All Forum Posts by: Tim Bee

Thanks for your help.  I decided to wipe their debt and give them a second try.  We'll see what happens.  I hate evictions because the turn over is always expensive.  But if the debt gets up there again (1-2 grand) then they are gettin booted.  

Evictions cost about $1100 and then about a month of no rent and about 5 grand in rehab seems to be pretty standard from my experience.  The tenant is old and confused and thought they paid about 6 months ago but didn't.  They always pay on time besides that.  So if I don't wipe their debt I will be down about another couple grand over the next 12 months.  So the math is telling me to wipe their debt

Maybe the owner should delete the tenant's debt?  Might make more sense.  I mean the alrlternative is to evict and then sue.  I guess the owner would have to weight the cost vs benefit.

The tenants debt is about $1600 and goes up by 10% every month because the property manager keeps the late fee.  Basically I am loosing 10% a month so it's like I (the owner) am paying the late fee.  I know I could evict and then sue bla bla bla....I probably would never get my money even if I win.  So my question:

Maybe just tell the property management company to waive the tenant's debt so I can finally stop having the late fee taken out every month?  If the tenant ever builds up another $500 or so in debt then I would evict.  Thoughts?

Is it worth it to tell the property manager to just delete the tenant's debt so the owner doesn't lose out on the late fee?

 Just find the most crime ridden,  undesirable area with frigid storms in the winter and mosquitos the size of small birds in the summer and invest there.  Just make sure you have plenty saved up in your savings to make up for missed rent, tenant caused vandalism and neglect and you'll be good.  

 Yea so you'd be under AB1482 which will control how much you can raise your rent.  Thanks Newsome

 Great links!

This is what I have heard too. Lawyers can usually poke holes in the LLC and get access to sue the actual person. I have a 5Mil commercial umbrella for all my properties and kept the properties in my own name. ALSO in CA be careful with having a LLCs because SB 567 will impose rent control on corporations and most LLCs. The only properties still not under rent control by the state are SFRs that are owned by a real person. Duplexes / ADUs and up are under state wide rent control and are also subject to newer tenant protection and strict eviction rules. Gotta love communism.

I'd probably only buy STRs if the math worked out for them to be profitable under a LTR plan (1% rule).  Gotta be prepared for that in CA going forward.