All Forum Posts by: Christine Smith

Go with your gut. You’re asking about things that are unknowable at this point with these applicants. 

Right now we have a tenant with two dogs and they’re angels. Our last tenant had one dog that destroyed our unit (literally ate through walls and flooring). 

Just take @Dustin Allen‘s advice about a pet deposit (we do $500 for the first, $250 for the second dog). Ours is refundable if there’s no damage. 

If you have a good relationship with a small local bank, have you inquired about a portfolio loan?

Following. 

@Jeff Wong we're in a similar spot and looking at AZ.

Hey Everyone,

I'm trying to make sure I'm not leaving anything out of a buy and hold proposal I'm going to run by a potential partner. Can you let me know what's missing, incorrect, or left out? Thanks in advance!

Goal: Use OPM to cover downpayment. Then cash out refi to refund partner's cash down.

PP: $285k on SFH

DP: $71,250 (25%) - comes from partner

Mortgage: 3.5% at 30 years

Rent: $2,100/mo

Expenses (incl. cap ex., vacancy, etc.): $1,791

CF: $308

Plan: after 6-months, to cash out refi on the property with a 5% interest rate to buy out the partner. So partner would make $3562 (5%) on their $71,250.

Cash Out ReFi: 3.5% at 30-years at 70% LTV (assuming no appraisal increase) = $199,500. (<---- this is where I get real uncertain and feel like something is off.)

Payback Partner: $74,812

Leaves me: $124k

How are the numbers?

Should we co-sign on the property at purchase for legal clarity of ownership, then how would I qualify for the balance on the refi (I'm self-employed with a lot of deductions)?

Any other thoughts, questions, ideas?

Thank you!

All great advice above. Great photos always set you apart, especially if the place is in good condition. 

I’d stage one room, including fresh paint and nice furniture, etc. Then use photos from that room to promotes others. 

Also, make sure what you’re offering is what you’d be comfortable living in yourself. It sounds like it is, but always double check that before renting out. 

Lastly, when thinking of the competition and getting great tenants ... think about where you’re advertising. If you’re near a hospital think of listings to travel nurses where you can get a slightly higher than average rent/room. Or by a university? Get listed on the school’s online classifies. Or, list as a long term rental on Airbnb. 

Best of luck! And if I can be of any help don’t hesitate to let me know. 

That's a great lesson. Thanks for sharing!

Hi Yezenia, we put everything in the lease. As the live in landlord that's the only thing that's enforceable. And it establishes that we're not roommates cohabiting a space together that may have equal say on all things. So we don't have rules posted anywhere. If we had over 4 rooms rented, we may do that as a reminder of what's in the lease everyone has signed.

For guests, we have a no overnight guest policy. We've had trouble with that before (suddenly acquiring a new "non-paying tenant" because the actual tenant's boyfriend was there every day/night). So now we don't allow overnights. It does limit who's willing to rent the rooms, but overall we deal with less drama because of it.

For kitchen, the lease states they have "light" kitchen access. This is outlined to mean quick meal prep and cleanup before the end of that day. They also have designated cabinet space for storage. And their room has an apartment sized refrigerator so they store their own food in their room. 

Hope this helps! Let me know if I can answer any more questions. :) 

Hi @Nathan Reed! On the management fee - I would say it depends. If you're planning on living in it for several years, will rents increase enough to cover the fee once you move out? Then no need to include it now in your research. But if rents are stable or decreasing, include it. 

Also the number of "doors" you can rent should influence how much wiggle room you have. If you only have 1 room to rent, then Id' recommend being more conservative in your numbers. If you're looking at a 6 "door" rental hack then you'll have some more leeway. 

Let me know if I can help any further!

Hi @Jacob Payne! It may be slow in that geographic area. But if you can be a little flexible with neighborhood that might grease the wheels on finding a deal. Can you search / buy in a neighboring city, or even community within the city?

Without numbers it's difficult to give more specific advice. But I've found that if I can be flexible on location more possibilities open up - even without going too far out of my area. 

Do you have a question?