All Forum Posts by: Steven Cherry

@Mark H.  Thanks Mark.  If they refuse to pay rent and I file for eviction now, it probably won’t go through until after they move out, right?  If it does before, they may damage the place more so on the way out?  Just trying to determine best approach to take now if they continue to delay paying rent this last month.

Thanks everyone!  This is what the tenant said, “Just keep the security deposit, that will be more than the rent and late fee together.”  The issue with this is if there is more damage than the remaining few hundred dollars of security.  If they won’t pay now and give that as an only option, would you immediately file for eviction now before they move out at the end of the month?

Hi everyone.  I have a tenant that’s supposed to move out at the end of this month.  Rent was due on the 1st with a grace period until to 5th.  Then a late fee hits and he lease says I would start eviction if not all received by the 10th.  I know that I should try to get rent and not take it from security at the end, being that if there is a ton of damage, security may not cover it all.  I believe eviction takes some time and costs a bit.  Would it be worth filing on the 11th if they are supposed to be leaving the 28th?  They asked if they can stay a couple extra days after the 28th and I said no (I plan to touch up and rent ASAP).  Between not paying rent, potential damage, and potential for them to stay in there a few extra days, I’m a little worried about not taking the right action now to cover myself.  Any advice?  Thanks!

@Ned Carey The lender will only allow me to take out 70% of the ARV. So there will be 30% equity still in the property. Is this that risky?

Hi all,

Purchased my first duplex just over 10 months ago.  Put some work into it with it rented the whole time and thinking about doing a cash-out refinance for my next investment property.  In contract on a property for myself at the moment so do not have enough cash for another rental.  I got in at a lower rate on the duplex 10 months ago and if I refinance, I’ll lock in almost 100bps higher rate (I believe).  The refinance would increase the mortgage every month, but I have room to work with on the property so it would still be running cash flow positive.  My question is, do you guys cash out and put into the next property ASAP as long as he property is still enough in the green for you?  If the mortgage on the first property goes up at a higher amount than you are cash flowing on your next rental (with the cash out money), is it still worth moving forward?  Or is that where you draw the line?  Maybe you don’t care too much because it’s another property for potential appreciation under your belt that the tenants are paying off?  Please let me know your thoughts!  Much appreciated.

-Steve

Hi all!  I’m looking at purchasing a flip.  Purchased my first rental about a year ago but no good experience with a fix n flip.  I want to purchase this property, but need the most efficient way of estimating renovations.  What do you guys do for this?  Do you have a renovation company come out before purchasing, go over what you want done, and get an estimate?  Do you pick line item by line item yourself, hoping you captured everything?

Hi all.  I am a relatively new landlord and have a question.  The storm door is jammed on one of my rentals and will not open at all.  The tenant wants this replaced immediately (I also know that they wanted a new storm door as it was old).  The tenant took the screen out and needs to use a credit card to unlock the front door, since the storm door frame is in the way of the front door keyhole.  Since he was making it such an urgent issue, I mentioned that I will come tonight and remove the screen door entirely to solve the problem and fix/replace in the next few days.  He wants a new storm door immediately and was not okay with that.  My question is:  does a storm door need to be replaced if it was there when the tenant moved in?  If so, how long do you have to replace it?  Thanks in advance!

I own one other duplex as an investment property.  This will be an owner-occupied duplex.  I want conventional because I have good credit and want better terms.  The lowest allowed for a conventional I thought was 15% down, which is posted on Fannie Mae's website.  Are you saying that isn't the case?

Thanks for the article!  What's the best way to find a lender in NJ that will do this without running your credit at each?  Just cold calling each one around?

Hey all. I am interested in purchasing a duplex in NJ to live in and rent out the other unit. My mortgage broker says that if I want to do a conventional loan, I have to put 20% down. However, when I look on Fannie Mae's website (https://www.fanniemae.com/content/eligibility_information/eligibility-matrix.pdf), it shows a minimum down payment of 15% (85% LTV) for 2-unit conventional loans. I asked my broker about this and he said that no private companies will offer mortgage insurance if it's under 20% down for conventional. Is this all true? I don't understand why Fannie Mae's guidelines would be 15% minimum down for 2-unit, but then it's impossible to get the required mortgage insurance. Can someone please help? Thanks!