All Forum Posts by: Rob Chiang

I am perplexed.  I finished up an hour long deep conversation with someone  and they tried to convince me why their decision to RENT and have the option of "being a nomad without owning anything" was the way to go.  Being a renter gives them the freedom to travel and live anywhere they want.  Working remotely means they can live in any city they please as well.  

My question was "what income stream will pay your rent and all of your expenses when you get sick?"  That question didn't really seem to bother them, so I wasn't creating a new investor today.

If this is how the younger "rent everything" generation thinks, we might end up with 75% Renting and 25% owning in 10 years.  

Taking it 1 step further, as Landlords, what sort of accommodations/amenities are you putting in place to make these "nomad" tenants happy to rent your properties?

The simple answer is charge $50 /month for the common utilities that aren't currently metered.  

Is it obvious damage like a burn from a hot iron?  NO

It it repeated cuts on the counter from your kitchen knives? NO

The old, cheap countertop just chipped away.  It's not granite countertop, it's pressed wood.  In my 26 years of experience, any judge will probably go with the tenant on this claim.  Just my .02.  Hire a free tenant-rep lawyer to write the LL a letter.  It's very effective.

$100K and include pet coverage.  The average cost here is about $7 per month.  If you don't require it, the tenant's personal property damage claims against the landlord can be very costly.  Trust me on this.

I am in contract now for an apartment complex less than 16 units, built before 1980. 

During the due diligence period, Seller provides a positive test for asbestos in the joint compound.  (previous environmental report).   Funny enough, it tests negative for lead based paint.

I still have time to cancel the deal.  Haven't decided what to do yet.  

It's easier to deal with a popcorn ceiling because people don't generally touch the ceiling.  Don't touch it and disturb it, no problem.

If I end up buying the deal, asbestos disclosure in the lease becomes mandatory as well as prohibiting tenants from puncturing the wall, etc.  However, it's easy for them to forget when wanting to hang a picture, etc. a nail goes through the wall/joint compound.  Also, any time a maintenance worker creates dust that can be a problem.  

Are there any insurance policies that will cover a landlord for asbestos exposure from their tenants?  I am having trouble getting this answer quickly.  It's one thing to get a good deal. It's another to be able to sleep good at night.

Questions:

1. Have any of you been sued over asbestos?

2. How much % less is the property worth now that this is NEW info?

3. Would you cancel the deal or proceed forward with a retrade?

Any help is appreciated.

 perhaps you could meet some local wholesalers and ask to use their forms. 

What is the predictable vacancy factor for STR in your area- 25%?

 What is the price and what type of asset are you buying?  I don't know the backstory.

I am in the Bay Area, CA if you need anything just holler. The BP FB main group is a great way to shout out as well. Wholesaling is a great way to get started, start going to your local REIA and offer to bird dog for the more experienced ringers.

 You should be aware that the small properties will attract a certain level of PM and an apartment building in a nice location will be accepted by any PM.  When you go through the interview process, if it's a big enough company, ask to speak with the person who will actually be managing your property (boots on the ground) as opposed to the regional manager.  And as with any interview, ask for 3 references of past/current clients you can speak to.  They tell you the most.