buying out my noisey neighbor's landlord

Discussion in 'Homesteading Questions' started by Doc, Feb 11, 2004.

  1. Doc

    Doc Well-Known Member Supporter

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    This goes along with the "noisey neighbor" thread from a couple of days ago. I want to buy my neighbor's small house and two acres and have it as rental property (or for my mother if she ever decides she needs to move close to me).

    I have asked him many times to buy his place, but I think he wants it for investment income.

    So, here's my question: if I offered him a cash sum (not for the total amount), what might work? I'd still be giving him a monthly payment....plus cash.

    Does this make sense?
     
  2. comfortablynumb

    comfortablynumb Well-Known Member

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    if the tennants are husling drugs, call up the dea, they raid, seize the property, put it up for sale and you go buy it for 10% of its value. they dont care if its a rental, I have read many articles where landlords have lost their rentals to drug forfeture, the law expects them to evict, or try to when drugs are suspect. if he doesnt he is , in the eyes of the law, involved.
    Unfair but it happens everyday.

    On a friendlier note, save your money, get a good night scope, and watch them... figure out when they are activly moving any dope, and then call the cops at your whim.
    If you want to make a cash investment, invest in a few bucks in all the "legal" supplies you need to make a good size meth lab.. wait till they leave for the day and then go plant the pile in a nice arranged heap in the basement or kitchen.
    wait till they get home, call the cops. The cops really hate people making a a lot of party noise while they are setting up a meth lab.

    of course as you said before if they are parting that hard, and you see em coming dropping and leavin, they have all the eveidence to hang them already.
    if you dont want pinned for squeeling, go down the street call in from a payphone and report "suspicious activity "on a road you were just "passing by" on.
     

  3. big rockpile

    big rockpile If I need a Shelter

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    :D Buying out always worked for me they offer me a price I can't refuse :cool: I'm packed and out of there.

    big rockpile
     
  4. deberosa

    deberosa SW Virginia Gourd Farmer!

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    Well, if he doesn't own the place outright - he would need enough cash to pay off the mortgage. I would say enough monthly to cover what he's making now (minus expenses but add in what he's getting on tax deductions. Just thinking what kind of offer I would accept if I were him. If I come away even and don't have to deal with the pesky renters causing a disturbance or wrecking the place, I just might sell.
     
  5. RAC

    RAC Guest

    One trouble you might run into is that if the landlord has leases rather than month-to-month, you have to honor the leases after you buy the property. You don't have to renew them, but you can't buy the property and just make them leave, not without proof that you entered lawfully as a landlord and so forth.

    From what you said, your neighbor seems to be clueless in regards to leases, and you would want to review them as part of the deal. If he signs a year lease, it can be more difficult to evict them than you might think.
     
  6. Doc

    Doc Well-Known Member Supporter

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    I guess I was asking specifics on buy outs. For example, I know the renter pays $650/month. My friend (his landlord) told me that the house was almost paid for.

    I suspect his mortgage payment to be around $500 or so (he's owned for ten years, perhaps longer).

    Something that will be a big incentive?

    Obviously, he isn't a good landlord and doesn't know much about business (nevermind leasese -- he just uses the standard lease).

    If I were to buy the property, I would have the tenants leave for "renovations" and then an increase in the rent. Or -- have it designated for my mother.

    You can do this -- it happened to me! And the new buyer's mother never moved in.

    I agree about the month to month rental. Far better when you have risky tenants. I have a pretty good tenant in my other rental house, but I still don't give him a year's lease. That's just way too long.
     
  7. Rugbyguy

    Rugbyguy Guest

    Hey guys and Gals - First post here!

    You only have to honor the lease if it is recorded with the county. Most tenants do not bother with this.

    It may take a while, but the best way is to always ask how the annoying tenants are doing, what he had to fix last, how many times have they complained in the past month, yada yada yada. Make him think about what a pain it is to be a landlord. Then buy the property.

    If he is a friend then you may want to tell him that you will give him the actual value plus 5%. Then all you have to do is get it appraised.
     
