Tenant Has Roaches, Wants Me To Pay Pest Control?
A tenant says they have a roach infestation, wants me to pay for a pest control service at $90 a month?
As a landlord, why would I be responsible for this? There were no roaches when they moved in a year ago...
[ Edited by Jnzy111 on Date 11/08/2010 ]
WHAT DOES YOUR LEASE SAY ABOUT PESTS?
go by lease
I only have 2 properties with a mortgage. The others are free and clear. As far as getting around the 4 mortgage limit, I think there are a few on this board ho get around the limit...possibly with commercial lenders?
I think that is pretty common. You need a license in CA too. Probably a good thing if you think about it. Does it specify that you are FT in RE for 3 years in MI - seems like a lot and FT is surprising to me since there are so many PT agents.
As stated above, buy with cash and roll income into other properties. Leverage is what many have done to get into more properties or a larger house and when income goes down or vacancies are up then the house/s could go into foreclosure and all can go down the tubes. If you try to make money very quick, it can be lost very quick, but if you go slow and steady the same or larger rise in wealth can be achieved. One factor to focus on is loans and refinancing are expenses that would reduce cash on hand and lower the number of houses purchased, in the end lowering accumulated wealth.
Also keep in mind that banks often require you to wait 6 months or longer to do a cash out refi. They also generally limit what you can take out at lower of FMV or price paid if you do a cash out refi. within say 6 months. Most will allow a cash out refi at 70% of FMV after 1 year.
The other issue you may have is getting loans this small on each individual property - banks often want a min. 100k loan. If you can bundle the properties that may get over that hurdle, but then you may have issues if you decide you want to sell one of them later and they are part of the larger loan.[ Edited by finniganps on Date 03/08/2011 ]
Newkid,
Where do you suggest I look for commercial lenders that will lend based on cash-flow or for multiple properties?
Thanks
SR
Mike , have you considered being the banker in this scenario instead ? Your income is pre-tax net . No management to speak of . Your investment would be secured RE worth twice at TODAYS prices . All you would have a life ...
All The Best ,
Bob