All Forum Posts by: Account Closed

@Beau Pearson from everything I've read here yes on application fee for both. Though I think most LL's don't call it an app fee. They just have the prospect pay for the background/credit check. And it would apply to anyone over 18 wanting to live there.

@James R. Copeland did this tenant pass standard screening before moving in or were they inherited? I feel like if you had met them while showing the property you may have seen some red flags, or they fell off their rocker recently. Or maybe now in hindsight you know what to look for next time.

Are you looking to stay just outside the city like Darby? That's a C/D area. I'm from Delaware County and looking for but and hold too. I'm not comfortable in that area though.

I think it really depends on the area of the property. See what other rentals in the area have and their rents to be competitive. Don't assume you can upgrade and charge for the premium if your area doesn't demand it. My B/C+ area is all laminate floors and Formica counters.

@Brian Bandas That's great! It's nice to know that confidence in the numbers does the trick!

@Jennifer Cheu Go for it! I'm all about learning on the job. If you can afford the time, take your time and learn. Sub out the important stuff like plumbing and structural. Or try it yourself and have a pro check your work. It'll cost you a little for their time but cheaper than contracting out the whole project. Safety is key so if you don't trust yourself, don't do it.

@Blair Boan I have no deals under my belt yet but have seen others post on this.  For your reserves I'd make sure you have at least 6 months saved for all debt servicing and expenses before doing anything fun with your excess reserves. Then maybe consider saving the excess for the down payment on your next property.

I'd also say it all depends on you goal/plan. If you're looking for cash flow then that will be more important than COC. If you don't want to tie up too much cash than COC is a better gauge than cash flow. It's all personal and whatever works best for your plan. As a newbie with no capital I'm not too concerned with COC but looking to stay above 8%. I'm more concerned with cash flow at least $100/door.

Hope this helps. Good luck!

@Joe Villeneuve Thank you. Constructive criticism and observations are a great thing. I'm here to learn from people much smarter and more experienced than myself. I will look into more comprehensive market analysis and that should make me more confident in my numbers.

You should also still account for a minimum 7% management. You may be good self managing right now but if you grow in 5 years and want a property manager now you're in the red. I plan to self manage too but always add a conservative 8-10% management. I figure if anything I'm paying myself and that extra buffer makes me feel better.

And yes, I've noticed in my own analyses that there are times the numbers only work at half asking price. I think some people are unrealistic and emotionally attached. Unfortunately that's why some properties get into such disrepair and end up being bulldozed. I love old homes and hope someone can save that Victorian.

@Chrissy Ertz That was my thought too. Which leads to my question... Can you have a clause in your lease that tenants cannot run businesses out of your property?