All Forum Posts by: Tyler Bobo

I appreciate all the input, looks like the consensus is that it's not worth the effort.  
When the tenant is local, I used to let it go if it wasn't much if I didn't think I would be able to collect.  My thinking was to not chase bad money with good like Dennis said.  I've come around on my thinking recently, figuring that if 1 out of 3 or so pay that should cover my court costs, but more than that, if they have a small claims on their record future landlords can use that when considering applications.  If everyone went the extra effort to do that then tenant screening would be a tad easier:)

Tenant left state.  I have their address, and they owe me about $2500 after damages and back rent.  I'm in Alaska, and will be sending her the security deposit statement tomorrow.  If they don't pay I can sue them in small claims and get a judgement, will probably cost a few hundred dollars in court costs.  Is this worth doing?  I've never tried collecting from someone in a different state:/

Hard to tell without knowing the personality of the decision makers.  I would say, if you plan to use a Realtor and you talk to them yourself first, definitely mention you'll be using a Realtor and how they'll be paid. So if you wanted the sellers to pay that, sell it like they'll be saving 3% by paying 3 instead of 6.  As a Realtor, I always recommend using one, just make sure they know from the beginning.  

A great way to talk to someone at the church would probably be by getting a warm introduction by a member of the congregation, maybe one of the neighbors you spoke to?  You're more likely to get a good conversation in without getting shot down if you come in with a recommendation from old grandma smith who never misses a service:)

What is a design studio credit or cost? I'm unfamiliar with that term?

If you want to see the monthly income of 3x the rental amount (or whatever your standards happen to be) do you ask what they owe and have monthly payments on?  Obviously if their income is already "spoken for" and they're stretched too thin they'll likely run into trouble.  I haven't previously considered this much, yet I've been burned before.  How do you handle high Debt to Income?

Hi Nick, I don't off hand, there's going to be different programs offered for different types of properties and from different banks/institutions.  I like the idea of a line of credit because I can draw what I want/need when I need it, but the interest can fluctuate and be more expensive a few years out, or sooner, as opposed to locking in a good deal.  Check with a few local small banks and maybe even a bigger bank to see what you can get.

Ask a local Realtor.  Most people on BP are not in LA!  Good Realtors know lots of contractors, inspectors, etc.

If you like the building and it's a good investment then keep it.  But to have $400k worth of equity not working for you doesn't do any good. I mean, you did work for that money in the first place probably right?  I would take a line of credit or a regular refi (check rates and terms with a solid lender to decide which will work best for you) and keep the building.   

Leases create a landlord tenant relationships, granting certain rights and responsibilities to both parties (depending on the state and cities they're in) and in Short Term rentals that's not what you want at all.  This will vary from one locale to the next so check maybe with a property manager where you are, but short term rentals work more like a BnB or hotels: if you have someone who won't leave you can kick them out easier than a tenant that you'd have to go through the eviction process with.  So, I'm not sure you actually want a lease?  Maybe set up an account with airBNB and go that route.

SBA does small business loans, so do local banks.  I'd talk to a local commercial Realtor and see what the building would be worth by itself if the business is of low value.  If you can find an agent that specializes in businesses in your area that agent can help you value the business too with the building.  

Like buying a good real estate investment, I would want it to make a reasonable return on my money even if I was paying management to run it.  If you're only making money while you're running it then you just bought a job.  Sounds like if it's not being run well, if you can get it at a good price and then improve the business substantially you could make a good profit at resale or good cashflow for the long haul.

As a Realtor, I've listed small businesses before and one thing I've ran into often that you might run into here as well, especially if it's not being maintained well, is that you may have a hard time getting "real" numbers from the seller.  Small business owners often have a hard time keeping accurate books while they're working so hard just keeping the doors open, making valuing it quite challenging.  Good luck!