House is selling $45k there is currently a tenant in there paying $650pm. Is that a good deal. Some rehab is need still. Opinions?
Depending upon a lot of factors that are not listed, this could be a decent deal.
I paid a little more and got a tenant that was paying a little less rent. But, the taxes here are relatively low and the house has some potential. Just be aware that a lot of interior rehab is almost impossible…I painted the outside (looks 1,000% better), put up shutters, trimmed the trees/hedges, and put up a new storm door in hte back but have done nothing inside because there is a family in there (dad, mom, 4 little kids). They are, however, pretty good tenants and ALWAYS pay on time. Cashflow is decent (I’ve raised the rent by $25 a month two different times since)…
I would say that if the interior rehab is not a safety issue and the tenants are OK with it the way it is, it will probably cashflow OK for you…
I was there today. Neighbourhood was not the best… and probably a bad area in in bad pocket… not sure if I want to do this… hillbilly type [not I am not prejudiced or so]… can it still be done… I had spoken to the Realtor who mentioned that the tenants even though are such but have been good tenants for the past few years. Suggestions? It seems based on what I saw… if they do not pay their rent I would not want to go ask them to pay… though I am 220 and 6’4" myself… I hate to sound like this but would this.
could be a good deal if no major capital expenses (roof, etc). as for collecting rent, that’s what 3 day pay or quit notices are for (delivered certified mail and/or posted). I don’t do rent collection (on overdue accounts otherwise).
I have almost the same question. A triplex with renters, but there is no written lease. My question is if they do not agree to the increase in price (I will have to increase or I will be in the negative). How much time do they have after closing?
I was told I did not have to honor anything since it is month to month. Two renters have been there a great deal of time (low income) but I will need to pay more one loan and it needs alot of rehab, so far mainly cosmetic and cabinets one bath etc.
Can’t you still rehab interior if they are there?
<<My question is if they do not agree to the increase in price (I will have to increase or I will be in the negative). How much time do they have after closing?>>
This will be dictated by the state/local landlording laws/ordinances. It is different everywhere.
<<Can’t you still rehab interior if they are there?>>
It is very difficult to rehab around tenants…plus it could add a great deal of liability to the equation…I will only do small fix-up projects while tenants are in…I really don’t even like to paint with them in…
Another question is why would you want to rehab with the renter in place? The value you acheive from an upgraded interior is lost on the fact that the renter is still in place. They are essentially getting an upgrade for the same money. If they don’t agree to the increase in rent, you give them the required notice and let them walk. Rehab, then rent for more money. If they do agree to the increase, then you are getting more rent for the same property. Why spend the money to rehab?
Don’t rehab just for the sake of rehab. Keep the money in an interest bearing account until the tenants move.
This is absolutely wrong and will get you in hot water very fast. Yes, you have a month to month lease and therefore, you would need to terminate that lease per local and state laws regarding a month to month tenancy
I guess that I wasn’t clear. The tenants are there, however there is NO written lease although it is month to month with the current landlord.
I do want them to walk if they are not going to agree with the price increase once the closing takes place. There is just no way around that, I will pay then more than the current landlord so it must be passed on to them.
I do need to rehab as a necessity. As far as rehab with them around, I meant the small jobs. I know they would have to go for the big ones.
Sorry that I wasn’t clear. Thanks for the replys