All Forum Posts by: Shane R Smith

Cameron,

We should have pressed harder for the deposit. Had this not been our first one and wanted a few months rent in before our vacancy we would have. But lesson learned. We intend on talking with him in person and explained that you mentioned that we don't want him to go and intend on renew again and again. 

Thanks!

After thinking some more... what's the point of having the lease if they really aren't bound to it? I mean, we as landlords, can't just ask him to move out with 30 days notice unless he is violating the lease or if the lease reaches term. Not that we want to run a business where we are just hardcore and can't accommodate when they give reasonable heads up. We just want to understand what its allowed with in reason. 

Thanks, 

Thomas S. 

Thanks for the advice. We are likely going to work something out with him if he insists on getting out. As you say there is plenty of time to get the unit rented so we should have very minimal vacancy and will try and get him to cover the days after he leaves to the when the new tenant arrives. Should be just a few days to get it cleaned and freshened paint if needed. 

Matt K. 

Thanks for the info. We are going to explain to him in person why we put him in the 6 month lease. It was really to feel him out and get the renewal schedule to the summer months. Maybe this will smooth him over and consider staying. If not we will move on. 

Keith 

I like that idea, like you say they will leave anyhow but the people that follow the rules we be even less likely to make the change. 

Mary

Yes Honestly. I get the impression we did something wrong based on your comment. Do you have some insight on how I should go about it in the future? Or what would you have done if you were me in November when we put them in leases? Obviously we are new to the game so we are learning as we go. 

Hello fellow BP'ers,

The wife and I are having our first not quite sure what to do moment as landlords. 

Background: 

We bought our first duplex in October 2018. We inhearited 2 tenants that were had been there for 3 yrs. At the time a closing they were on month to month leases. So as typically recommended by most we got them into lease agreements. One of the two tenants requested a 18-24 month lease term, which we pondered doing. The concern we had is he did not pay a security deposit when he moved in 3 yrs prior. So we said we would consider an extended lease if he met us in the middle for a security deposit $300. So he was upset and didn't understand why he would need one since he was such a good tenant. So with that reaction and the first rent payment being 1 day late, which was an address error on his part, we decided to go with a 6 month lease. The 6 month lease was also to get us out of the snow months during renewal time. Without requesting a security deposit. That way if he was a trouble tenant we weren't stuck. 

Current situation: 

We just received a message from this tenant asking to break his lease at the end of February that way he could move into a place that uses longer than 6 month lease terms. 

Next steps: 

That's the question! We obviously could hold him to his obligation but then we risk a deposit-less tenant trashing the place. We could let him out but then we have no way to cover the vacancy due to, you guessed it, no deposit. If we let him out but require him to pay rent untill we fill it we could potentially not get the rent out of him for that as well.

Should we say we will sign a lease extension with aren't bump after the 6 months? Currently they are below market rents so we are trying to inch that up. 

Looking for advice from the more experienced folks.

Any advice us greatly appreciated!

Thanks, 

Melane investments LLC

@Bill Ernst thanks for the info. I think I could do most if not at all. Just have to learn how to tie it into the foundation. Just a bit different then framing a window in a wall. I'll have to do some digging to see if there is a decent bump from 1/1 to 2/1 in my area. Thanks for the advice Bill!

@Wayne Brooks I was thinking something similar. Asking a basement bath kinda makes it expensive. So the Return may not be any good. Thanks!

Should we add a room? Background: We are in contract on our first duplex. It's a 1/1 each side with a full basement. We are looking to add some value to the place and we were thinking of how we could add a room. So my thought was add an ingress/egress basement window and make a bedroom downstairs. Next steps: Seems a bit unique so I'm not sure how much I could bump the rent. Does it count as a 2/1 rental or somewhere between? Need to get a decent ROI on the add if I go through the work. Thoughts and advice would be greatly appreciated! Thanks!

Thanks everyone for the push! In contract today. Got it for the 100k list. Wouldn't budge on price. Hopefully the dudilgence goes well. Just waiting for the real estate snowball to start rolling! Thanks again for the motivation!

Hello BP!

My name is Shane. I have been researching and learning for the past few months. I have offered on only one. The offer was low enough I couldn't really loose. So now I have come across one that almost checks all the boxes. 

So quick low down on my goals. I want to start investing in multi-family and then transition to larger multi-families. My budget at this point is 100K. I can afford the 20% down on that price. I'm targeting 12% ROI and with at least $100 cash flow per unit.

Details:

https://www.trulia.com/p/oh/urbana/131-w-water-st-...

Calculations: 

Asking Price not including Garage:

https://www.biggerpockets.com/calculators/shared/9...

Asking Price with garage:

https://www.biggerpockets.com/calculators/shared/9...

Asking with $50 per unit rent bump:

https://www.biggerpockets.com/calculators/shared/9...

So with all of that information above does the place seem reasonable? Should I Offer?!? I sometimes wonder if I am being to conservative on the Repairs, capex, and etc. Am I being a bit cautious? Do some of you buy with the intentions of meeting your goals by increasing rent or renting a garage as well? Or do you buy only at your number and consider increases a benefit? I would go down in price a bit to solidify my confidence but the realtor claims she will not entertain offers below asking price. 

I feel I have gained all the knowledge from the famous @Brandon Turner but I need a splash of confidence from the community to get me over the hump. 

Thanks!