All Forum Posts by: Randy Gillespie

Thanks for the responses everyone. I left out that the tenant is also currently on a month to month lease so any new paint/flooring would come with the condition of signing a longer term lease. The problem of doing new paint and flooring while the apartment is occupied is a concern too. This tenant has been quick to complain about small items already so would be a bit concerned about having contractors in her place and potentially damaging her stuff.

I recently inherited a tenant who has been in the unit for about 6 years. She has asked for new carpet and paint. To my knowledge it has not been updated since she moved in. For your long term tenants, how often would you replace items like paint and carpet? Would you also ask for a rent increase in this situation, particularly if the unit is under market as this one is? Thanks in advance for suggestions.

Congrats @Cody L.  I live in Wexford and know the area pretty well.  There is certainly a lot of growth in that area on both the residential and commercial side.  If you have any questions feel free to reach out.  Good luck with the transaction!

I personally would not charge the tenant a late fee as long as they made the payment to Cozy per the terms of the lease.  The fact that Cozy takes several days to post the payment to your account should not be a factor in determining late fees.  I've only recently started using Cozy myself but so far I like it.   Considering it is a free service, I don't mind at all that it takes a few days for the payment to clear.  I do log in to make sure they payment is "in progress" by the due date.  I've been meaning to see if there is a way to have Cozy email a notification to me that a tenant has made their payment so I don't have to log in to check.  

Yeah your lender should have a form.  It's typically just financial data.  Doubt they will care too much about any recreational equipment, unless of course you owe money on it.   

Out of curiosity, why do you expect rates to drop significantly in the next 6 months?  Given that the Fed just raised rates, a significant drop in mortgage rates in the next 6 months seems unlikely, no?  I've been expecting them to either rise a bit or at best remain flat.   But I'm far from an expert. Would be interested to hear what others think.    

That's true, but only after 2 years.  And savings account interest is near 0% these days and since your security deposits will be sitting in a separate account anyway, it's not really money out of your pocket.  

Here's a summary with links to the laws. 

https://www.landlordology.com/pennsylvania-landlord-tenant-laws/

I max out my 401k each year to receive company match and reduce taxable income. I've had a number of jobs over the years and have typically at least contributed enough to receive full company match and usually contribute the max allowable. All of those prior 401k's have been rolled into an IRA. I primarily use the 401k and IRA for exposure to the stock market although I do hold a commercial REIT in my IRA as well. For now, I'm using cash for real estate investments, other than the commercial REIT. As I progress as a real estate investor, I may move more IRA funds into real estate investments, but for now, I like having exposure to the stock market as well.

I started by reaching out to people right here on Biggerpockets, although found the person who has been most helpful by driving around one of my target neighborhoods. I noticed a sign out front of a recently renovated property and looked up the company.  The owner was an investor and agent and I reached out to him and asked for a meeting and he has become both my agent and a mentor.   Because he invests himself, he had great contacts and relationships with lenders, contractors, handymen, title companies, attorneys, etc.   So I would suggest first trying to find not only an investor friendly realtor, but one who also invests themselves.