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All Forum Posts by: Tracy Ross

Tracy Ross has started 3 posts and replied 75 times.

Quote from @Rehj Hoeffner:

I've got these two young kids that moved in and signed a 4 year lease. We had just completely remodeled the unit, new bathrooms, new kitchen cabinets, granite countertop, new microwave and fridge, sinks, faucets, plumbing (left the oven, washer and dryer from previous), new flooring throughout, fresh paint.

It's one thing after another. The disposal kept falling under the sink..I repaired immediately. 

Supposedly the washer went out and the maintenance man came out and said the dryer was on its last leg as well. I replaced them with brand new units. 

There was a smell from the return air that we went round and round about. Finally after 2 service calls and $300 later, it was a stopped up kitchen sink that they didn't tell the A/C guy about the gurgling in the kitchen when the dishwasher ran. 

The ceiling in the garage started sagging and they were afraid it would fall on their car, so I immediately replaced the entire double car garage ceiling.

The knob on the oven popped off and the whole top of the stove shifted somehow and it wouldn't go back on in order to turn off the burner. We had contemplated replacing the oven when we remodeled the house, so I purchased a brand new oven that I let HER pick out!

Then I find out she's running a bakery out of the house. Texas law is a little fuzzy about cottage industries, and the lease isn't specific about running a business from the home. I'm not happy about clients coming to my rent house and increasing my opportunities of liability. 

They never pay their rent on time. One month they were extremely late, past the late payment fee before she told me she had twins and one of them died. I wanted so bad to be compassionate about it saying don't worry, pay when you can, but I knew if I let her get behind, she'd never catch up. 

Then she had ants which she panicked about and called out an exterminator without my knowledge. They turned out to be Carpenter Ants which is my responsibility, but she wanted me to reimburse her for the $200 emergency call, however he did not do a full treatment so I had to have my exterminator come back out for another $300.  

September's rent is still not paid. Last night I got a text that the AC wasn't working. They replaced the filter, but still nothing. I called and made an appointment for today for the maintenance man. She texts 2 hours later and wants to know if they have an emergency number she can call because heat increases the likelihood of SIDS in babies!?!

I told her no, he'll he there in the morning!  AC repair just left and told me the tenants are running a humidifier in the house due to sick baby and the AC unit, which is a complete brand new system right before they moved in 3 years ago, is not made to have a humidifier run and it's freezing up the unit as it is basically working against the AC and clogging the filter.  Cost me $100 service call on a rental unit that runs a very very slim margin of profit to begin with.  I've not turned a profit in the 3 years they've been there. 

What do you do with these types of tenants who pay late and cost you money?  We have 7 rental units on the same street as we live, so they are basically our neighbors, but we strictly don't socialize with any of our tenants. We try to be very good landlords and fix anything that arrises immediately and usually go above and beyond. 

I'm really irritated with them this morning!  Can I legally add this bill to their past due September rent? Ideas or suggestions?


 Wowza! That's a lot. First of all I would say that the first lesson is don't ever sign a 4 year lease again. Sounds like some of this is tenant problem and some is just bad timing with Maitenance and Repairs. 

It seems like the tenants aren't happy or feeling healthy living in the home. Would you be able to work out a deal for them to move? It might even be worth it to you to give them cash for keys. If you offered for them to be able to break their lease and get their security deposit back changing to a different tenant might do the trick. 

Post: So what's holding you back?

Tracy RossPosted
  • Posts 75
  • Votes 73

I love this question! And it hit me right in the feels. 

Nothing. There is a way to work through any excuses I give myself (which is a lot) but the truth is- if there is a will, there is a way. I heard another interesting quote the other day "Don't wait to buy real estate- buy real estate and wait" 

@Courtney Kelly this is exactly what I ended up doing. I live in Idaho and bought an oceanfront condo on the Oregon Coast because that's where I like to vacation. As a real estate agent I usually pay hefty taxes but this year we may be getting money back because of that condo. We write off everything and every time we go we fix something. Last time we went we switched out the queen bed for a king. It has been amazing! You can write off the milage on your car to get there, gas, meals, furniture, property management expenses, maintenance and depreciation. 

Also- because this STR is in a vacation destination we stay about 85% booked or more. We even had a midterm renter for the whole month of December (which is usually seasonally slow there).

100% Call an Attorney! Run through the whole scenario with them. They may find a situation here where the sellers were in breach of contract and force them into the sale.  If indeed the extension was because of the sellers negligence I think you would have a win. 

Post: Buyers market or housing CRASH?

Tracy RossPosted
  • Posts 75
  • Votes 73

I'm here in Boise and it's one of those markets that has been hit harder by the "correction" But our market is seeing an uptick in buyers and we still have fairly low inventory. Anything under the $300k price point is getting picked off right now. 

I think we may have more inventory come spring, but I think we are going to flow through this year with a fairly balanced market. I don't foresee a "crash" 

@Steven Alvarado The one thing that stuck out to me is the fact that you will be out of town. I had this same experience with a townhome I owned in Portland. I started travel nursing and rented it out. I wasn't cash flowing at all but I sold it after 4 years and made $150k from it. So don't worry too much about cash flow for now- it's worth it as a long term hold. 

Also, have you thought about property management? I know it's an added expense but with you not being close to the rental, a property management company is there for any little Maitenance items that come up, or to screen and place new tenants. Unless you have a great network of handymen, plumbers, etc. It also takes more off your plate to focus on other things. Just a thought!

Post: Hesitancy to Invest - is it Morally Right?

Tracy RossPosted
  • Posts 75
  • Votes 73

I hear you on this. I have had the same moral quandary. I come from Portland, Oregon originally and I was priced out of my home market in 2011. Investors were buying all the affordable homes. 

One thing thing that has helped me with this though is the thought that if private investors weren't providing rental housing for the masses, then the government would have to. And we know what government housing/projects are like. I think we are actually doing a service to renters by providing really nice/well taken care of housing. It still doesn't change the issue of buying these houses from under first time homebuyers and raising the market. My only other takeaway on that is I am an agent in the Boise, ID area and a majority of my buyers are first-timers. We always find something great, even in competition with investors. 

So in conclusion my advice is don't feel badly about it. Just create great sustainable housing for renters and knowing you are doing a better service than affordable government housing would. 

Hi,

My stepson is 20 years old living in Southern California. He has been saving for some time and wants to buy a condo or some type of property to get started on his real estate journey. I am an agent in Idaho where we have great first time homebuyer programs offering down payment assistance. I was wondering if California has any programs that offer help to this group? 

Thanks in advance! 

Kenny I completely agree! 

I'm in the Boise market which was one of the highest in year over year growth so we are seeing declines right now. And with holidays and the weather I think a lot of people are waiting to list until spring. I think we may have a flood of inventory on the market here in spring and see prices continue to decline. But I also believe inflation will continue to decline and rates will lower at the end of 2023 and we will see prices start to stabilize. I bought an STR last year at 6.125% and I can't WAIT to refinance that baby!! :)