All Forum Posts by: Donny Random

I would suggest buying their book "Every Landlord's Legal Guide" that has all the landlord forms you will ever need for free on cd for just $30:
http://www.nolo.com/product.cfm/ObjectID/A5659B5E-99B5-455F-B162622144C09F45/catid/5944A0DA-71B3-49EA-BF5D300558FB66A9/213/178/

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I have bought a new duplex in an area on the edge of a college area. In reality it is just outside the accepted distance to be advertised to be in the college area. The area has been depressed for 20 years. I have recently read that a 146 unit student complex is going to be built one street over. Should I expect more student tenants because of this? That is, the complex extending the accepted boundary of the 'college area'?
Opinions?

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Bartstop-

Thanks for sharing your flyer, very helpful! :D

Originally posted by "Bartstop":

I gave up on Craigslist, way too many no-shows. I have found putting a "INFO TUBE" on the "For Rent" sign works much better. That way I don't have to describe the property and explain the screening process to every caller. They're only $10 at homedepot and you can make copy's of your info sheet at most grocery stores for 5-10 cents a piece. You'll waste that much in gas with just 2 no-shows.

Here's an example of our info sheet:

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I think if you are wanting to do duplexes and triplexes you will do fine with students. If you were thinking houses, would be much harder to keep them from going crazy. Ya know with multi-family the person next door will hopefully rat out people that are throwing parties because of the noise. I had that happen. I had college freshmen/Graduate students on either side of a duplex. The freshmen had a weekend long party. None of the neighbors in the house next door said a word about it (I gave them my phone number previously), but the graduate students let me know. I told the freshmen that they would be evicted if they had another party. No problems from them since.

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For those that do their own tenant screening, how do you evaluate a credit report properly? Do you just go by the FICO score or do you also factor in negative tradelines?

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For those that own rental property, do you use an accountant or a computer program like Turbo Tax to do your taxes?

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Member MikeOH is the main proponent of the 50% rule on this board. He is a very frequent contributor so a lot of other members have adopted it.
I believe that he rehabs in order to achieve this rule on low income properties and it works in his area. I have never heard of the 50% rule until I came across this forum, I don't think you are going to find data outside of this form.

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Anna, buy the book "Every Landlords Legal Guide" at www.nolo.com.
It will be very beneficial to you in the future.

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Thanks for the help! :mrgreen:

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Putting down 50K and getting $50 a month? Run for the hills!

Originally posted by "aly0705":

Hello - I'm particularly interested in this topic as I'm under contract for a single family rental house. Purchase price is $225K, but the inspection revealed enough issues for me to request a $5K - $7K credit, since the seller refuses to fix anything.

Assuming he agrees to a credit, price is now $220K. I'm putting down $50K. The house is in central NJ. The rent is $1750. Tenant has been there 3 years, perfect payment record and has signed next year's lease. Taxes are $4400 a year, insurance is $1060. I'm estimating $200 a month for repairs, including water/sewer ($100). Tax savings the first year would be $1450. My boyfriend and I are willing and able to do most repairs except plumbing/major electrical.

If the seller refuses to credit anything, I will walk.

Using the investment calculator at goodmortgageDOTcom, cash flow would be $50 a month. The deal doesn't come close to the 2% rule. I don't know how any house would in this area. It's going to be a long term rental, my first one.

I've gotten input from other property owners ranging from "if you're breaking even, you're ahead" to "the 2% rule must apply or you'll die". Mint condition comps in the area are about $260 - $270K. This is the worst looking house in a decent area where most houses are rehabbed.

Thanks,
Aly

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All Forum Posts by: Donny Random

Donny Random has started 22 posts and replied 107 times.

Post: Rental Agreement Form

Post: Student Housing

Post: How far in advance do you give out the address?

Post: Student Rentals

Post: Screening Tenants

Post: Tax Poll

Post: Where does the 50% rule come from?

Post: landlord's illegal entry now wants to evict me

Post: busted vinyl window

Post: Here are the numbers. Please help me improve!