All Forum Posts by: Account Closed

My other investments are all multi-family residential, that is my core investment area.  The commercial building is about 15k square feet and is all professional offices.  

I can only speak for myself, but the projected returns would meet my search criteria.  From what I have learned so far, with my limited experience, you are accounting for a potential protracted vacancy, and should consider allocating some capital to update units when they turn over.  Not sure what your approach will be to a potential tenant that may want changes made to a unit.  

Russ

@Michael Willis, seems like you have done your homework, from the information you have posted the deal looks promising.  What is the mix or office/retail space?  

I have a commercial building about the same size, has 6 tenants which are all office spaces.  One item to consider is the elevator, the cost of which surprised me.  Replacing an elevator can cost well over $100,000, it is worth having an inspection done.

Good luck with the deal and let us know how you make out.

Russ

@Scott Long how are you making out with your timeline? You can make an offer without waiting for the LLC to be formed, just make sure on the offer letter you list the purchaser as yourself, or "LLC to be formed." Most sellers will not have any issue, the only objection you may hear is someone who is concerned that you may assign the contract to another party. In the rare case someone does object you can assure them, in writing if needed, that you will be the proprietor of any LLC formed, good luck!

Russ 

Hey @Omari Morgan, there are a few good property managers in the area, and many not so good.  I have used Rich Lana at Lana Property Management and have a great experience.  Good luck, hope you find a manager that works for you.

This was a great podcast, very interesting.  I love the idea of using notes as en exit strategy, especially as interest rates are rising.   Can't wait to read the book.

Scott,

Welcome to BP, the community in Rochester is very supportive.  I am a local investor and focus in the same areas you expressed interest in.  

As other people have already said, there is a lot of competition.  I have had luck working with brokers who are able to source off market deals.  If you need any referrals for brokers or property managers I am happy to pass along my contacts.  

Good luck hunting for your property.

Russ

As soon as I posted my last reply I knew what needed to be done.  I let the tenant know they have until Friday and if they are evicted they will lose their section 8 voucher.  

It is not just about the money, I am dedicating too much time one tenant, as evidenced by this post.  I truly appreciate the feedback because it reinforced what I maybe already thought I should do.  

Thanks again for the replies, they did help.  I will let you know how it turns out.

Thanks for the thoughts so far, appreciate the feedback.  @Corby 

@Corby Goade the situation I am considering is not about the eviction itself.  I have over 100 units and have no problem evicting someone, that has happened a number of times over the years.   My hesitation in this specific incident is about the bottom line.  It will cost me more to evict and renovate than I would potentially lose if the tenant pays partial rent for the remainder of the lease.

To more accurately define my decision, do I make the decision based on the best financial option (which would be to let them stay), or on principal and evict them anyway.

Thanks.

All, hoping to get some feedback from the forum.  

I purchased a duplex last summer and inherited tenants in both units.  The tenant in one unit is on section 8, which covers 75% of the rent payment.  The tenant has been late in the past but always caught up, including late fees.  The tenant is now 2  months behind.

Normally I would follow my process, of a late notice after 3 days, and then start the eviction process.  There are a few reasons I have yet to start the eviction process.  

1. The unit will need a few thousand dollars in renovations before it can be rented again.  

2. Winter is a very tough time to rent a unit in the area and may sit empty until Sprint

3. The property is very high cash flow, even with the partial rent payment the cash on cash is above 25%

4. The tenant does not make trouble, other than late rent

5. There is a security deposit that is more than the outstanding rent, and would cover another month of partial rent.

I am continuing to reach out and work to set up payment, and I am within the rights of the lease to start the eviction process.  The cost of the eviction, renovation, and vacancy while finding another tenant will cost more than the lost rent, even if it continued for the remainder of the lease.

I could start the eviction process immediately, or wait until Spring when finding a new tenant will be easier, or get what I can and let the lease run out until September.  

Let me know what you think, thanks.

Welcome to the site Gregg.