All Forum Posts by: Zachary Corum

Nothing.  Although not surprised its one building and property managers are hard to find in Scranton/WB area.

I would venture to guess he is doing that for tax purposes?  Either way, I would go for it, with some caveats.  If I were to enter into a deal such as this I would draft a contract that spelled out the payment schedule that both parties would sign.  I would also move the money into a separate account and provide receipts for each yearly installment.

Well if you have a single family home it should not be too much of a problem.  The hardest part is scheduling a time with your tenants that also works for your plumber or electrician etc.  If you know you have a plumbing problem why not just resolve it before you rent it out.  It will save you lots of time and trouble later on when your tenant has to experience the issue.

If you want to hold on to the property in my opininon you have two choices.

1. Try for a cash out refinance with a local bank. You may need to wait a litle longer due to your high LTV but some lenders will work with you at 80% - 75%. You may need to shop around to get a good rate. If you get the cash out refinance you can buy another duplex and do the same thing again esentially using the BRRR strategy.

2. Move out and rent the second unit until you have paid down the mortagate a little more and then either try for a HELOC or a Cash out refinance mortgage.

Hope this helps!

The way we have always handled a situation that requires a co-signer is to vet them as if they will be living there with the tenant.  Full application, background and credit check as well as following up with any references, etc.  If this spooks the applicant we know to move on.

I have a cash flowing Tri-Plex in Plymouth, Pa and am looking for a Property Manager that could take over the day-to-day.  The units are fully rented with great tenants but when things break I do not have the time to dedicate in the coordination of managing the contractors and the tenants time. It would also free me up to do the things I love such as buying more properties. Hopefully having only three units is not a complete turn off to a potential manager.

Have any leads hit me up!

Since this is your first purchase it would be advisable to read the Pennsylvania Landlord and Tenant Act of 1951 Link

To expand what @Thomas Page said about waiting for the lease to expire here is the text from the Act that I believe is relevant.

With that being said I would request the lease from the current landlord before purchasing.  If there is no lease then the tenants are on an assumed month to month lease and would require a 60 day notice before you can raise the rent above 4%.

Also if you are planning on raising the rent over $500 don't expect those tenants to stay around very long.  If they are elderly they are most likely on a fixed income and won't have the means to pay your new rent and subsequent late fee's etc.

Your best case scenario would be the tenants are on a month to month lease, you notify them of the upcoming rent increase and they leave on their own in 60 days.  Otherwise if there is a lease in place you will not be able to realize your "best case scenario" until that lease term is up so plan accordingly.

I agree with @Terry Lao, your best bet is to get rid of the inherited tenant with minimal property damage and loss as you can.  Use this opportunity to place a tenant that you screened and understands the lease that you are providing.  Although it is tough to have this happen early on inherited tenants with the previous landlords lease is worse in the long run in my opinion.