All Forum Posts by: Tony Salemi

 Awesome analogy.  About how it feels too.  Just got to take a few foul balls until it stays right.

Trying to do a cash out refi on a duplex. To get to where I want to be, I'm looking for 75% LTV. Fannie/Freddie is 70%. It's like I'm asking for the moon. Even the local banks are no help. What are others finding?

Specifics:
Chicago far west suburbs
Current appraisal: $175K
Current mortgage: $90k
Credit score:800+
Liquid cash on hand: $75K
Personal DTI:<20%
Total DTI not including rental income:<30%

I would think this is a home run.

The first action item is to stop the source of the water intrusion.

Second is to open the wall together and decide if mold remediation is necessary.  If it is, call a professional and make the other owner pay the bill.  

If you allow the other owner to make the repairs, I would give him a timeline he needs to be finished. If not, call a professional and either get him to pay the bill, bring it to the HOA, or you'll have to take him to court.

I have a upper/lower duplex (I have owned for 2.5 years) and am looking at new tenants for the upper as the current tenant is moving out of state  My lower tenant is a long term tenant that keeps the property in show home condition at all times.  She is however a little "sensitive".  I wouldn't say a complainer, but she'll mention when the upstairs tenant had her TV too loud, or if the landscapers are a day or two late on a given week, or other little things.  

My best prospective tenant for the upper unit has felony from 10 years ago for possession of controlled substance.  That alone doesn't bother me since her record is clean since.  I am a very fast (and accurate) read of people. She has 2 jobs, car was immaculate, well spoken, etc.  She is heavily involved in AA which I respect greatly.  I believe she would make a decent tenant. 

Here's the questions:  She is a smoker.  My buildings are absolutely non-smoking and the lease indicates smoking indoors is grounds for eviction.  She says she only smokes outdoors and I believe her.  My concern is that she's on the common porch (especially in winter or rain) smoking and I'm getting complaints from the other tenant.  Or worse, she doesn't like it and moves. 

Also, a quick public records check shows an arrest from January for controlled substance she didn't mention.  was dismissed based on involvement with AA/treatment  (nothing between 2011 and 2020).  I believe I can't ask about an arrest, only about convictions.  But I'm a little disappointed she didn't mention it.  Why come clean about your past only to leave out this detail?

So what say you my trusted RE friends?  Give her a shot?

Quick update...I had contacted my attorney and asked him what my restrictions would be.  His advice was that I could not represent to anybody that I owned the property (until after closing) and I could not sign a lease or take a deposit until after closing.

So I listed it on Jan 19 and started setting up appointments for afternoon on the 26th since we closed that morning.  By the morning of the 26th, I had 5 appointments set among the leads that i pre-qualified.   By the next day I had 2 tenants ask to take it and I selected my best candidate.  We are scheduled to meet today to sign the lease.

So, I was able to get it rented in 8 days and have essentially zero vacancy to start.  I'm very happy with the results.

Thanks for everyone's help and advice.

To the OP.....

Maybe they were testing you.  Well, it looks like you passed.  And they failed.  Replace them.  Either unqualified or untrustworthy.  Both deal breakers.

 Understand I'm not trying to call you out here.  But then what are they doing to ear their money?  

If they don't know about the toilet-fine.  But

1. There was no leaking bathtub pipe at all.  Simple visual check since the tile was already missing.

2. A PM should have a basic understanding of costs that occur at many properties.  Landscapers charge $150 for "spring clean ups" that take more than an hour.  To pick up some litter and toss it shouldn't have been more than a $25 surcharge on their next maintenance.

3. This was on a turn over, so the PM should have been there to at least show the property or interview the tenants.  It didn't necessarily require additional trips.

4. The kitchen lights worked fine.  This doesn't require specialized skills or knowledge to determine.

I grew up not far from this property and know exactly the neighborhood it's in.  I currently live less than 30 minutes form it.  I don't know how deep you're in but you listing price in my opinion is right there.  Maybe just a hair on the high side.

Not that my opinion carries any weight.  Or that it would make you feel any better.

As others have mentioned, thanks for letting us know about these guys.  Sometimes I can't believe the crap we hear out there.

 ..............stomped and fermented!

 I disagree here.  It is the property manager's JOB to know what needed repair by getting in her car and driving over there.  If she is just hiring out a contractor to do the inspection, the owner could have picked a couple of contractors off the internet to drive over and give estimates.

What value is she (or her company) adding by taking a message and passing it on to the owner?  Handling these situations is why they collect a fee every month.

Stories like these have me more and more considering starting my own property management business....