All Forum Posts by: Jack B.

I've seen it for almost every rental. Rentals ranging from 500K to 750K in value. 2.5 to 4K in rent.

People show up with absolutely atrociously misbehaved kids. It's always just ONE kid, never people with multiple. The kid will run and jump on furniture, jump up and down on vents, pull drawers all the way out to the floor. The parents do nothing to stop it. If anything they just look at me and smile while I glare at them.

One time the guys kid as they were leaving (this was after he proceeded to use my furniture and bed as a trampoline and chase my terrified cats) started to run to jump on the dinning room table. I was able to block him in time. The casper milk toast father gave me a disapproving look. YOU'RE IN MY HOUSE MF, YOUR KIDS WILL BEHAVE OR GET OUT.

 After donating 100K to get into "heaven" and buying 900K of paid off real estate, you have no money left for reserves...

None of my rentals are in the city limits, I'm in the suburbs of the greater Seattle area/King County. NO WAY in hell I'd ever buy property in Seattle proper due to the tenant friendly city council idiotic dead beat favor laws. You can't evict people half the year/winter or really screen tenants. You have to take scum criminal tenants. Ridiculous...

 None of my rentals are in the city limits, I'm in the suburbs of the greater Seattle area/King County. NO WAY in hell I'd ever buy property in Seattle proper due to the tenant friendly city council idiotic dead beat favor laws. You can't evict people half the year/winter or really screen tenants. You have to take scum criminal tenants. Ridiculous...

 I had that happen to me once. That lesson popped into my head with this hence the reason I posed the question to see if I'm being paranoid or not. I was desperate a few years ago, October, 1 month of vacancy. Professional tenants moved in...Luckily due to my lease structure and not being intimidated by them like 10 years of landlords had been I found out, I was able to get them out. The abandoned the property the day I served them notice. The drama kept on with threats for a few weeks thereafter, but I did not bow down to their threats as I had plenty of evidence to win if it made it to court. Eventually they got so dumb I stopped responding and they cashed what was left of their deposit. That's the lesson I've heard a few landlords talk about, better to let it sit empty sometimes, but alas....I am leaning that way, especially given the current environment and that hard learned lesson. That nonsense hit me while in grad school, a full time tech management job with long hours, and the sale and purchase of 5 houses and a few tenant turnovers hitting me, ALL at that same time I was dealing with that nonsense of the professional tenants. I literally sat on the floor preparing my case in case it came to it and told my gf at the time, I was out of steam. Too many problems at the same time. Luckily I made it through it all. Even graduated Cum Laude...

 Not to mention the stress....and the feeling of injustice in my stomach as a result of them living there for a while while evicting them. I have a good attorney recommendation with a 95% success rate on evictions. And WA has added a loophole for the eviction ban when they extended it: landlords who want to sell or move into the property may evict. Nonetheless, I've not had to do a judicial eviction yet, only serve notice and most bad tenants run...

That's exactly my thinking on this. I'm super hesitant. The reason I noted the domestic violence conviction was a woman was because it's super rare for a woman to get arrested and convicted. She also has TERRIBLE credit. Her and her fiance have questionable logic to begin with. Her fiance told me, when I asked, that her job is unaffected by covid, tradeshows are shut down due to covid. I asked her how she interprets that as unaffected by covid considering she just told me upon my asking, that she is unemployed due to covid, yet then tells me in the same sentence that covid does not affect her employment. To top it off, her fiance is a bartender...who when I called her employer, is on furlough until August 1st IF they even open. So they did a tad bit of misrepresentation...

I was wrong about the other guy. He didn't note job information on is application, but when I pressed, he showed me he JUST started a week ago at a new job...not even a first paycheck yet....So I have people with a mix of so-so and bad credit, violence, and 2 of them are unemployed, the only one WITH a job is so new to the job he hasn't even been paid yet.

They offered a higher security deposit, but I am still hesitant. I have more tours tonight....

