All Forum Posts by: Steve Ehrman

@Jonathan R McLaughlin. Thanks for the advice. It makes sense to look at the circumstances behind the numbers.

@Isaac S. Thanks for the reply. What would you consider the lowest credit score that you would consider, or do you have a lowest credit score?

@Juwane D Brown you can get a 30 year loan on a 4 plex. A company like lendinghome.com or Corevest would do a loan on a 4 plex.

We have units in the suburbs of Detroit. Lately the quality of tenant that we have had applying has been less than desired. We look for a 600 credit score, 3 X rent in income, no negative landlord reviews, etc.

Our current t lot of applicants have lower credit scores than expected. Any thoughts on how we should handle the situation?

We have a good tenant. She takes care of the place, watches out for other tenants, and has paid on time. Her company went OOB and stills owes employees some back pay.

The tenant has applied for rent assistance, but says she hasn't received anything yet. She informed us today that she doesn't have any $ for December or January.

We would like to keep her, but we have bills also. What can we do to help her?

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $335,000
Cash invested: $110,000

This is an 11 unit apartment building. These are garden style, and are fully occupied with long term tenants.

How did you find this deal and how did you negotiate it?

This was a deal on Craigslist.

How did you finance this deal?

Short term finance. We did a refi with a ten year term.

How did you add value to the deal?

Fixed a lot of stuff and did landscaping.

What was the outcome?

Income producing.

Lessons learned? Challenges?

Check previous inspection reports to make sure the city has kept the landlord honest

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $335,000
Cash invested: $110,000

This is an 11 unit apartment building. These are garden style, and are fully occupied with long term tenants.

How did you find this deal and how did you negotiate it?

This was a deal on Craigslist.

How did you finance this deal?

Short term finance. We did a refi with a ten year term.

How did you add value to the deal?

Fixed a lot of stuff and did landscaping.

What was the outcome?

Income producing.

Lessons learned? Challenges?

Check previous inspection reports to make sure the city has kept the landlord honest

We have just finished 2 evictions. This is a 4 plexus in a residential neighborhood.

The first was a bad tenant. She threatened other tenants and neighbors with violence. The police were called by neighbors several times for 3AM noise and fights. She was on amonth to month lease. We gave her a 30 day notice and gave extra time, 30 days, at her request. She refused to leave so we went the court route. We reached a consent judgement, but it the end of the 40 days she asked for extra time. We gave her the 15, and then the 3 days she asked for. We then got the writ signed by the judge and the bailiff posted with 24 hours notice. Still the tenant fought when the bailiff got there, claiming that she has no idea anything was happening. She called the bailiff a racist and threatened him. The police were called and she was forced to leave.

The second tenant turned out to be mentally ill. He stopped paying rent in Sept., and we began the eviction process. The tenant has gone down hill and started to call 911 at all times of the day and night. He threatened several people with a knife, even his own family who were there to help him. This eviction was finished today.

Nothing in the backgrounds of either if these tenants would have indicated we would have the problems that we did. I guess you live and learn.

@John Mocker Thanks for the heads up. We have connected with several AL house operators. Seems like a mixed bag. One has 7 houses and is very profitable, but took a few years to get there.

For an senior independent living house, with assistance for everyday tasks, there is no licensing or state inspections.

@Justice Jacobs. Yes there is a shortage of senior housing, especially in residential settings. We can do an assisted living home without being licensed. This would be for independent living seniors who want the convenience of meal prep, cleaning, laundry, etc. This doesn't get the high price that adult foster care facilities get but doesn't require 24 hour care. We also have homes for the aged that are also licensed.