Landlording Rants Listed Properties Real Estate Agents Real Estate Investing

My rental property is STILL for sale!

My rental property is officially pissing me off. It’s been for sale since November 2010.

I have it listed with a realtor (my father to be exact.) It’s had exactly 2 people through it. 1 said it was priced right. 1 said it was priced too high.

New carpet, new paint, it’s just in new-ish condition we’ll say. Started at $99k, then dropped it like 15k, now down to $72k.

Welllllllllll I’m at my wits end but this evening I was talking to a friend of mine, Bill Walston from, and Bill said “why don’t you do a 3 yr. lease option?”

Now folks, I’ve done lease options before. I am very familiar. As a matter of fact, I’ve done a lot of different types of deals since 1999 when it comes to real estate investing.

So, why is it that 7 months after my property has been listed that I am just NOT thinking of doing a lease option on my property because Bill brought it up tonight?

Ridiculous huh? I think sometimes I get really “whacky” when I’m dealing with a property of mine personally. And I suddenly forget everything that I’ve learned in the past oh gee, 12 years! lol

I may have thought about a lease option and nixed it because I just want to be 100% done with the property, but the truth is, I think Bill is right…..I think the lease option is my best bet right now cuz guess what?

Carey don’t like shelling out hundreds of dollars a month for NADA!!!! Thanks Bill, you’re the best!

P.S. Don’t worry, I’ll keep ya’ll posted on my new idea of lease optioning my rental property out. Kathy and I discussed it this evening and she’s all for it! I’ll break the news to pops Sunday (yeah, yeah, I know it’s father’s day, but come on I need to get rid of this thing!)

P.P.S. Remember, if you’re interested in making passive income by starting your own ATM Business then you should sign up for my free video training series!

Did you like this? Share it:
Atm Deals Debt Goals and Planning Landlording Rants Makin' Offers Multi-Units/Apartment Buildings Passive Income Private Lenders

Court Date and Security Guard Run-in

Well my court date for my eviction is scheduled for Wednesday morning at 11:15am. I’m seriously thinking of selling the place if it’s in decent shape, which I have a feeling it will be. Even though I’m pissed at my tenants for not paying, they always kept the place immaculate and even added “home” touches to it.

Starting October 1st, Kathy and I are going to go through a major shift in our finances…..we are going on a major budget to pay off of debt. Speaking of which, did you read this post by Shae that will help you get out of the rat race? Shae is the one who helped me with the actions that Kathy and I will be taking come October 1st. (P.S. Shae, I hope it was ok to say that lol)

My thinking for selling goes like this: Do I want to have a crap load of debt and collect $300 a month positive cashflow from this place? or Do I want to sell it and get rid of 1 huge debt and possibly another big one? And then work on bigger and better streams of positive cashflow? (Btw, that $300 goes right out the window when you have to evict a tenant 1 time.)

So the jury is still out with the rental property. But funny story, last night Kathy and I went to fill the strip club. Well it was Race Weekend and the place was PACKED. And I mean PACKED! There were guys all over the place and security guards all over the place. Some guy stopped us walking in and asked “Have you been in there?” And I said “Tonight? No. Why?” And he says “two women unattended…it’s probably not safe.” I lol’d and said “we come here all the time, we’ll be fine.” I should have said “I know the owners, all the girls, the manager and the tallest, badest security guard in there.” But I didn’t….

Now this was the first time we went there where there were more security guards there than their normal guy. The first security guard stopped us to try to make us pay, until the BIG GUY that we know pushed him away and said “they’re the atm people, let them go.”

Then we walked right over to the atm, right passed a gigantic security guard (one who was never there before.) We noticed the machine was unplugged (i.e. it was out of money so the owners unplugged it.) Well Kathy leaned down to plug it back in and little did we know but the gigantic security guard was following us and at this point he went for Kathy (it seemed) and said “leave it plugged in.”

Well all I could do was react, thinking this big guy was going to grab her or something, and I stepped in and put my hand around his HUGE arm (ladies and gentlemen I couldn’t even get my entire hand around his arm lol) and I squeezed realllll hard and said “BACK UP…it’s our machine.” Kathy looked at me and looked at him and he just said ok and backed up and went back to his station lol

After that split second I thought to myself “holy shit his arms were huge and he could have crushed me like a bug!” But of course, we don’t think of that stuff when we’re trying to protect our loved ones do we? Anyway, as we walked out the security guard came up to me and said “sorry about that.” I told him no problem.

