All Forum Posts by: Tom Valichka

@Jason Hirko excellent idea Jason. I don't have PM in place being this is my only rental and my first at that. I can't recall having anything of that nature in my lease. I'll need to get that into motion for the next lease for sure. Thanks for the heads up!! 

Any other suggestions anyone??

@Brad Carrier thats what i was thinking. if i can't prove that actually happened what should I do? I can't just automatically deduct the plumbing charges/damage from the deposit can i? The plumber ended up not even charging me cause nothing was wrong thankfully and there is no damage (at the moment). In the future what if there was. is that then reasoning to take from the deposit?

Hey BP, I am curious if anyone else has ran into a situation like the one i encountered recently with my renters in a single family home i have near Atlanta. Of course, when i go out of time i get a frantic call from my renters saying there is a good plumbing leak coming from under the sink, water is on the kitchen floor and leaking into the basement. Instantly, i call my plumber and line him up to go out there the next day. Being out of town on business, i could not make it there myself.

My plumber gets to the home and does everything he can think of to fix the problem. Interestingly enough, he calls me back and there is NOTHING wrong. He said he ran all the sinks, dishwasher, flushed every toilet.  An hour later, there was NO LEAK. It has not rained, there was no intrusions from the roof, sidewalls, basement, anything.  He told me he could see in the basement where there had been some water, but it had all been cleaned up or evaporated (unfinished basement thankfully). 

My question to you all is, there was obviously water there at some point, but if there was no leak what happened? Did they spill something? Did they overflow the sink on accident and tell me it was a plumbing issue so they wouldn't pay damages? Did they over flow the dishwasher?  This has been the first incident like this with these folks. Is this going to be a recurring thing? Anyone ever deal with these situations where the renters may be trying to scam their way out of paying damages?  Or am i overreacting and should brush it under the rug?

Thanks for the help in advance!

Tom

@Robin Boyer transfer to an LLC? I am doing well. Currently in a holding pattern until my w2 comes in from this year so i can borrow more!! I have my eye on some lakefront I plan to live and flip beginning of 2018. How about you?

@Robin Boyer most excellent!! whats the next step??? Vacation rental??

@Margaret B. @Jeffrey Long @Susanna B. I agree with these guys. a little cabin in the woods wont have high fees or HOA's to strip cash flow.

@Brad E.  what is the amount of difference between the 25% down and 20%.  Take the cash amount for example ($10,000), then divide it by your monthly cash flow ($300). The number you are left with (33.3) will be the number of months you are paid back your initial investment of that extra $10k on the down payment.

@Ryan Dao @Jonathan R. Ryan, jonathan gave you some great pointers. I am originally from outside of Philly so i know the are. I just completed my first deal down in North Atlanta and it was a SFR. I chose that because 1. it was my first try and 2. multifamily is out of my price range here. I was able to fix it up a bit my own and it rented in out in 2 weeks and hes been great thus far. You can bring higher rents on SFR (in my area) and offer other amenities (a backyard). Then of course exit strategy would be to sell to a regular buyer instead of an investor.

However, if you can grab a great deal on a duplex go for it. rent it all out or live in one side. Whatever makes the most sense for you!

@Brad E.  @Jason G.  agreed with Jason. Also Brad run #'s on how long it would take you to cash flow back that extra 5% (20% vs 25% down payment) at that 4.8 rate. PERSONALLY, I rather have more of my cash in my pocket for other obligations as long as you are still making a good cash flow.  Also, getting technical, but if this is a long term play, and inflation starts rising you want to be borrowing more of the banks money than infusing your own money.  its a good hedge play.

@Gabriel Miller can you ask to see the bank account of the renters to verify the money is coming out of their accounts for rent? (in my lease my rental applications i ask to see bank statements)  Or even the sellers bank account too? Do they do cash? Money order?  Has the seller disclosed anything or does he even want to?  Can you talk to the renter to see if they want to agree to a lease once you purchase? Sorry if these are questions you've already went through.