All Forum Posts by: Brian Tietje

Agreed not over. I also agree with you @Tony Gunter. I suspect NY in particular was holding the $ to use for other things knowing tenants would not suffer from the moratorium in place.  Its crazy they have released less than 5% over 3 months. It is sad to see the lack of leadership across the board and both parties. Seems they have gotten comfortable playing the blame game on each other as a distraction instead of creating solutions. This may not be popular but its not Bidens fault any more than any other politician. I think they are ALL worthless.  

Everyone makes great points. I will add check existing inventory and % of available dates on sites such as VRBO and Airbnb. I managed a few STR close to my home from 2013 to 2019 and could feel the fluctuations in bookings based on increased popularity in our area and the addition of inventory by other landlords. All and all it was very lucrative, but being self-managed with other businesses I have became not worth it as the property values increased I simply sold them. I think it's a great educational experience to obtain for any landlord.

This hot my mail today. Hopefully, this ignites activity in lagging programs such as NY's ERAP Program. I am skeptical the state was holdiing the $ and dragging its feet in releasing funds to landlords because no evictions could take place. The last article I saw in the 3 months less than 5% has been distributed. 

"The U.S. Supreme Court ended the Centers for Disease Control and Prevention (CDC’s) eviction moratorium Thursday night, giving much-needed relief to America’s small housing providers facing financial hardship for more than a year.

In a 6-3 ruling, a majority of justices agreed that the stay on the lower court’s order finding the CDC’s eviction moratorium to be unlawful was no longer justified.

In their order, the justices wrote, “The moratorium has put the applicants, along with millions of landlords across the country, at risk of irreparable harm by depriving them of rent payments with no guarantee of eventual recovery. Despite the CDC’s determination that landlords should bear a significant financial cost of the pandemic, many landlords have modest means.”

The case was brought by the Georgia and Alabama Associations of REALTORS® and other property providers, with NAR's help.

In May of this year, U.S. District Judge Dabney Friedrich for the District of Columbia had struck down the ban as unlawful, but she stayed her ruling pending appeal. The case wound up twice before the D.C. Circuit Court of Appeals and Supreme Court." 

No right answer here. At the end of the day it will be your property and you may do as you wish.

I would take ownership and assess each tenant and their ability to pay and how they conduct themselves the first 4-6 months. Then figure out who I want to move on and raise them 20% or so. The rest after 6 months I would raise 5-10% depending on the situation.  

I had a similar situation a year ago I purchased. The minimum had been done the last 30 years A solid C to C- in a B+ Location. I left everyone alone at current rents, even asked a few that were going to leave to stay. I said I was not changing anything but making repairs they needed. I essentially broke even in the last 15 months. 

A few asked me to always wait until after the third to deposit checks due to Social Security clearing. No problem I told them. Some of the most stress-free tenants ever, luckliy. 

Now fast forward a little over a year and the first two are moving out. I made some minor common improvements and prepped for more this year. The units when they are rerented this summer will be refreshed and will net me about  60% more per unit making this a great investment both in cash flow and value appreciation. 

I am now entering year 25ish in investing starting with a duplex I lived in 1/2 of. All of my units are slightly below market, well maintained, and when I acquire new ones I typically gut renovate them. My turnover is less than 2% a year across my portfolio and all of my tenants are current during COVID but for a house, I acquired in October (I knew they were bad) that have not paid 1$ since. I am sure many people here make better returns than me overall but my portfolio is really stress-free. No 1 way to be an investor, but I always suggest a long-term view unless you are flipping (which I do not do as I learned the hard way I am not good at it). Good luck! 

In my opinion, it is SAFER to use your own capital and go BRRR. 1) You will have enough "learning" during the rehab to manage the construction timelines and material investments. I rarely meet a project that comes in on time and under budget. We also do complete renovations and repair foundation up. 2) To maintain your profit margins. Borrowing money is an expense, especially when you add fees such as pts etc. For me, that would eat up 10K + per house during construction. I use that to place better materials in the properties such as stainless appliances, granite, Hardwood floors 3) I started with a state 3% down loan 20+ years ago and financed the construction with sweat and a Credit Card. So borrowing is the way many start. But as a cash buyer and rehabber, I have a lot more flexibility and I can complete my projects starts to finish faster than many others I compete with. I typically get my refi with a 75% LTV within 60 days of my final inspection. Takes up to 30 days just to get the CO from the city I am in.

If they give me 30+ days notice I treat it same as a term end. I typically get my new tenants from existing so it continues the strong natural lead flow. If the place is fine just any normal security deductions. No biggie for me to create unnecessary friction. I prefer happy tenants that want to be in the place. 

I generally do not raise rents every year. The caveat, this is dependant on how the tenant treats the property and of maintenance calls I receive. I do my own property management. I have also let some units go a little too long between increases. All and all I have solid margins and I am still able to add multiple units each year. On average my tenants stay 5 years and the reduced turnover expense and/vacant lost months in between in my opinion make up the revenue longer-term. Last 3 years I have run a 99% occupancy rate. 

Saxon, 

I am not quite sure from which perspective your question is based. That you are acting as the seller OR As the buyer? As the seller, I have my attorney draw up the contract handle title and file the mortgage with the county, I also have the amortization schedule sent to my accountant for tax purposes. I charge between 5 and 8 % depending on the amount of the loan. 

When buying, it all depends on what you and the seller agree too. In today's market, I generally pay about 5% ( I get commercial mortgages 75LTV at 4.5%) but with the private deals, I usually do 10 to 15% down, 3-5 year baloon. I have my lawyer work with theirs to ensure the mortgage is filed properly etc. I know some may do this on their own. With all deals I have my laywer involved. Not only does he give great legal advice I am fortunate he asks great business questions along the way as well. 

If the part about the bad boyfriend moving in after the contractors were gone and your tenant was not there this is not a tenant issue but a PM issue. You were the victim of a squatter, not the tenant. Not sure how far you live from the properties but its always good to drop in and investigate on your own. All of my properties are within 30 minutes of my home and I am there frequently. I also buy close to my other homes and my tenants know that. I build solid relationships with my tenants and if something is amiss, they let me know!

Poughkeepsie like many small cities is about the neighborhood. 3b/1bath can be from 900 to 1800 a month depending on if its a A,B or C class property, off street parking or not, or if heat is included.  Good luck!