Then Kathy and I thought and said to each other “hey, at least they are watching our machine!” lmao So I have to say that once again, I’m happy to be alive and so glad that mr. bad ass security guard didn’t crush me like a bug. hehehe

Kathy and I went and saw that 4 unit that I seen already….we will be making an offer on that cock-roach infested place tomorrow. If it gets accepted…the private money hunt will be on. We’re actually going to be making like a $35k offer, I’m thinking…place needs some work tho….plus 3 tenants aren’t paying so we’re going to have to account for evicting them and only getting 1 months rent while we work on the places to get better tenants in. Wish us luck!

Did you like this? Share it:
Finding Apartment Buildings Landlording Rants Makin' Offers Multi-Units/Apartment Buildings Networking Private Lenders

Offers on 2 multi-units and an eviction

Do you remember my last post where I talked about finding a motivated apartment owner by reading the paper at work?

Well I read the paper again and found another gentleman who was willing to hold some financing. Sooo in the past week I’ve looked at 4 multi-unit properties. A duplex, a triplex, a quad and a 6-unit.

Quite frankly I’m not interested in the duplex at all. It just wasn’t in an area that I’d like to invest in. Not a war zone or anything but definitely drug-ville I can see. Now the triplex was ok but it’s a triplex that should be 3 residential units but apparently the boro wouldn’t let him make it 3 residential units and one of the units is for a business. It just doesn’t fit the property…..I guess I could check with the boro to see if they’d change that, but I dunno.

The 4-unit I really liked. Keep in mind that the duplex, triplex and quad were all owned by an Amish gentleman.

amish multi-family unit owner

I gotta tell you that I pulled up to the property and I was looking for his horse and buggy

I mean there wasn’t any transportation near the property and you definitely needed it to get there (of course I was assuming he lived on a farm or something.) I even asked him “how did you get here?” He said his “assistant” lives around the corner and dropped him off.

I gotta tell you folks he was filthy. I mean his hands were nasty….soo dirty. And folks will tell you well it’s because the Amish are hard workers and you know what I’m not going to deny that they are hard workers on the farm, but he definitely is not a hard worker when it comes to his rental properties. They had TONS of deferred maintenance. Don’t get me wrong he was the nicest man….really nice, calm, well-mannered, etc. but when he asked me for a ride to his other properties I kinda didn’t want to give it to him because he smelled reallllly bad. I’m not even kidding. But I gave him a ride.

So I have to do the numbers on his triplex and quad, cuz I’m not interested in the duplex. Then today I looked at a 6 unit. Veryyyy well kept property in an area that is completely new to me (actually so was the Amish dudes properties.) The 6 unit is the guy willing to hold some financing. He claims he has someone else interested in it as well…but as we all know, “being interested” and making and offer and actually going to settlement are 2 different things, right?

I’m going to do the numbers and make him an offer too. Where will we get the money for any of these properties? Hey…maybe a private money lender who wants to earn a decent rate of return on their investment. Ever since I got private money for my last 2 atms (which are doing very well, by the way) I’ve been casually talking to folks about private money.

On to my current rental property….tomorrow I will be posting a Demand for Rent notice on the property and I’m 99.99999% sure I’m evicting this tenant this month. I’m not even going to tell you his excuses because I really didn’t listen as I didn’t care. Don’t get me wrong, I’m a very nice landlord, but I’m very firm as well. And I stick to my guns and start the process when you don’t pay (and especially when you don’t call and give me a heads up as to why you haven’t paid…not that I care to hear your excuse, but it’s just a courtesy thang with me I guess……ya know?)

Anyway, I really like these tenants and apparently the hubby is asking if his dad will bail him out (mind you, the tenant is a grown man, in his late 40’s or early 50’s.) I told him that if his dad or brother bails him out this time that I would be willing to sit down with him and his wife and go over their finances with them and help them come up with a budget. Basically, the guy has a spending problem….he buys crap and then has no money for the bills.

Btw, he called me and said “Thank God I got your message before Maggie.” His wife has no idea what’s going on with their finances…he started whispering to me and said “I gotta go outside, Mags just got home.” Soooo, I told him that he needs to tell his wife what is going on and that she perhaps may even be the better person to handle the finances since he can’t do it…..I said she’s gonna know tomorrow when I put your notice on the door.

Soooo I hope that his dad can bail them out and I hope that they “fix” themselves but I’m fairly confident it’s not going to happen. I was chatting with my father tonite and he said “don’t worry, you won’t have any problem renting that place in this market.” Sooo I hope he’s right because I just did my personal budget with Kathy and paying my rental property mortgage is NOT in the budget lol

More on that in my next post. Btw, my hours are changing at the BMW job. I just asked the General Manager if I could work 9 to 6 on my early days and 10 to 7 on my late days. Reason being is that school started and I need to be here in the morning to get Joe off to school when Kathy is traveling, plus I want to get home at a relatively decent time to go over his homework with him and get him to bed at a decent time. The GM was fine with it.

