All Forum Posts by: Theresa Harris

I'd also move to another person.  Contracts are binding, they just want the option to move at a moment's notice and I doubt any government employee would be expected to move that quickly.  Do you want to do weekly billing and how does the rate compare to what you'd get if you rented it normally? 

What type of property was it that you had two sets of tenants trash it in 4 years of renting?  The problem as Drew mentioned isn't the long term rental part, but either the property or tenant vetting.  Also walking away with $47K after paying for renos, fees, etc after 6 years isn't too bad.

I'd find some local STR operators and talk to them about their properties (good and bad).

I think the others have covered most of it.  

Location and quality-if the $100K home is in a bad area and in poor condition, avoid it.  On paper it may look great, but it will cost you more with lower quality tenants, more in damages and higher turnover and vacancy.  This also assumed the $400K place is in an average area, not a super high end part of the city.  

Appreciation is also important though harder to gauge. I know when I was looking at places, I got a less expensive place that was more of a student type rental given its location and the other option I was thinking of what maybe 75% more ($130K vs $225K), fast forward almost 10 years and the $225K is now selling at $325K while the $130K at $150K.

Diversifying-if you can get two good homes instead of one fancy home, get two.  It balances the risks better.

Property taxes and insurance are both important.  I'm in Canada, but the difference in rates between provinces is significant for both.  In AB a larger, but less expensive home than in BC has higher property taxes and insurance rates.

Probably.  The costs will get passed on to the consumers.

Why are you not able to get a loan to buy your next property rather than refinancing a home that is paid for to buy a new home with cash?  also what would the rates be on the new loan and what are the current rates on your mortgage?

If the only debt you have is your current mortgage and it is low interest rate, I'd get another mortgage for the new home.  As Alicia said, pay off any consumer debt that is higher interest first.

Tell him he can pay the higher rent or give notice. If he knows of other units in the area that are renting for less, then he's welcome to move there.

I'd find someone who can buy you out or ask her if she wants to buy your half.  While it wasn't signed, what did the agreement say would happen in this situation?

I'd talk to an attorney.  If they are running $200 over each month for utilities and don't have to pay them, I would not be renewing their lease.

normally the lease isn't valid unless you have a deposit in place.  I'd reach out to them tomorrow and say as you haven't heard from them despite repeated attempts to contact them, they haven't arranged for a time to meet and get the keys and you don't have a security deposit, you will consider the lease null and void.  

then start looking for a new tenant...and make sure you get the deposit within 24 hours of them signing the lease.