All Forum Posts by: Ray Hage

Hi. This is an easy question but the answer is complicated. There are pros and cons to increasing rents on a good tenant. That being said, I generally raise the rent a little bit each year, especially if I have made some nice upgrades to things inside the unit. If the tenant is well below market rent, I wouldn't feel bad about raising it a bit. When you are not renting a unit out at the market rates for the quality of the unit (neighborhood, size, amenities, etc), you are either robbing a tenant or robbing yourself. Just try to be in line with the market. If the tenant is putting their own money into the unit (for example, I had a tenant build a nice outdoor patio space at this own expense), you should consider that as well.

Both 33311 and 33313 are growing to an extent. Personally, I invested in a condo in 33313 at a below market price (IMO) with a high cash-flow. I wouldn't call the specific area that I bought in "dangerous" but I wouldn't call it super safe either. There are still deals to be found, but I can tell you it has gotten a lot hard than it was even 3-4 years ago. Be patient and find the right place that you are comfortable with

I'll agree with you that right in South FL it is difficult to cash-flow positively if you're trying to get into the market now due to the recent influx of people from the northern parts of the US. There are still some good deals out there but not nearly like what there used to be just a couple of years ago. You're going to have to really dig to find a great cash-flow positive property at current prices. As others have said, I would generally avoid HOAs completely unless you have the time to research each specific community.

Your best best to is to buy a place in an up and coming area (read somewhat poor, but not dangerous) and plan to hold. I bought a condo as an investment 4 months ago (I know I said to avoid HOAs haha) and so far I have been very pleased with the board and my cashflow. I consider it a bit of luck, skill and good timing at the price I got it for with the high rent and relatively low HOA fee. It's 4 months later now and I am still pleased financially speaking.

Congrats man. It sounds like you are both intelligent and hardworking. Keep doing what you want to do in life. It sounds like you deserve everything! I hope to be in your shoes in 3 years or so (I started my RE journey a little late)

Since it is a bit of a complicated case, I'd probably speak to a lawyer if I were you. I am not at all familiar with PA law I can't speak ont that. It sounds like you could take them to small claims court since they violated several terms of the lease and you have some real damages (smoking in the unit, staying past the date, terminated the lease early, messing up construction plans, etc). It sounds like you got a pretty solid case in your favor. I'd hold onto their deposit at the minimum and state your reasons clearly in an email and letter.

I like CashApp and Zelle the most. I have been using both for years and never had an issue