All Forum Posts by: Warren Z.

$7k is worth it to me! That would pay for closing costs and some rehabs on your next property. The 1031 fee is minimal in comparison. @Dave Foster helped me with my reverse 1031 where I sold one property and purchased two last year. Highly recommend! 

Hello fellow BP members,

I hope to get some advice on a tenant situation I've been struggling with for the past year.

Tenant moved in a little over a year ago and signed a year lease. Since moving in, they've always paid their rent late (typically 25 days +) but I've kept them on since they made the case that their financial situation was temporary. I had never sent them an eviction letter to date as they would eventually pay rent including the associated late fees. 

I've also had to stay on them every month to maintain the yard work (kept getting HOA letters with heavy fines accruing every month. Luckily I was able to get multiple exceptions from the HOA and get it cleared). Basically, these tenants have been a real pain to deal with and have been slow to respond to communication.

I put them on a month to month lease this past December after having a chat with them. They said that their financial situation was coming to a resolution and  they promised to keep me in the loop and more responsive. Lo and behold, their payments continued to come in 25+ days late and while I was able to collect March rent, they failed to pay any of the late fees this time. 

I've reached out to them multiple times but they've since gone silent and I can't get a hold of them. I don't plan on pushing them out on the streets during this Corona crisis but need to get their attention and take some action. 

Technically speaking, since our contract is month to month, can I just ask them to move at the end of the month? 

If they stayed after I provided the move out notice will I then need to evict?

What action would you take next? 

Thank you in advance for checking out my post. Your advice would be greatly appreciated! 

I have a few properties in North Dallas TX and North Atlanta GA and recently bought one in Kansas City MO. (Btw, don't buy in North Dallas as property taxes will eat your cash flow). My friend bought in Kansas City two years ago and I liked the numbers she was getting. She referred me to her agent and I ended up picking up a 3/2.5 SFR this past November in an area NW of downtown, about a 30 minute commute. Completed reno in Dec but it took 4 months to get a tenant. We signed the lease just as Coronavirus started to get serious.

Property is in an A / B neighborhood with good schools. Bought it for $170K, put in $17k for a full interior / exterior refresh. My property manager comped $1,595 rent but we dropped it to $1,495 to get the traffic. Will be raising rent back to market on renewal (hopefully rent prices hold post Corona).

Some thoughts: Unlike other states, KS city doesn't use the MLS to post rentals so you will likely need to get a property manager. On a recent check, I saw that population and job growth for KS city is below average when compared to other metros of its size. I probably would not have invested here had I went off that data alone but my friend was getting decent cash flow and her agent seemed knowledgeable so I went for it. If I can find a better deal in the coming year, I'd pick up another one but I'm now looking at Jacksonville, Orlando and Charlotte as well.

Feel free to DM me if you want to connect or speak with my KS city contacts! 

@John Mocker  appreciate the quick reply.. do you have any recommendations for companies either separate or combined? 

@Richard Jumonville That's a really good point as well!

@Justin Tahilramani did you end up finding a good commercial insurance company? I'm also in need of one that can handle multiple states.

Hey Guys!

I'm trying to find a commercial insurance policy for 5 SFRs I have in GA, TX and KS.  

I was on with Amica but they said they don't do over a certain amount of properties and so I switched to State Farm / Foremost. I've recently heard bad things about them not paying claims from a fellow BP member and looking to make a switch to another carrier that is more commercial oriented. 

Does anyone have any suggestions for commercial insurance companies / brokers that do multi state and aren't of the big box type of companies? Ideally I'd like to deal with one agent that can do nationwide.

I like that you posted some examples @Phil Mcnally.  I'm also looking for a $500k property that fits the 1% rule or more specifically cap rate of 7-8%+.  My reasons are a bit different; I need to 1031 and closing on one property versus multiple seems less stressful for my first exchange.  

Over the last six months, I've been running numbers on fourplex and duplex combos in the midwest and I've found that the COC return is not a whole lot better (sometimes lower) than what I can get on a SFR managed by myself. It seems that commercial is the way to go to get better economies of scale but I'm not sure if I'm ready for that yet. Let me know if you find anything of interest, I'll do the same.

Property in Orange County is not nearly as expensive as the Bay area but RE prices are ridiculous in comparison to other states. Had I not purchased long ago i'd be renting and putting all my monies into out of state properties as well. 

As for your first rental congrats! I also purchased in the Dallas area but am now looking for greener pastures due to high taxes and insurance costs. Would love to compare notes on other areas you might be looking at.  Message me if you're interested.

I actually manage all three out of state properties on my own - my net income would be even less with a PM! If I had more units it might be tough to manage myself. If you get quality tenants that take care of the unit then it's not too much hassle as long as you have a good agent to handle turnovers and a dependable handyman.  

I had considered Austin but heard that it's even more saturated than the  surrounding areas of Dallas so I avoided it all together. Definitely want to visit though.

Out of state investor looking to get out of Dallas,TX area and into another state, most likely NC. Let me know what you find and we can compare notes. Charlotte, Raleigh, Durham are my target areas for now and I’m flying out in the next 30 days to check it out. Also considering other states.

My Experience in TX: Bought two SFR north of Dallas in McKinney two years ago. Love the area! Lots of companies headquartered there = lots of jobs, great tenants, great schools, great appreciation play - BUT taxes at 2.4% and insurance eats up almost 3 months' worth of income! I knew it was going to be high going in but wish I had considered more carefully.