All Forum Posts by: Robert Spiegel

@Robert Spiegel 

Great question, and it’s always a balancing act when dealing with long-term tenants who’ve been fantastic overall.

Based on my experience managing over 1,200 rental homes in North Texas, including areas like Dallas, Fort Worth, Plano, and Frisco, here’s how I would approach this:

1. Cleaning Charge: While $540 may feel steep, it can vary depending on the size of the property and local market rates. For a quick turnaround during the holidays, that rate might reflect premium timing. In areas like Dallas or Fort Worth, I’ve seen professional cleaning range from $300–$600, especially when dealing with pet-related cleaning like removing cat hair from carpets. Ensure you have an itemized invoice from the cleaner, which can help justify the deduction.
2. Reasonable Deductions: Long-term tenants often leave normal wear and tear, so I recommend being lenient on minor issues. Items like a missing doorbell or blinds may fall into wear-and-tear depending on their age. However, hauling away a truckload of items and cleaning beyond standard expectations could reasonably be charged to the tenant, as it goes beyond normal use.
3. Goodwill Gesture: Since this tenant was great for 5.5 years—paying on time and caring for the property—you might consider waiving part of the cleaning cost as a goodwill gesture. This can encourage positive word-of-mouth and build goodwill if they’re ever a reference for your property.

Ultimately, focus on fairness and clear documentation. Provide a detailed accounting of deductions, along with the invoices, to show you’re acting in good faith. This approach helps maintain strong relationships with tenants and avoids disputes.

Hope this helps! Let me know if you have further questions.

Originally posted by @Michael E.:

Hi Robert,

I looked at the BP report and it seems like it might be a good deal even at their asking price, if the rent amount in the report is accurate. At that rent it beats the 1% rule. If on the other hand, you have to put $40k in to each unit then maybe not so much. Maybe they would be open to seller financing. Pace Morby was on a few BP podcasts recently and has a Youtube channel where he does live calls with sellers. He might give you some more ideals to help you close. Good luck!

There is definitely a lot of work to be done:

- Paint is pealing off all the walls
- New appliances for 3/4 units
- All units are required by the TWP to be connected to sewer now
- Bathroom rehab for 3/4 units
- Above ground oil takes removed and boilers replaced or retrofitted for NG (This is more a nice to have)

I asked the owner if he would be willing to do owner financing and he said no... He wants an all cash offer on both properties with no contingences... seems like a case of the seller thinking he has something worth more than it actually is in current condition.

I'll check out Pace Morby thank you.

Robert

Originally posted by @Michael E.:

Hi Robert,

I looked at the BP report and it seems like it might be a good deal even at their asking price, if the rent amount in the report is accurate. At that rent it beats the 1% rule. If on the other hand, you have to put $40k in to each unit then maybe not so much. Maybe they would be open to seller financing. Pace Morby was on a few BP podcasts recently and has a Youtube channel where he does live calls with sellers. He might give you some more ideals to help you close. Good luck!

My guess is that its costing them ~$700 a month to hold the properties vacant, just tax and insurance, no utilities the properties are winterized.  No idea how long they have been on the market I drive periodically hoping to catch a neighbor outside to ask. Moving into a senior living home isn't off the table, I did some internet sleuthing and found that they own a house in the next town over, based on the size this doesn't look like an investment property and is probably their primary residence.  The Wife also told me that the rentals were to much work for her because she has to take care of "him".

My guess is no other offers are coming in.  IMO the old man is stubborn and does want to budge, I think the way in is through the wife.  I was planning to write a letter to them, with the hopes that she intercepts it.  I'll detail my offer and hope that she applies the pressure on him to accept...

Thanks again for your advice and perspective. 

Robert

Originally posted by @Melissa Robbins:

Hi Robert, 

I am no expert here.  I own 3 SFHs in KC but just got into investing less than a year ago. I stumbled on your post here and wanted to comment. 

A few things that come to mind regarding influencing the seller - what is it costing them to keep these deals? Adding up insurance, utilities, taxes, etc increases their expenses.  If the price has already gone down, any idea how long they've been trying to sell?  What will they do with the proceeds? Are they moving into senior living or staying in their current home?  Do they want to move? Maybe uncovering this could lead you to a new sales angle.  

Could you get creative with your offer and add an escalation clause that states you will offer $200K each but will beat the next bidder by a certain percent, not to exceed XXXX amount? Maybe play around with how long you want to leave that offer open.  That could give them a sense of urgency if no offers come into them over the holidays.