All Forum Posts by: Seth Galligan

Thanks for that link @Paul Welden!

Thanks so much everybody! This is great advice. We'll make sure to pay special attention to contractor credentials and coordination.

CHEERS!

Hello BP Community!

Getting set up to buy my 3rd rental property! We plan to house hack a multi-family. I am looking at using an FHA Fixer-upper loan (203K). It seems like a great option for us - almost too great. My spider sense is tingling and I suspect that there have got to be some catches that will jump out at us along the way.

Can anyone share experiences they've had with these loans? Were there any "gotchas" that you wish you would have known about before you got into the process?

Any advice or guidance would be most appreciated!

P.S. - I love to give back to this community. I am a project manager with over a decade of experience. I would be happy to help anyone who could use a consultation on project plans for real estate endeavours e.g., rehabs, renovations, moves, business processes, etc.

CHEERS!

@Patricia Steiner and @Theresa Harris - thank you both so much for your replies. This issue has actually evolved into one of the best milestones in my real estate career so far: I found and hired an excellent property manager! I've been thinking about it for a while and always knew it was inevitable. I am planning to scale this business and I had no intention of trying to do everything myself. It was only a matter of time before I hired a PM and this experience just gave me the push I needed to get on with it. During my interview with the PM I hired, he proposed each of the strategies you both suggested. Everything is all set now and the PM has begun working with the tenants to resolve the issues. I think we are all going to have a much better time from here on out and I am fairly certain (time will tell) that my property is in good hands. Hopefully, this is the beginning of a great relationship with a quality PM. At the very least, I'll gain experience in working with PMs. Thanks again for the help and guidance. Very much appreciated!!

Short Story

I decided to allow 3 cats in a unit. The tenants signed a pet agreement that states the pets must be house broken and I am finding cat pee on the floor when I do inspections. I sent them one warning and then, after finding the situation did not improve, told them they had 10 days to get the cats out. Unsurprisingly, I woke up to some angry voicemails claiming the cat pee was water. I could use some tips on what to do now to enforce the agreement. I want those cats out!

Longer story

I recently moved my family out of our home and into a duplex that we are currently house hacking. We rented out our former home to a group of late twenties/early thirties men. Two of the men requested that their cats be allowed on the property. I agreed, but had them pay a $400, non-refundable pet fee and sign an addendum to the lease. It seems like a pretty good doc; the agreement states, among other things, that pets must be housebroken and may not cause damage to the property. It also states that if "in the Owner's sole judgement" there is a violation of the agreement, the pets will be immediately and permanently removed, upon written notice from the owner. So, from a contract/lease/legal perspective, I am feeling pretty solid.

The issues are coming in actual enforcement. During a recent inspection, I fond vomit and urine on the basement floor. The litter boxes were also pretty gross. I sent written notice of the issues and warned that if things did not improve, the cats would have to go. A few weeks later, I went back and found 4-5 puddles of cat urine on the floor and the boxes had slide back into their previous gross state. I sent a note saying that, unfortunately, the cats would have to go as the situation was now in breach of our agreement. Since they have only been in there for 6 weeks, I offered to refund 50% of their pet deposit.

Today, I woke up to angry voicemails. I guess it really should be no surprise that this is not going to be easy. The tenants are claiming that the cat urine I found was water. I lived in the property through one of the rainiest springs in 100 years, so I know where water can get into the basement. Water does not get in where I found the urine. Also, I am a cat owner. I got down on my hand and knees and smelled the puddles. There is no mistaking cat pee!

What to do now?

Has anyone had to deal with a cat "eviction?" How did you handle it? What if the tenants refuses?

Any help or advice would be most appreciated!!!