All Forum Posts by: Frank Geiger

Doesn't sound like you have an issue finding potential tenants. You are getting feedback on the way you designed your screening process. 

You want the tenant to invest their time and energy into an application for a property they haven't even seen. IMO let them fall in love with the apartment, then go about the screening. 

You forgot property management. Repairs and CAPEX look a little low. Closing costs are a little low. Looks like it will still cash flow after some adjustments. The CoC at 6% isn't the best but depends on your investment goals.

Sounds like an opportunity to me. Most people run away from those problems. But a small mold issue is not anything to stress about.

Insurance is pretty cheap. I always get it.

If it has already been treated and no activity was found, why would you have to treat it again? The inspector will identify if there is activity or not and their recommendation.

Buy properties in good areas that have cash flow. You won't get as much cash flow but you'll get better tenants (for the most part) and a chance at some appreciation. 

They should provide receipts for any work performed on the property. There should also be a clause in the contract stating something along the lines of, "Management will not charge for repairs in excess of $150 without the consent of owner."

You won't get a mortgage without proof of income. You have to claim your income from rental properties or whatever business income you may have. If this is your first property, you may need to find another job or get real creative.

If you want a business focused on the real estate industry, I would probably start with getting my license or buying a rental property and worry about marketing and stuff later. You need to get started before investing tons of money in a business.

A HML wants the investor to have skin in the game. The lowest you will find is probably 10%. But as a new investor, expect more like 20%-25% of all in cost. It isn't a low downpayment method because they know you can't get a traditional loan with the bank and properties in this condition have much more risk. Also, their lending will depend on the appraisal for the ARV.