It was slow in February and March finding a tenant for another rental, though I ended up with 5 qualified applicants and filled it before I had any vacancy. Now I have another  house vacant for 3 months and almost no qualified applicants, whereas the place has usually gone within a week or two to qualified applicants. People are coming up with 600 credit scores (mostly 550), pitbulls, etc.

I have one application that is comprised of 3 room mates (common). Two are on unemployment (1 of which also gets disability) and the third just started a new job just 1 month ago. Two of the three are service workers (bartender, trade shows). One has really low credit. None have great credit, 2/3 are unemployed but getting UE and 1 is brand new at his job. One has a domestic violence conviction (a female). 

I have no other applicants. I'm still hesitant to rent to them due to eviction moratoriums. I've considered a higher security deposit, and would be collecting first/last as usual. But it still makes me uneasy. Under normal circumstances, I would absolutely NOT consider them. But do I risk going into fall with it sitting empty? They do have verified unemployment income and disability income. One has a new job. 

I AM getting a flood of interest since dropping the price from 2,200 to $2,000. Much more so than before. 

I'm at a similar cross roads. It was slow in March finding a tenant for another rental, though I ended up with 5 qualified applicants. Now I have another vacant for 3 months and almost no qualified applicants, whereas the place has usually gone within a week or two to qualified applicants. People are coming up with 600 credit scores (mostly 550), pitbulls, etc. 

I have one applicant who is 3 room mates. Two are on unemployment (1 of which also gets disability) and the third just started a new job just 1 month ago. Two of the three are service workers (bartender, trade shows). One has really low credit. None have great credit, 2/3 are unemployed but getting UE and 1 is brand new at his job. 

I have no other applicants. I'm still hesitant to rent to them due to eviction moratoriums. I've considered a higher security deposit, and would be collecting first/last as usual. But it still makes me uneasy. 

No I understand the option "fee" I just said DP because I was in a hurry but it CAN be a DP, you don't understand that YOU CAN credit the fee towards equity in the home.  It's similar to earnest money. Yes, he has grounds to evict the tenant, because the tenant is claiming he owns the house. Do you really think he is going to magically give up and leave? 

Yes, it is common to charge a higher rent that goes toward credit of the purchase price. YOU are the one that has no clue what you are talking about AT ALL. On top of that you're practicing law without a license claiming that this is illegal when it is a documented fact that it is not in most jurisdictions.

Two of the MANY sources online that talk about this exact type of structure I mentioned. A guy who isn't an attorney yet claims my points are illegal, then chastises me for not doing lease options so I have no experience, yet you are not an attorney but act like you are, you sure seem to miss the irony...you have ZERO clue what you're talking about dude. I know how lease options work, which is why I said you collect money up front or charge higher rent with a credit to the purchase for part of it. I only said I don't DO lease options. I didn't say I don't know the ins and outs of them. I know all about them and how to structure them, even have contracts for them. I just don't DO them because it's a mathematically bad idea. Just like offering seller financing is by becoming the "bank". Returns are far higher when you OWN and HOLD real estate. It's basic economics. The guy made critical mistakes that I validly pointed out. He collected no money up front and he did not charge a higher rent. You CAN use the money as a down payment and you CAN charge a higher rent. 

https://themortgagereports.com/37221/simple-mortgage-definitions-rent-to-own-lease-option

• Option fee: an upfront payment that becomes part of your down payment if you complete the purchase (typically 1 percent of the purchase price)
• Rent credit: additional above-market rent paid to the seller, which becomes part of your down payment if you close on your purchase (typically a 10 – 15 percent increase over market rent)

https://www.daveramsey.com/blog/how-does-rent-to-own-work

Rent payments. As part of the contract, you’ll agree to pay a certain rent amount each month. These payments are typically higher than rent prices in the area because a percentage of each payment is set aside as a credit for your future purchase of the home.

Option money. You’re required to pay the seller a onetime, nonrefundable fee. This gives you the opportunity to buy the house, and in some cases, the seller will agree to put this amount toward the buyer’s equity in the home. There’s no standard option money amount; it’s typically a percentage of the home’s purchase price.