All Forum Posts by: Tracey Wittke

I bought a property last October in a small town in Northern MI. The property itself has 3 units on it. The owner/landlord that I bought the property from was renting them out way below market value with no security  deposits or written contracts. I inherited two of the renters. One I had to double the rent and he also gives me so much monthly toward a security deposit , done deal. However my other tenant who is on "fixed income", I  initially raised the rent $50/month and she also had to cut all the grass all summer. I told her next year, now, I will be raising her unit to market value. She was paying $450 when I bought it, I raised it to $500. With some paint and new flooring I could easily get $750.00.

So here we are a year later. Her son moved in with her along with his dog. I sent her a letter stating that her rent will be going up (like I told her it would last year) to $625 month. She has always paid on time. 

She sent me a response letter stating that she cant afford the $625 living on SS and that her son has moved out and to please work with her while she tries to find a new place.

 I watch the market and know that she will never find another place to rent less the $625/month that allows animals in the area.

I am looking for thoughts/advice on what others would do in this situation.

Update****

Thank you for all your responses. 

I wanted to give you an update. I did and said nothing and it was paid.

This tenant lives on social security, I inherited her when I bought the compound last October, she has been there going on 11 years, smoker inside home . Her home is heated with propane, and unless you live in  Northern MI, you may not know that last winter was a humdinger. She has always paid rent on time. So I came to a conclusion she probably only makes minimum payments to electric during the winter in order to keep her propane tank filled. Then catches up in the spring on the electric bill which by this time is ready to get shut-off. 

I thought if I evicted her it would cost me at least 5K to go in there , remodel to get rid of 11 years worth of cigarette smoke. Being my first year and acquiring 6 properties , I need a break of money going out:-)

Anyway, lesson learned here. Thanks for all the advice!

I am from MI and am signed up through Consumers Energy's " landlord notification" , that meaning if my tenant ever is getting ready for a shut off I will get notified. Well I got notified today. She has 1 week to pay close to $300 plus an additional $190 if she wants it back on. It is spring/summer time in Michigan so nothing is going to freeze but I am wondering how you all handle these situations?

Justin,

Traverse City real estate is VERY expensive, however so are the rental rates. Most surrounding areas have less stringent rules when it comes to rental law. Look for something in Elk Rapids, Torch Lake Area, Shanty Creek landlords seem to do well. All my rentals are within 45 minutes of Traverse, but most are long term. I live in Traverse and can not justify paying what they want for their real estate for rental purposes . If  I can help you in any other way let me know! Best of luck! 

I am in the midst of purchasing 2 older mobile homes on a land contract. It's a long story so to put it in a nut shell...

Last year I bought three units across the street from two mobile homes. My three units consists of a SFH, above garage apartment, and a mobile home. The current owner of the mobile homes has long since moved to another state, leaving behind her 18 year old son that occupies one of the trailers and whomever she can get in the other trailer. As you can imagine my tenants are at times not happy with all the "rif-raf" .

She, the current owner, has finally decided after many failed attempts on my part, she will let me assume her land contract under the same person that I bought my three units from. However, one set of tenants are refusing to leave unless the "law" throws them out. I am dealing with the women's brother who has been her property manager and really doesn't know or want to know anything about legalities and the eviction process. 

He gave them a Notice to Quit a week ago, in MI they have 30 days. In my PA I stated that I will not sign on the property until both trailers a vacated. I know for a fact they will not be out in 30 days. Any Advice?

I just became a long-term landlord last fall. I have a vacation property that I rent but that is a different set of problems:-) I inherited two tenants on my three unit...I will NEVER do that again unless it involves ALOT of addendums. 

They both smoke and have dogs , I knew that going in, but they have been in these units for 10 years . Really until they move out the damage is done. They do pay on time. 

I just went on my quarterly walk-through...one of the inherited tenants just complained about everything the entire time and the other one now has her grown son and pit bull living with her. Everything is fixable...  

However, no one likes change and these tenants don't , needless to say its been interesting and they keep me on my toes!

Last Fall I purchased my first three unit property. There was three offers on it, mine was going to be the only one that could do cash , I went cash. 

So.... now I am ready to buy my next. Im currently looking at a fourplex. I have met with both a commercial and residential mortgage lender that was referred to me by my realtor. I plan on investing in multi-units and lakefronts ( Northern MI) I currently have one of each. I want to do a HELOC on my 3 unit for the down payment on the fourplex, should I decide to buy it.

I received a call from my residential mortgage person letting me know I was approved for well over what this fourplex is  listed for. When I mentioned being interested in this property  the fourplex , she said that I would have to deal with my commercial lender ( he is still working on my file). They may be able to do a duplex but never anything bigger. I was caught off guard because everything I have read was that a fourplex could be financed conventionally with a residential lender. Can one of you pros break it down for me ? What am I not understanding? :-)