All Forum Posts by: Chris B.

As those above mentioned, its lack of trust commiting to a PM company you don't know and have a lot to loose from.  I personally would consider a longer term contract after I had direct experience going through a turnover or two and if there was a financial advantage to a longer contract.  I self manage so these are my concerns as a person who would be a first time PM client.  I have personally heard many bad stories from friends of PM issues and not many good stories so I'm content as-is for the moment.  This is another reason why I joined this site: to learn the industry including recommendations for good services and companies and recommendations for those to stay away from.

I'm right at 3 properties now including my primary and its not in an LLC so thanks for the additional suggestion. What would happen to a HELOC if I purchased additional properties after I obtained the HELOC? Would they cancel it / prevent additional funds getting taken out?

Thank you both for the recommendations.

Through a lot of mistakes, I've developed the following process.  I know it seems to be different than what a lot of others around me use but this is what works for me:

1. Advertise where you like.  I used Zillow last time (Free in AZ) and the post was automatically populated to their other sister websites so we ended up getting interest through multiple sites, but Zillow its self was the most productive.  I posted a nice inviting description of the home and pointed out some of the best features and then I added requirements.  Also include nice pictures.  The pictures make a big difference.  My requirements were credit score of 620, must have combined income of 3X rent, no smoking or vaping anywhere on the property and, a small dog over 2 years old and under 20 pounds would be considered with additional rent. Zero application fee and candidates who move forward will need to pay for a background check $40 each adult.  We will consider those with lower scores.

Naturally higher income is better and I think I won't be including the line stating I'll consider lower scores in future advertisements because I got a lot of unqualified people express interest.  I also have more requirements and desirable qualities I don't publish.

2. I set up Specific days and time slots when people could come over for viewing the home.  Basically 3 hour open house slots in the early evenings on Friday and Saturdays and possibly one on a Wednesday if there is sufficient demand.  Many people cancel when you make specific appointments for individuals so this has worked well for me.  I hand out paper application forms or email them to whoever is interested.  I also have a conversation and ask questions and get a basic feel for them.  Maybe 20% at most return the completed forms.  It pays to be blunt stating that you aren't really interested in choosing applicants that don't meet your requirements.  I don't do Section 8 either.  Many people have bad credit histories.  Several others have large dogs like multiple 100+ pound rottweilers.  I let them know that isn't going to fly.  Of the applications I get back, they tend to mostly conform to my requirements.

3. I review the applications I receive.  I choose the best looking or decline them all if none are good.  If I choose to move forward with an application, I call the applicant and clarify and verify information.  Then in my case I used the Transunion background check service which showed me a credit score and a lot of other info such as past payment history and all the other info you would expect in a background check.  Te applicant pays for the background check when they log into the site.  I don't have to pay for anything or do the data input.  I receive an email when its ready and go take a look and save a copy.

4. Then I verify anything that may be needed... employment, past rentals, bank account holdings....

5. Then if it checks out, I meet with them, sign a contract and collect the deposit in full and first months rent before I hand over the keys.

I see the majority of rentals around me charge an application fee which I don't.  I assume this helps provide some filtering of those serious and those who aren't plus some minimal income that helps offset the assessment time involved also.  I may consider this in the future, but right now, the applicants pay zero until we have reviewed the application and are seriously considering them.

In your case, you are already half way committed it seems.  You can move forward and hope for the best.  The one financially stable element may help make sure the rent is paid.. or after a few months of living with him she may decide he's not the right one for her and they separate and then you need to deal with that.  She has the finances to move on and he doesn't have a job and can't go anywhere.  If you are financially tight right now, you may need to go with this.    If you have the financial buffer, I'd opt to keep looking for a new tenant.

If it currently looks reasonably freshly painted or you can do some touch up to get it there, most renters won't care. I just recently rented out a SFH that originally had 12 year old beige-brown-peach color for the walls, ceiling, and trim which I repainted with my wife to SW Accessible Beige walls, SW Alabaster trim, and SW ceiling white. It took a lot of paint - 35 gallons and a lot of time. Might use a pro next time unless I feel up for some punishment. We were able to raise the rent 24.8% over the last contract we signed about 3 years ago and didn't raise rent in those 3 years so there is some appreciation in there too, but I feel the paint played a big role. Also the other rentals in the area mostly have modern paint schemes. I wouldn't do this for a C class or lower rental.

I agree, you have provided too much unnecessary information.  If you posted this much information about me on this site, I wouldn't be happy.  Sure, I don't know who they are, but if someone on this site knows you or them and can connect the dots... too much information.  

With that out of the way, heck no I wouldn't rent to them.  12 years of landlord mistakes has honed that point.  Bad credit = not renting to you.  My minimum is 620.  I've had serious problems with 80% of the families I have rented to with lower scores in my past.

This site has a deal analyzer app that you can get a few free uses of. Take a look there in the tools section as this may be a good start. Once you look through the tool, start asking specific questions on aspects you don't understand. In my case, I'd like to fix and rent so I would use the BRRR tool.

I have a washer and dryer in my rentals here in AZ. Standard, nothing fancy models. Not coin-op. I don't think coin-op would give a good impression in a SFH. It may be difficult in your location after a flood, but around here you can find a perfectly good used set for $300 - $400 pretty easily. I've found the lifespan to be pretty random, so a good used set is as likely to last a while as a brand new set. Just make sure it looks decent and of course works well.

I'm looking to get a HELOC on a rental property I own in Maricopa county, AZ to finance additional investment property purchases. I'm just getting started looking for a good HELOC lender and will likely start with locak banks, but I figured I'd ask if anyone has any recommendations. I'm looking to line up $100k to $200k. Thanks.

It sounds like its not a water issue at all and is an drainage issue.  If the sewer is clogged, waste water is backing up and overflowing from the sound of it.  It should have nothing to do with the copper.  It sounds like you need to have the sewer lines cleaned as something is stuck in there.  If its graded incorrectly, and the sewer lines are not new, then this should have been an ongoing problem in the past.