BiggerPockets

So the house I flipped has not sold and I am at the point where I believe potentially it will be more beneficial to rent out. I have already planned to screen using BP's recommended screening service. Couple of questions here, I was going to us an electronic withdrawl from the potential tenants bank account, what are your experiences with that.

Secondly, I am a total newbie Landlord. What tips/advice can you give me to make this experience less painful? I am hoping to learn from others mistakes. Any and all information is appreciated!

Rob, are your "tenants" getting a deed or a lease? WADR, this doesn't sound like a sale with short term owner financing. You collect rent with 20% credit off a future price, and it's up to them to finance at the balloon. Sounds like a lease purchase.

George, you need to be careful with a lease pruchase or lease option "programs". In some states, like NC, there were too many abuses going on so the state now regulates Purchase Contracts Executed With Lease Agreements. Check your state for regulations or consult with an attorney.

In some states, the "In the event they do not buy, they loose all of their credits and their downpayment" would apply only if the condition of forfeiture was in writing and explicitly specified up front.

George, there is a lot to learn about being a landlord, and most of it will be learned from experience. A few tips I wish I knew about when I first started was 1. get a good lease agreement. Not the cheesy ones you buy at office supply stores. If you are a member of ARPOLA they have free lease agreements that are state specific. You want the agreement to cover every aspect and bad scenario you can possibly imagine. So when it happens, both the tenant and landlord know what is expected of them. Get everything in writing, no verbal agreements EVER!! 2. Be a member of ARPOLA, it's only $35/year and it more than pays for itself. They also offer tenant screening at a very reasonable price. 3. Take photos of EVERYTHING before the tenant moves in and have them sign it on their move in date. 4. Don't let them push you around, be firm with the rules, it's a business relationship and nothing more. If you let them slide with late rent for one month they'll take advantage of you and assume they can do that every month. 5. And last, admit that situations will come up that you won't know what to do and will probably make a bad decision. You will make mistakes, it's part of the learning process. Nobody is perfect the first time around. I also recommend picking up a copy of "Landlording" by Leigh Robinson. Good luck!