All Forum Posts by: Taylor I.

Quote from @Jay Hinrichs:

Quote from @Steve K.:

Quote from @Taylor I.:

His plan is to give all the tenants 30 days notice to raise the rent more than 10% to get to positive and if the tenants don’t agree, they’ll need to move out and he’ll find new tenants who are willing to pay. I personally believe I set the rent at a pretty reasonable price and not sure if the rents he’s proposing will work but that’s for him to decide. I could also do the same myself but I’d prefer not to look for new tenants since the current ones have been so great. We also plan to have a performance deed that will help protect me in the event he defaults and the property will be handed back to me.

Are the tenants all on M2M leases then? Seems like a risky plan and if there is that much upside on the rent why not just adjust the rent yourself (doesn't need to be immediately if you're that afraid of losing tenants, just do it a little more tactfully, maybe make some small improvements or give them some more time to make it more agreeable) and keep the property? I wouldn't want to sell using sub-to personally. 

you only want to consider this on a wrap so that your still ALWAYS making your mortgage payments yourself and the buyer is paying you.  the Reason is if you do a sub too .. the buyer can default and it will take you  a few months to figure it out by then your have mortgage lates on your credit its hard to take the property back on the wrap you can easily foreclose etc.. really depends on what your credit score is worth to you .. ??? not much then go for it.. very important then you need to wrap it and stay in control.

Would you consider the wrap even if you have high level trust in the individual? Or is there another way to structure the deal so that there is minimal delay in the event of a default to have the property transferred back to you (i.e. additional clause in the performance deed or some other contract, etc.)?

Quote from @Steve K.:

Quote from @Taylor I.:

His plan is to give all the tenants 30 days notice to raise the rent more than 10% to get to positive and if the tenants don’t agree, they’ll need to move out and he’ll find new tenants who are willing to pay. I personally believe I set the rent at a pretty reasonable price and not sure if the rents he’s proposing will work but that’s for him to decide. I could also do the same myself but I’d prefer not to look for new tenants since the current ones have been so great. We also plan to have a performance deed that will help protect me in the event he defaults and the property will be handed back to me.

Are the tenants all on M2M leases then? Seems like a risky plan and if there is that much upside on the rent why not just adjust the rent yourself (doesn't need to be immediately if you're that afraid of losing tenants, just do it a little more tactfully, maybe make some small improvements or give them some more time to make it more agreeable) and keep the property? I wouldn't want to sell using sub-to personally. 

No the tenants are not m2m, everyone's lease will be up in the 6 months or so. I could adjust the rent but I personally am burnt out from dealing with everything related to this property. It has been one thing after another so I think that's also a big factor in my decision here. While my tenants have been great, dealing with all the issues and repairs that have come up have been a real headache. So I am trying to figure out if it's possible for me to get out of this with my investment intact in the least painless way possible.

His plan is to give all the tenants 30 days notice to raise the rent more than 10% to get to positive and if the tenants don’t agree, they’ll need to move out and he’ll find new tenants who are willing to pay. I personally believe I set the rent at a pretty reasonable price and not sure if the rents he’s proposing will work but that’s for him to decide. I could also do the same myself but I’d prefer not to look for new tenants since the current ones have been so great. We also plan to have a performance deed that will help protect me in the event he defaults and the property will be handed back to me.

Hello, I have a buyer interested in my property that I have had for almost 2 year that is not cash flowing and I am losing money on ($200-300/month easy). The current equity in the property is around ~$70k and I have invested ~$46k of my own money (down payment + repairs/bills, etc.) thus far. The buyer is willing to offer $50k for the property as part of a seller financing deal with a chunk paid at the beginning and the remaining amount spread across 5 years and after which, the buyer will refinance and take over the mortgage. I am not very familiar with the terms and details of a seller financing deals but given the property is not cash flowing, I think it's in my best interest to get at least my initial investment back. I could sell the property on the market but I think after fees and taxes, I would be at a loss. The buyer will buy the property as part of his LLC and the LLC will be liable. Is this a good deal? What should be some things I need to be aware of and consider prior to signing any sort of contracts? Thanks in advance!

Thank you @Ben Firstenberg for your response. How did you deal with your situation with the higher expenses? Did you raise the rent as well or try out another tactic?

Hi everyone, new to BG! I recently bought a property to house hack and and to be closer to my work. However, after the closing, my monthly expenses ended up being higher than I originally anticipated (this was before I discovered BG) and the property currently does not cash flow. I plan to refinance once the rates go down so that should help but in the meantime, what do people recommend for increasing the cash flow? Between my roommates and me, we all pay around the same amount per month. Not awful but definitely not what one would consider a good deal. And I believe my roommates plan to renew their lease next year so I thought about potentially raising the rent by a couple of %. My only concern with this is that if I raise it too much, it'll spook my tenants and they'll look elsewhere given there are pretty competitive rates for other houses and apartments in the area. I'm also considering charging a monthly fee per car for the use of the garage (it's a two car garage). I'm not sure what else I could do so any helpful tips or insight would be much appreciated!