P.S. I’m doing ok with my diet and exercise routine. Well I don’t want to call it a diet, it’s more of a lifestyle change where I start eating better………and I’m doing better on that aspect moreso than the exercise routine, but it’s cuz I’ve been so tired from working my tail off (work work and then atm’s.) This week will be better hopefully.

P.P.S. And yes, I’ve been losing weight. hehehehe

Did you like this? Share it:
Landlording Rants Passive Income

Rental Late Fees can add up

Rental late fees can really add up month after month and can actually help add to your NOI (Net Operating Income.) Of course, sometimes they aren’t something you can predict.

So one of my tenants that I have, who I absolutely love (for the most part,) are paying late again this month. This is the couple that Kathy met when they were looking for a place and recommended that I rent to them and I listened to her? Don’t know if you guys remember that post a while back. Anyway, they’ve been awesome with paying rent (they paid a few months up front before moving in) and I’ve been extremely happy with the way they keep the property. They are a hispanic family. It’s mom, dad and 3 children and they really treat the property as if it’s their own and it really looks awesome!

Anywho, last month the husband calls me and tells me the rent is going to be late because he got arrested :-O He apparently got a ticketing for driving without a license and didn’t realize that the laws in PA are different than the laws in FL and he got locked up in a short amount of time after getting the ticket for not responding to the ticket.

Now, I’ve had rental properties for over 11 years now and I’ve heard all kinds of stories but I can honestly say that he sounded really upset and embarrassed about getting arrest. He said “it was either pay the rent or pay to get out of jail.” Obviously, he paid to get out of jail.

Their rent is due BEFORE the 1st of the month every month. So the end of Feb. he calls me and explains the above to me and says he’s going to send me $500 now and a post-dated check for $475 (for a week later that includes $50 in late fees.) I said ok. I mean I’ll take an extra $50, right? Their normal rent is $925, but there’s a $30 late fee charged if the payment isn’t received by the 1st and then an additional $20 if the payment isn’t received by the 5th of the month.

I get a call from the tenant today saying that having to pay the water/sewer bill ($221) set him back again this month and that he just sent the rent in the same way he did last month. He said “I sent you a money order for $500 for right now and a $475 check that’s post dated for next Thursday.” Sooooo he already knew to include the late fee. Excellent!

Now between you and I….I honestly, don’t mind if they pay their rent like this every single month. My mortgage is about $575 and not due until the 15th of every month (the latest date, of course, that it can be paid with no penalty.) So an extra $50 a month works out well for me.

What do you all think? Are you happy when your tenants are late and pay you your late fees? Now keep in mind I’m talking about the types of tenants I’m describing above…I’m not talking about dead-beat, losers tenants that you know you’ll most likely be evicted shortly anyway. The kind of tenants that you have to call and say “What’s up? Why haven’t you paid your rent?” I’m talking about the kind of tenants who perhaps had a “glitch” in their life but they are courteous enough to call you and give you a heads up and they make an effort! Grant it, I’d like the entire rent amount up front every single month, but hey….an extra $50 a month….why the heck not???? What’s your take? What are your late fees that you charge?

Did you like this? Share it:
Landlording Rants Real Estate Investing

Another landlording lesson learned

So I put a tenant in a while back and after 4 months had to evict them……well I happened to get one of their fathers who lived in Michigan to co-sign.

Anyway, I evicted the tenants with no problems and no court process. Just told them I wanted them gone by Sunday and they were 🙂 Go figure. So they stained up my 4 month old carpet (but I got all stains out with my Rainbow and Aquamate) and left a messy place, but had a friend, plus myself and Kathy clean it up.

I proceeded to file against the father because when I went to my local district court the judge assured me that I could and that the father was responsible for 100% of everything, whether I wanted to go after the tenants or not. So I filed and after the court date I got a default judgment.

Now I call Michigan to find out how to file my judgment. I had to fill out a foreign judgment and I did that. So after a few days of filing that, I get a letter stating that the father filed a motion to get rid of the foreign judgment. I called the court house in Michigan and they told me that I couldn’t represent myself because only a Michigan attorney could represent a corporation (I’m an S corp for my real estate business.)

So I contact an attorney and to make a long story even longer after all was said and done the judge threw out my foreign judgment, but he said that my attorney could re-file for me and he’d look at things further and hear my side. I’m pissed but then again I have to remember that my drug-using, deadbeat, non-paying tenants are gone and I have an awesome family in there now that pays early and keeps the place looking phenomenal.

The good thing about me is I’ve made mistakes my entire 10 yr. investing career, but I NEVER make the same mistake twice. That’s a key bit of advice that I can give…..learn from your damn mistakes at least!

Did you like this? Share it: