Should I Manage 10 Unit Building Myself?

Comments(16)

• 
  pmatheson19th June, 2007

  Assuming your credit is OK, and your properties are increasing in value, you need to wait til a property has appreciated to the point where you can replace your existing loans with new 80% loans with friendlier terms.
  
  (We have so much competition to place a new loan, many lenders will charge very low to no closing costs.)
  
  I think when you get more equity, you need to contact a bunch of loan brokers and "let them compete against each other"!

• 
  rglover5489th June, 2007

  Wow, what a horrible financing position. How could you get so many ARMs, Im surprised you are only getting quoted 18k, I would think the financing and tax related issues would be greater than that.
  
  You are looking to get 50 deals like this? You are asking for bankruptcy. Or at the very least, you will become very vulnerable to tenant decisions and actions and will be forced to make bad choices.
  
  I know it soulds harsh, but maybe you should sell the one you have the most equity in, then use that equity/ cash to restructure the other properties.
  
  I wouldnt think about buying another property until i had the financial structure on the existing properties worked out.
  
  But its your money, its just my opinion, take it for what you paid me for it.

• 
  kevnhl2519th July, 2007

  are there no point no closing costs programs
  for residential income with 80% ltv and A credit
  90% LTV would be better
  
  i know i can get them all day long for 1-4 famlies
  
  i want to buy six family buildings and keep costs to an absolute minimum (I know every one does.)

• 
  cjmazur19th July, 2007

  sounds like you have a 20/5 loan. 20 yr amort due in 5.

• 
  d_random20th July, 2007

  This might be foreshadowing of picky tenants that will nitpick you to death on every minor flaw of your property.

• 
  edmeyer20th July, 2007

  One thing you might consider. My leases contain a clause making the tenant responsible for any broken windows regardless of the cause. Maybe you can swap replacing windows for an addendum to your lease.

• 
  linlin20th July, 2007

  Are you kidding me? The fact that it has been cracked for 10 years without falling out does not mean it is not a safety hazard. What happens if someone bumps the wall hard and the panes fall out and hurt a renter. You would be on the hook because of a lousy $200.
  Replacing a pane is not hard to do. Go pass by a window company and ask one of their workers to come moonlight. I am sure they often do.
  Nitpicky on no you are the one that would ultimately pay. $200 or so now or $200K or so later

• 
  edmeyer27th June, 2007

  This is just my opinion, but I think that you are not only being a little hard, you are also shooting yourself in the foot economically-- at least with one of the tenants.
  
  The cost of a turnover is sure to exceed the cost of getting your money a little late. I have a different approach.
  
  I charge late fees for rent that arrives after the 5th. I also have items in my lease indicating that tenants are responsible for damages caused by them or by guests. There is also a clause that states that any payment received is first applied to other tenant obligations be for being applied to the rent. So if they refuse to pay a late fee, but give a check in the amount of the rent the following month, the amount owed on the late fee is covered first leaving a shortfall in the rent in the amount of the late fee. In CA you cannot evict for not paying late fees, however, you can evict for not paying rent.
  
  In your post you did not mention any dialog with your tenants nor did you mention how late they were. You might find out why they have been late and see if this is going to be chronic. It would be ashamed to lose an otherwise good tenant just because they were late on rent a few times. If the reasons you hear for late rent are frivolous, you can threaten eviction if they continue to be late.

• 
  Taxivestor27th June, 2007

  Interesting. situation.......keep us posted.
  
  ..... But they brought it upon themselves.
  [/quote]

• 
  finniganps23rd May, 2007

  You need to review your state statutes on this. In CA, if I throw the stuff out before holding for a set period of time and making best efforts to contact the previous tenant, I can be sued fo rthe value of the property.
  
  Where is the property? Hopefully someone will be familiar with the statutes in your state.

• 
  d_random23rd May, 2007

  "Additionally, Arkansas landlord/tenant law states that
  upon the voluntary or involuntary termination of any
  lease agreement, all property left in the dwelling by the
  tenant will be considered abandoned, and may be
  disposed of by the landlord as the landlord sees fit and
  without recourse by the tenant. All property left on the
  premises by the tenant is subjected to a lien in favor of
  the landlord for the payment of all sums agreed to be
  paid by the tenant."
  
  http://m47080.kaivo.com/Home/PublicWeb/Library/Index/1690000/1630100/index_html

• 
  imnes23rd May, 2007

  Anybody know what the law is in Florida?
  
  Nick

• 
  imnes23rd May, 2007

  Found it:
  
  
  Florida
  
  § 715. 04 et seq.
  
  
  The landlord must send a notice, to the place the tenant is expected to receive it, that (1) describes the property in sufficient detail for the tenant to identify it, (2) advises him that he has 10 days (15 days if the notice is mailed) to claim it, (3) appraises him of reasonable storage costs, and (4) tells him where to claim the property.
  
  The notice must also inform him that unclaimed property of value will be sold at a public sale and property believed to be worth less than $ 500 will be kept, sold, or destroyed.
  
  After deductions for storage, advertising, and the sale, landlords must turn over to the county any residual proceeds.
  
  
  If I can post a URL yet, rules listed by State: http://www.cga.ct.gov/2006/rpt/2006-R-0164.htm

• 
  HMC24th May, 2007

  Thanks so much!

• 
  jimingersoll22nd July, 2007

  Anyone know where to find the info for Virginia?
  
  i just bought a property where the tenant abandonded the place before I closed and I am not sure what I need to do with all his stuff???
  
  thanks
  Jim

• 
  jimandlacy23rd July, 2007

  http://leg1.state.va.us/cgi-bin/legp504.exe?000+cod+55-248.38C1
  
  Jim