  8. Hoop

    Hoop Well-Known Member

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    I don't think you necessarily want to buy the place and it sounds like the owner is very reluctant to sell.

    The owner obviously wants to hang on to the property for some reason. The reasons are endless. They may even want the place for a family member or friend.....sometime in the future. Tax purposes, etc.

    The owner does seem to be a reasonable person, and quite likely is receptive to putting the partying at his rental property in check.

    I wouldn't hesitate to call the cops at the next party. Quite likely, the cops already know the individuals involved and are itching for an excuse to get involved. Unless you call the cops, they have no legal standing to do anything.
    Partiers don't like cops and cops don't like partiers. The cops aren't going anywhere. The partiers will quickly move on when they find the location is not condusive to partying.
    Its quite likely your neighbor may confront you. If/when they do, explain that your sleep is important to you, and that you will not hesistate to call the cops again. Explain to them that if they choose to party in a quiet manner, which does not result in depriving you of the "quiet enjoyment of your property", you could care less what they do.


    If you hitch your wagon to the possibility that you may be able to purchase it sometime.....you will be in for a lengthy period of frustration and sleepless nights.


    Make your stand......or live with it.
     
  9. BamaSuzy

    BamaSuzy Well-Known Member

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    If there are really drug buys being made there and the DEA or some other authority closes in, they can possibly seize the property because they can say it was tied up in drug deals. It doesn't matter that the people in the house were the ones using the drugs or selling the drugs, they can still seize it....then it would be tied up in court for a long time while they owner's case in trying to get it back was heard AND while the cases against those living in the house were heard.....so you might need to think about that of you're considering some of these other folks ideas about calling law enforcement.

    Of course if they are MAKING crystal meth (which is THE thing in most rural areas now around here) they will likely goof one day and blow the house to pieces which would likely take care of all the problems there....
     
  10. RAC

    RAC Guest

    Leases don't have to be registered with the county or anywhere else. They have to be enforced because they are an existing contract. If you "lose" your contract and the tenant can pull out one in court, you are out of luck.

    If the rent is fixed as part of that contract, you cannot change it for the life of the lease. That's why if you do buy, you hope the LL does not have any long-term leases in place. Also you make sure that the LL turns over any renter deposits to you.

    If you really want to buy the place, and you are sure the tenants are the problem that you say they are, let the sheriff's office do its job of removing them. Let the LL deal with the problem he let in.
     
  11. rafter

    rafter Well-Known Member

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    If they are cooking meth, you will have a hazmat clean up to deal with. From what I have been told, it is just about as easy just to tear down the house to start over, as do the clean up.
     
  12. rambler

    rambler Well-Known Member Supporter

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    In some states, like Mine, evicting people is impossible over the winter months, and they can fight evictions over the summer for long enough to be into the winter months. Meanwhile, they don't have to pay electric & fuel bills, they accumulate on the owner's name. Be real careful getting into such a situation. You could be sitting on a very shabby house & a year's worth of utility bills if you have renters who know how to play the system. And if you talk about them to other landlords, they can sue you for that too......

    As to the question, think about the tax laws. If you offer the guy more than he paid for the place, he gets into capital gains and really doesn't make anything. It's very complicated to reinvest income into another place & not lose a big chunk to capital gains. He's currently makeing $100 a month, or $1200 a year, and might not mind the place running down, no expenses on upkeep?

    You have to look at the whole complicated tax situation, and make it worth $110 a month to him, after taxes, plus have the value of the chunk of realestate to pass on tax-free (no capital gains on estates) to his heirs.

    Depending on his financial status, that can be quite complicated to figure out something that will actually benifit him over his current arrangement of getting $100 a month income plus expected capitol gains. If you are in a growth area, or a possible growth area, he could be figuring this property is worth a million in 20 years, and wants his heirs to have that oppertunity.

    Look at it from his point of view, & think of the consequences of selling now vs keeping it.

