All Forum Posts by: Will Wu

I don't know in IL. But here in Florida. Even a month to month "paying" tenant. It cannot be evicted if they don't owe rent unless the Landlord serves them a 15 days notice to terminate the month to month lease. If tenant does not leave then he can file eviction after the 15 days. However this type of eviction where money is not due is highly contestable so it could drag for many weeks more than a standard non paying eviction. And if the landlord is an LLC the eviction have to done by a lawyer hence increasing the cost. If there are 5 different persons they probably have to file separate evictions. I was in a similar situation where I purchased a couple of properties with roomies. Best is to tell them you will file for eviction but you are willing to offer a few hundred bucks for them to leave voluntarily (cash for keys).

I'm in the process of building one 4 plex and 2 duplexes. I think the cost is around $120~$150 / sq ft. 

1) I mentioned that all the buyer needs to do is to add a language on the contract that "Seller will be responsible to deliver property free of liens and code enforcement violations". That will make the seller responsible for clearing any violations prior to closing. 

2) The buyer has no business calling code enforcement on the seller to add pressure on the seller as you stated on your post. That move, in my opinion, is very unethical that will automatically piss off any seller and will break any deal. Only the tenant or at most a neighbor that could be affected should call the code enforcement. The buyer (that is not even under contract) is not affected at all by how the seller is running its property and should not attempt to use this type of tactic to add pressure to the seller. 

3) There are many types of landlords. It seems that this seller is focusing on renting to low-income roomies. Or as the buyer claims (people with filth). Perhaps the buyer plan is to rehab the property and charge higher rent to more affluent tenants. However, there is a market for roomies and all they want is the cheapest rent they can afford. They are just one step away from becoming homeless if they are paying rent the cay afford instead of sleeping in the street that works for them.  Again, if the tenant feels they are living in an unsafe condition they are the ones that should complain to code enforcement. 

 A buyer reporting the seller to code enforcement? That is a pretty low move. I will immediately tell the buyer to go to hell if I found the buyer did this. If anyone feels that the premises are not up to code the Tenant has to report it. Buyer has no business interfering with other people business. And if there are in fact "code violations" issued by the city the Seller will need to clear this violation prior to closing anyway. Just put in on the contract "Seller will be responsible to deliver property free of liens and code enforcement violations". 

Removing tenants is costly and it will take a couple of months or more if tenants contest the eviction. It seems like the price you offered is not attractive enough for them to do that. Usually, a seller will want to sell fast and not go thru the lengthy eviction period and if you are willing to take over their tenants problems perhaps that will be a good reason for sellers to sell it a lower price. 

One license of QB desktop you can use on as many companies as you want and you just need to update it every 3 years when they stop supporting your OS. 

I have 3 parcels in Miami zoned for building one Fourplex and 2 Duplexes. I'm in the early stages of hiring an architect. I was told the cost for building will be around $120sq ft. 

 Joel, Thanks you for your input. I learned a lot. Specially your preference to look for Destination type tenants make a lot of sense. 

Thanks Joel, 

Thank you for your suggestions. I'm seeing some interested Commercial deals that generates 7% cap rate. My concerns about commercial are that these products are more vulnerable to the economy. If the economy goes bad more business will struggle and the risk of having empty units will be higher. While residential especially for middle to low class properties the demand will be there no matter how the economy goes as people needs to have a place to live.