All Forum Posts by: Ron Rohrssen

@Nathan G. Thanks! That's very helpful. I like the breakdown.

@Julie Hartman Thanks. That's helpful. :-)

I'd still entertain the episode number if anyone else remembers this.

Thanks @Darson Grantham. Good to see someone else is thinking similarly.

I've been trying to find a BP episode with a guest that had a lease that did a great job of letting the tenant know up front all the costs related to repairs. In particular the guest talked about the cost of carpet cleaning, carpet stain removal, carpet patching, etc. 

Does anyone recall that episode? Or, does anyone have a sample of their lease informing tenants of the costs that might arise from anything other than normal wear and tear?

@Joe Splitrock Thanks for the excellent summary. Fortunately, all of my units are filled with employed and paying tenants. I suspect that may change with Spring/Summer if people want to move around. So, I'm looking for proactive solutions since the moratorium may be extended to September by the next pandemic package.

I live and invest in Iowa. So, fortunately, I'm only looking at one set of laws.

It seems pretty clear that I can start a tenant on a MTM lease agreement. Under that agreement, either party would have the ability to make notice of non-renewal with a 30-day notice.

It's not my first line of action with a tenant that may fall on hard times. I've been there with tenants and we've always worked out a solution that keeps them housed. In all cases I've recovered rents and fees within a few months. I'll chalk that up to renting to well-screened tenants and above average properties in good locations that can command higher rents.

The MTM option might just be for my own peace of mind in giving me a recourse that isn't in conflict with the eviction moratorium.

I'd be interested in other's thoughts on the strategies they are considering for dealing with the eviction moratorium.

@Mindy Jensen Can you expand on what is not legal about using a MTM? This seems perfectly legal from my perspective. I haven't consulted my lawyer. I'm in Iowa, and IA code is pretty clear that you can begin with a MTM lease instead of a 12 month lease.

@James Wilcox Thank you for a more tempered response to the many over reactions here.

@Mike D. By all means rent your apartment/home. I don't know much about your situation from your post. Do your regular vetting of the applicant. I hope that includes background checks (both criminal and credit). Do your reference checks (employer, personal, former landlord). 

Consider changing the term of your lease to a shorter period if you have concerns. I'm not a lawyer. You should consult your lawyer if in doubt.

If you look at the Iowa laws for landlords (Iowa Law) the default is 12 months. But, the law allows the landlord to specify the term in the contract without specifying limits. So, if you end up with bad tenant, you can simply not-renew the lease at the end of the term. I have mostly used 12 month initial leases which (by Iowa law) default to month-to-month leases after that. 

For some situations I use shorter leases to reduce my risk or cost of eviction. For example poor credit from a medical issue or divorce, but ample income and stability otherwise.

@Yonah Weiss My degree is in Computer Science. My career has been in various businesses, and several roles in management.

The analytical skills honed in system design and analysis have helped greatly in deal analysis, market segmentation, and building analysis tools and knowing how to leverage technology.

The management roles have helped greatly with people skills, patience, long-term planning, business concepts, financial planning, organization, prioritization, and learning how to relate to people at different levels of an organization and in society.

@Rahul Gupta Why do you need a hard money lender instead of a traditional (residential/commercial) mortgage?

What are the terms you are seeking and the amount needed to finance?

Perhaps if you positioned this as an investment offering with the pro forma, and many other details you would find someone willing to back your play.

Investment Info:

Single-family residence buy & hold investment in Cedar Rapids.

Purchase price: $82,999
Cash invested: $9,300

2-bedroom, 1 bath that backs up to a park and is 1 block from one of the areas major employers.
Extra-sized heated garage and fully fenced back yard.

What made you interested in investing in this type of deal?

It's a well kept home in a great location for Class B rentals. A local CU was offering a 10-YR ARM mortgage with 10% down that really made the numbers work.

How did you find this deal and how did you negotiate it?

This lead came directly from a realtor I have a relationship with.

How did you finance this deal?

10% down, 10-yr ARM amortized over 30.