All Forum Posts by: Account Closed

Thank you @Scott Mac -that is an interesting website for historic local documents. I didn't even know that existed - I will have to check it out. :) 

@Account Closed - I agree. thanks for your feedback! I will be sending a 30 day notice today.

@Nathan Gesner- I wish I would of known about the tenant estoppel certificate earlier in the process! thanks for providing a link. The seller did not give me much information and I suspected there was a reason why... I will be wiser in the future regarding this. It was like pulling teeth to even get a Security Deposit amount from the seller, I doubt he actually knew the true SD amount. The tenant had a few part time jobs prior to COVID so they were able to work. I smelled alcohol on their breath during their visit so the "I have mental health issues" could be some substance abuse. Thanks again for pointing out the form to me. Much appreciated.

If anyone has ever had this situation before and could shed some light on how it handled I would be forever grateful.

I just closed on a househack this weekend - a 3 bed 2 bath home with a 1 bed 1 bath carriage house in the back above the garage. My plan is to rent out the 3 bed 2 bath and live in the carriage house, effectively living for free and saving up for my next rental. However, currently there is an inherited tenant in the carriage house. The tenant has been there for the past 6 years and the seller did not have any info whatsoever except their name and phone number. A lease was not signed, and the tenant is month to month. I called the tenant and let them know that I will be living in that unit and if they could please vacate by June 1st, the tenant was very surprised and upset... I will also be giving them a letter of 30 day to vacate non-renewal letter this Friday. 

The tenant has visited me once at the larger home that I currently reside in and has told me that they have mental issues, health problems and are not able to get unemployment but they are getting their stimulus check on the 15th and can pay rent by then. They also are not able to go back to work given the current COVID19 environment and their health conditions. I don't want to me inhumane but I really don't think that letting the tenant stay would be a good idea as I dont have much info on them through the seller and the rent is below market at $475. However, I do feel like I should do something to assist them in leaving... What would be the best way to do that? They did say they have a social worker - if that helps. The tenant obviously had mental issues and 56 years of age so its very stressful on them understandably. This is my first experience as a landlord and I want to do the right thing by the tenant yet still go through with my plans for the unit. 

@Nicole Heasley Beitenman I would be interested in doing a monthly meetup! I am currently in Columbus. 

Thanks for the input everyone! I am in the same boat. About to close on my first house hack and making a list/spreadsheet with costs for all appliances and projects I will need to complete before I have tenants.

What about common area furniture?  Is is acceptable to bring in used furniture as well?

Hi @Spike Scarberry - I have thought the same thing. I want to relocate for real estate and I work remotely (property accountant). Are your job skills so that you have the possibility to relocate or can you easily obtain a job else where?

@Lee Ripma - I have seen some articles online that site Greeley as a massive growth city as well.

Overall, I think that when making major life decisions you have to think, what if this goes south what is the worst case scenario? 

You can always move back or start somewhere else. The move does not have to be permeant, it can just be short term. But I would also suggest visiting the place where you wish to move also. 

Just my thoughts! 

I appreciate the responses -

hmmm... If we are looking at each market separately, then I would think most of the deals now are found in the tertiary markets - where cashflow is more apparent than future appreciation. 

If population growth continues in certain places, yes, the appreciation play is the way to go. However, I did consider that maybe the other reason for the home price increase is due to the low unemployment rate as well... The more buyers are certain of keeping their jobs, the more likely they will be to want to buy a home.

@Gordon Starr I have been keeping my eye on Dayton. It seems to be heating up but also there are some affordable homes that seem to cash flow on paper.

According to a Forbes article I recently read "5 Signs your real estate market is a bubble"... My conclusion is that many markets may currently be in a Bubble (and therefore it makes sense for me to wait it out for my first investment):

1. Shaky loans - Not sure about the status on this one... Personally My credit score is very high and I have no debt. Not sure if there are others out there being sold on mortgages they cannot afford based on their income, credit scores, ext.(Forbes take is that credit standards are still very tight)

2. Lots of Leverage - In my opinion when there are banks ready to give out conventional loans at 3.5 -4% its getting shaky. I have applied for a pre-approval on several loans and what the bank has approved me for is a very high mortgage that I would not be comfortable taking on with a conventional loan. Although I have heard of many instances in my current Phoenix market that homes are now being purchased with cash many times.

3. Home prices out pace wage growth. - This one is the most concerning to me. My parents live in rural town in Ohio and just sold their home $100k more than what they paid for, and wages are not growing at such a rate to sustain this rise in home prices. I think this will be the next major indicator that we are in a bubble.

4. Foreign demand slows - according to Forbes foreign real estate demand has diminished. I have no personal experience or knowledge of this though?

5. Interest rates rise - Although interest rates have been low I don't believe this will help the wage/home price dilemma. 

Am I being caught up in analysis paralysis or is this a legitimate concern that I should not be buying at this time? I have been saving up for a DP and currently I have $16k saved but I would like to save up $25-30k when I buy. Im itching for a deal in the next 6 months but I don't wanna jump the gun either...

What do you think?

Hi Gerardo - I don't know of any businesses but I could work with you if you don't find anything.