All Forum Posts by: Greg B.

I could be wrong, but, I thought you had to clearly list the possible reasons for applicant rejection on the application in Texas.

http://texastenant.org/application_deposit.html

@Dmitriy Fomichenko you are correct about the article. The conventional IRA was the only one available at the time I got my start in working life. This article explains the things I experienced and the reasons I cashed out.

The 401k rules may have changed but the number one personal financial rule should be never, ever give control of your money to anyone else.

I haven't been around much but I do keep getting updates about this thread.

Saw an article today that I thought might apply here.

How your 401(k) could rip you off

Hi all. I just came across something today I thought I might share with all other property managers and landlords.

I was doing a final inspection on a rental unit. The last tenant didn't stay long and left peacefully after failure to pay rent.

My wife and I turned out the lights to leave the rental and then we saw the vandalism. The past tenant has painted graffiti on all of the walls in a transparent, florescent paint. We have been in and out of the unit and had not seen it before. We thought it was ready to rent out again. The graffiti glows in the dark.

Now we have to repaint all of the interior.

It would have been a disaster if we had rented it out and the new tenant found it before we did.

Very creative, very time consuming. Need to be careful out there guys.

I have a a lease that has converted to month to month with a couple. The husband of the couple moved out August 2 he says, with no notice to me. The wife of the couple is still there and intends to stay.

Both names are on the rental agreement as 100% liable each. Husband calls me today and wants off the rental agreement.

Since the 3 of us entered into the agreement, how do we sever it if she doesn't want to?

@Phillip Dwyer we think alike.

I installed dummy cameras and warning signs to see what would happen. The signs and cameras were torn off the building. I did not install real cameras.

In reality, the angles I would have had to install them on the building wouldn't have helped much. I needed a little help from the neighbors for better camera angle. I never followed through with asking them.

@Dawn Anastasi no one called me for a reference. I am told that she still lives in the neighborhood.

Yes, I agree, the previous landlord did tell me the truth, not sure it was the whole truth, but it was the truth.

Thanks guys.

@Rob K. every region/market is different. Not all markets are bearing 3x rent incomes. Some are around 2 1/2. She was never even one day late on rent. When she interviewed she was on meds and was a very nice person.

From what I understand, people with schizophrenia get to feeling better and quit taking the meds.

I agree about finding out what meds applicants are taking.

Hi guys. I haven’t been around much lately. Got other things going on right now. Thought I would share a story that may be able to help one of you.

June 2012 I had a 1/1 apartment vacant for rent. It was one of three units in this building. I bought this building as an REO in 2007 and cleaned it up. I always had good renters in this building.

I interviewed and accepted a mid 30’s single female on full disability. She had a couple of minor citations but otherwise was clean. Her past landlord gave her a decent recommendation, not glowing but decent. As in “You will always get your rent check on time.” I allowed her to move in and all was well.

About 2 months later the other tenants started complaining about her and her guests. I began investigating and she was inviting some real bad characters, druggies, thugs, felons, etc. I gave her written notice that these guests and others like them were not welcome around the building. Then I found out one of her disabilities was paranoid schizophrenia. On her meds she was a great person. Off her meds and she was very dangerous.

Also, because she didn’t work she had lots of idle time to invite and entertain guests. After I gave her notice about her guests my building began being subject to vandalism. The water spigots were torn off, exterior light fixtures being broken, breaker boxes being tampered with, cars being vandalized. The other tenants were being harassed. She and another 4 year tenant kept getting into confrontations that involved the police. That tenant moved out.

I called the local police for help. I received nothing but a “good luck.” I called the drug task force and told them about the late night traffic and the drop offs at the mailbox. I got a nice “thank you.”

This girl was arrested 2 times and held in a hospital both times. During those times people, bad dudes, were coming and going in and out of her apartment. The police would do nothing. I changed the locks once at her request and then she gave them a key to the new locks.

Every direction I turned I was told that she had more rights than I did and I could not discriminate due to disability. I have already had negative dealings with local MHMR in my other profession so I would not receive help there. A lawsuit would drain me because she would get legal aid through MHMR.

Her lease was to expire August 8, 2013 and that was my only hope of getting her out. I gave her 90 day notice of non-renewal. In mid June she handed me the keys and moved out. I was so relieved. I thought I would have to evict in August.

I got the unit cleaned up pretty quick but her guests are still coming by looking for her. I have not been in a real hurry to rent it out again. I am concerned that one of her friends will rent from me and then she will be back over at the apartment.

I know this is long, sorry. I don’t know how I could have seen this coming. A landlord cannot discriminate against the disabled so does that mean that the disabled get free reign? I had no basis to reject her application, she qualified on every point. Then, I couldn’t evict because of disability and I had no proof the bad guys were doing anything wrong. Her parents kept alleging that I was interfering with her life. It was a tough, lonely 6-8 months of hell.

I have found other methods of making my money work. I have most of my rentals on the market and will profit nicely when they sell. I had a good run of 6 years without any major problems. I had this one and another serious one in the last year. Renting is good when it's good. It can turn bad real quick.

The only words of wisdom I know that I can share is be careful who you rent to.

Good luck guys.

Been a while but I had to chime in.

Fan of both.

I think you have to look at some of this in context.

RDPD was written before 2008. The philosophy was to leverage to the max and bank on appreciation, maybe even forced appreciation. RE had always increased in value and no one saw any other way for it to go.

I began my investing in 2006. It took months before I landed my first buy. People were buying up investment properties that did not cashflow and made no sense to me. The investors didn't car about cashflow, they wanted to capitalize on the appreciation.

Then 2008 hit and the appreciation stopped, and there never was cashflow. So the "investors" hung on a while and then defaulted.

The survivors bought properties that made sense and cashflowed.

Ramsey hit his stride when 2008 hit because of the foreclosures and bankruptcies. Can't blame him. He was ahead of the tide.

Both have their audience and their philosophies. I think risk is in any decision we make and we each have a different risk/reward tolerance.

Got to do your own DD, and make your grown up choices. To each his own.

Good luck.