All Forum Posts by: Andy Collins

It's according to what you call past performance, I will rent to someone with a foreclosure, but won't rent to someone with an eviction. A foreclosure can be caused by many event, including buying at the top of the market and realizing your way underwater.

I tell everyone before screening I'm not looking for perfect credit, if they had perfect credit they would be buying, but I'm looking for people that pay their bills on time, maybe have had a hickup or two, but generally pay everything they owe every month.

If someone has something very serious on thier credit, they normally tell me then and save us both the hassle of declining them.

Why not just sit down with her (if you can get her) and explain that you know she is in a bad situation, but you have to move forward,,the problem being if you evict her, it will be much harder for her to find a future place to live.

Tell her if you can work out some arrangement, like giving her 2 weeks go get out, you will go along with it and take that amount out of the deposit (please tell me you have a deposit),,,

If you approach them that you know that they have a problem,and you don't really want to harm them, instead of 'attacking' you might be shocked at how SOME people will react (others will just see it as another way to rip you off)

After that if they haven't lived up to their end of the deal, throw them out the door,,you can even say in court that you tried to help, and wanted to keep from evicting them, but they gave you no choice (in case they play the "we didn't know it was this serious" card)

just refinance for 29 years. The main thing is that you don't put your first mortgage in jeopardy because of the application for the new loan (it shouldn't)

If its contingent on the loan being approved at the terms outlined, heck take a free payment, and maybe have a friend with the lender

The only time my rentals cause any anxiety is when I buy a new one and start rehab,,I'm always waiting to find something I didn't plan on, but if I do its not the end of the world.

Rentals after they are in service don't really cause me an anxiety, if one comes open I'll rent it,,

In the 2008 market crash I lost more money than I would want to admit,,,you know what, it like what Duncan said, I know I'll just make it some other way,,in fact, as strange as it seems, there was a LOT more anxiety then than my rentals will ever cause

Your very patient, I would have turned the entire thing over to my attorney to file suit against everyone involved before now.

I have a wifi enabled lock on my residence and love it,,I can't say I use it very often, but if someone needs in I can turn the alarm off and open tthe door, then when they leave lock the door and turn the alarm on,,,(it's also great if your in another room busy and someone you know is at the front door)

@Patrick Baker as others have stated, a few years ago you could do that with very little out of pocket, I'm in the Dallas market now, good deals are hard to find, especially if you want good neighborhoods.

Three deals in your first year is a very realistic goal, don't buy all 3 at once, buy the first watch the process, get it rented, move to the second,,by the time the second is in rehab its time to start looking for #3.

Choose neighborhoods wisely, that's the most important part, if I have to end up paying 90% on a house in a neighborhood I want, vs a super deal in a not so nice neighborhood,,I will take the 90% deal all day. The better neighborhoods are easier to rent and easier to sell when you get to that point, and you will be able to choose your tenant.

Until you have maybe 20 properties (each persons situation is different), you won't be able to do it full time, and even then you may need your full time job to show the income you need.

Mortgage companies will use 75% of your rental income as income against PITI for the first two years on each property,,its hard to show enough income to be able to have the income you will need for financing.

I have heard they don't let you use your rental income until you have two years experience, but I don't know about that, maybe someone new can answer if that is true or not.

You have to be able to finance properties are your sunk, and many times that means holding on to your full time job longer than you think you need it

look at the interest rate, currently rentals with conforming mortgages I'm paying roughly 5%,,now the question is, would I rather have cash and be paying the interest (less tax deduction, which reduces that to maybe 3 1/2%), or no have cash and save that interest cost.

I personally will take all the 5% money I can get, I won't do a deal with a cash of cash return of less than 25%,,,so yes, I want to make that and pay the 5% (as noted really 3.5%) in interest.

If the deals get to the point I'm could only make, say 15% cash on cash, and I was paying 10% on my money, I would re-evaluate that

Everyone's situation is different,,what's right for me might be wrong for someone else

it's still a conventional loan, just not an "owner occupied" loan,,,

You ask how the bank would know, are you going to homestead the property,,the banks could always see that you didn't or if you did and your taxing bodies figured that out, you would be in trouble with them. That would show up in appraisal records for years.

Even if you were never a day late with a payment, the next time you apply for an owner occupied loan it could come back to bite you

I am shocked on what mortgage underwriters are finding today, this week I was refinancing two properties, the bank came back and said according to my bank statements I was paying an American Express, but it wasn't on my credit report,,,it was in a company name, so I just sent them the statement,,,,but it amazed me they looked at my bank statements that closely