All Forum Posts by: Brian Barfoot

That's what I was afraid of. Again, I have no intention of doing this but I'm the kind of person who can't help but see the loopholes. If there's anyone reading this thread with fewer scruples: best of luck to you.

This is purely theoretical but I want to know how banks check to see if someone is living in a property. I know that the down payment can be drastically lower and the rates are often better if you live in a property. Many banks won't even give loans for a non-occupied rental. What's to stop a person from going into a bank and claiming they intend to live in the property then once the financing is through, setting up tenants and moving on? 

Exactly. If the seller says it can get higher rents, have them get new tenants at the higher rate to prove it or sell at the current implied value. Otherwise you're speculating and we all know where that can lead.

I'm not sure if this would apply to a school as small as the one you're talking about but I've had great success with grad students. They are busy enough that they're not likely to host a huge party. So far they've been treating it very well and like being treated as adults by me. Every year at least one person renews the lease and fills the rest of the rooms with his friends so I don't even advertise anymore.

I'm mostly just adding to the chorus here but I would agree that simply moving the flowers would be the simplest solution. You say that they are not the kind of tenants to complain about minor inconveniences and I'm certain that calling the cops on their friends would change that in a hurry. Especially if you are living in the property, it's important to remember that tenants are just people. It may be worth talking to the kid who's friends are causing the issue. Let him/her know that the flowers are important to your wife and that it hurts you that they keep getting broken. I work with kids that age in my W-2 job and they are surprisingly reasonable when they feel they are being treated with respect. If that doesn't work, just move the dang flowers. 

 Good luck.

I use the Transunion smartmove version. You have the option of paying yourself or (what I do) have the tenant pay it. It costs $35 either way for credit, background, and eviction history. Tenants have found it easy to work with and if they get selected I credit the fee toward their first month's rent.

@Account Closed, I understand what you're saying about the current equity position. My question really pertains to future properties. I want to know how best to present myself to potential investors so that they can have their share of new bones with better meat (to stretch your metaphor.) 

Thanks @Don Konipol That's a helpful list. Is there a way of presenting that's preferred? As I said, I'd like to give them the clearest, most appealing records so that it will be easy for them to make their decisions. 

@Account Closed, 300K in Syracuse is pretty rare until you get into mid to large multis. If we ever get into the arena I'll keep you in mind.

Thanks for the mention @Will Chamberlin. @Andrew Mazur, Pebble Hill is a great area and you should have no trouble renting it out once you get it into shape. We manage our own properties so I can't help much on the management front but if you need recommendations for specific contractors I might be able to be a resource for you. 

I'm interested in getting started with commercial loans/private money and I'd like to go into the meeting with enough information to satisfy the lenders. I have an LLC with two properties, one that has been rented for just over a year and the other that has been rented for about eight months.

The first property we got for 85K with 20% down and it rents for 1200/month. It was assessed for 85 during the sale process. Debt service with all taxes and insurance comes to 630 which leaves 570 a month profit less capex and expected vacancy.

Second property we bought short sale for 78 with 15% down and it assessed for 110K during the sale. Debt service with taxes and insurance is 870 and we rent it for 1100 but pay an extra 130 per month on the principal right now to try and get the equity to 20% and get rid of the PMI. Depending on the metric that leaves 100 or 230 as cash flow before accounting for capex and vacancy. There have also been a few late fees that are in the income column but not many.

What other data should we bring when hitting people up to fund our next projects? What format is most effective for presenting the information? I feel like it’s all pretty basic but I know that I think about this stuff all the time and I may need to convince someone who’s new to it all.