenant created a nuisance you can give them a 5 day eviction notice.

"A property owner may terminate the tenancy of a tenant who is under a lease for a term of one year or less or who is a year-to-year tenant if the property owner receives written notice from a law enforcement agency, as defined in s. 165.83 (1) (b), or from the office of the district attorney, that a nuisance under s. 823.113 (1) or (1m) (b) exists in that tenant's rental unit or was caused by that tenant on the property owner's property and if the property owner gives the tenant written notice requiring the tenant to vacate on or before a date at least 5 days after the giving of the notice. The notice shall state the basis for its issuance and the right of the tenant to contest the termination of tenancy in an eviction action under ch. 799"

I would prorate the rent for the time he lived there. I would certainly not refund him until he is gone and you have squared away his security deposit.

What does the lease say the term of the lease is? I'm not a lawyer, but my strong suspicion is that if the lease doesn't specifically say that the lease ends when he separates from his job then they have no standing to evict until the lease term is complete.

If you are cash flowing just enough to cover your HELOC then you aren't actually getting any cash flow. I wouldn't do a deal that doesn't cash flow. Don't fall in love with the property, fall in love with the deal.

@Robert Callaway

"Tenant will be liable for all court fees concerning eviction."

In Wisconsin this would make your entire lease null and void.  I was flabbergasted when I found out.

@Brandon Turner always says that 50% of a great deal is better than 100% of no deal, but what about a small percentage of a large deal vs 100% of a smaller deal?

It seems like there is a lot of love for syndication and partners on BP. The advantages I see with that are that you can bring in expertise that you lack, along with being able to take advantage of some economies of scale.

On the other hand having 100% of control of a deal and not having to answer to anyone else sounds divine.

Curious what BP thinks about this.

I've never invested out of state or turnkey, but shouldn't the property managers be doing regular inspections on the units? I've hear a lot of good things about @Chris Clothier and Memphis Invest, but it seems like some of the fault may be theirs.

@Mark Campbell

"he wanted a clause that I wouldn't show the property until he gave notice to vacate"

I hope you didn't agree to that. That could come back to bite you both at the end of the lease term and if you decide to sell. 

I will defer to @Brian Eastman as he has much more experience with SDIRAs than I do. It is my understanding however that any transaction benefiting a disqualified person (@Greg Sonnier in this case) would be considered a prohibited transaction. It seems to me if you will be using it for your office occasionally that you would be at risk.  The penalties are so severe that I would not risk it.

I'm not a CPA or attorney and therefore my advice is worth what you have paid for it.