    --->Paul
     
  13. Have your own party, perform a ritual killing of a goat and then dance around your own bonfire wearing its hide. Oh yeah you will have to build a giant, 40 foot Gold painted statue of a hamster to sacrifice your goat to. Find some good devil worship music and crank that up too. Invite your neighbor to join in the eating of goat heart and so on. Just kidding ofcourse!! Sometimes you have to think "outside the box" and since you want to AVOID serious confrontation at all costs, nothing works better then freaking out the offending party, literally. So rent some outfits, like those teletubbies or something maybe a muppet. Or build a giant chicken suit, like ten foot tall, break light up light sticks all over it so it glows and storm your neighbors party. Build a 30 foot cross and light it with blinking neon bulbs and rescue strobes. You think they might be cooking Meth? Get a giant metal container and start boiling manure!
    If people think your crazy they will leave you alone, very alone.
    DISCLAIMER:The above is meant to be funny and not to be attempted at home!!!
    Remember stay on YOUR property, never be aggressive. Talk to a lawyer about action against the landlord. If you want this guy out, then sue his landlord!!! Go after the landlord legally. I wouldn't spend my money to fix his problem. Video tape, photo evidence. Get a recorder and invite your neighbor over to YOUR HOUSE and tell him about the situation. Obviously this will not help anything but you will get on tape the fact that you told him in a polite way and he has done nothing. Then as the People's court always said "Don't take the law into your own hands, take em to court!"
     
  14. birdie_poo

    birdie_poo Well-Known Member

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    The more you pester him for the property the more he knows that it's worth a lot to you...probably more than you are willing or able to afford when he decides to sell it...if he decides to sell it.

    Have a 3rd party inquire into it. If he bites, then buy the property from the 3rd party...and the 'landlord' will not be the wiser.
     
  15. Siryet

    Siryet In Remembrance

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    where i come from "Friends" don't create trouble for "Friends" but we will stand up for ourselves.

    Another option is to talk to your friend and explain that you thing that the tenants are dealing drugs and that the Gov Can and most likely Will Confiscate his property if they are dealing drugs.

    Also inform him of the METH clean-up conditions and that may induce him into selling or at the least evicting the present tenant.

    Try to solve this in a friendly country way and see what happens.
     
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  17. Doc

    Doc Well-Known Member Supporter

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    The only answer that was remotely relevant to me was the 5% above appraisal. I was thinking of offering him $10,000 cash and then taking over payments.

    I agree, though, that a third party is a far better way to go -- he knows I want the property, and he can be shrewd. He isn't THAT dumb, just a wuss when it comes to standing up to two "adolescent" males.
     
  18. Don Armstrong

    Don Armstrong In Remembrance

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    I don't really have help for you, but I'd suggest that you think about what he wants. He may be locked into this property, and not be able to finance anything else. If things are turning over in your area, just keep an eye open. Something he might think is desirable might come up (say adjoining his existing home), that he's unable to get because he's locked in where he is. If so, since he's a friend, you might be able to approach him and say "hey, I see that there's some land available right next door to you. Now maybe you're stretched at the moment with the finance on your property that just happens to be right next door to me. I'd like the property next door to you, but I'd like even better the property next door to me. Does this suggest any possibilities to you?".

    If you offered to cover ALL the legal costs, you might start making progress. Particularly if you've had two or three different third parties making him lowball offers on the property you want. If they were doing that - hey, it might work, If it didn't, it would paint a picture that was lower than he might otherwise believe, and the price might be set in a lower band.

    It's a slim chance, but hey - a 5% chance of a bargain is worth a little effort.
     
  19. Doc

    Doc Well-Known Member Supporter

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    Mr. Armstrong,

    I doubt my friend is interested in buying anything else even if there were a property available. There isn't.

    But, the third party idea: where do you find third parties to step in?
     
  20. Don Armstrong

    Don Armstrong In Remembrance

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    I'm not in your area, so I can't offer any guarantees. However I'd suggest that a real-estate agent could do the job, provide you took enough time to prime them right before you had them make an offer.