All Forum Posts by: Jordan Rajchel

Thanks everyone for the response. I did have one other question. I was planning charge a $35 application fee to cover my expense of running the check. Is it typical to charge that fee per applicant on the lease? 

I was considering offering to apply application fee towards first month's lease assuming everything checks out but if there are more than 2 applicants that is pretty significant.

@Jason D. makes perfect sense to me. Thanks for the help!

Thanks @Alex Deacon I am definitely with you on the credit score thing. I've been saying 600 but if also letting people know that I am flexible there depending on the rest of the app.

On the income requirement. The thing is, she says the husband makes 3000-4000 per month as a truck driver. So he nearly has it covered on his own.

I am working on getting my first rental property rented out. 

I read Brandon's "The Book on Managing Rental Properties" and am requiring at least a 600 credit score. My question is, do you typically require that every person on the least have a 600 credit score?

I am also requiring income 3 times the rent which is 3600 per month. 

One woman responded that they had the income covered between, her, her husband and her son who lives with them. Was just curious, since I will need all 3 of them on the lease, shoudl I also require that all 3 meet the credit score requirement?

After about 6 months of listening to Bigger Pockets podcast and reading just about everything I can get my hands on, I finally got my first deal done!

Property: 3 Bed 2 Bath 1300 Sqft SFH

ARV: $120,000 (conservatively)

Purchase Price: $82,000

Needed Repairs: $5,000 Max. Really doesn't need anything other than a good cleaning and maybe some wall repair/paint.

Financing: $73,000 financed on a home equity line of credit through my personal residence and 9k from savings. Plan to refinance sometime soon into it's own loan, get cash back out and go do it again (BRRRR)

Expected Rent: $1100 per month. While it is not rented yet, it seems that it should be fairly easy to get this rate based on my market.

I found this deal on a Facebook ad of all places. I decided to text the seller asking some basic questions, not really expecting it to go anywhere. When he said he was asking $90,000 and it was comping for 120 or so, I started to back out, assuming that it would need at least 20-25k in work and after all other costs, it wouldn't profit much at all. When I told the seller this, he insisted that it didn't need any major work. His in-laws bought the property 6 years ago and did a COMPLETE rehab of the property. All Plumbing, Electrical, Mechanicals, and roof were completely redone/replaced at that point. So he caught my attention and I went and looked at it. Well.. he was right. It really did not need anything at all and is actually a very appealing home in a nice little area close to downtown. 

The owner's reason for selling was that his work was taking him out of town and needed to sell fast. So I asked him if the 90 was flexible if I was able to close in 2 weeks or less. He said "HELL YEAH" so my interest was peaked further. The next day I offered him 82k, he accepted. Inspections went perfectly and less than 2 weeks later we closed. 

Biggest thing this deal taught / reinforced with me was that money is not the motivating factor for all parties. While it seemed crazy to me that this guy was willing to sacrifice 30k (at least) in equity just for a quick deal, he was absolutely elated to have someone that could come in, take control of the deal (since he has never done it before), and get him out from under this house. He was still able to clear over $20,000 from the deal and we were both happy!

If I am able to get the 1100 per month that i expect then I am clearing the 1% rule by a good amount (1.34%) and I instantly have at least 30k in equity and expecting to cashflow between 2 and 300 per month. 

Thanks BP for all the great advice!

Rich Dad Poor Dad isn't really like Dave Ramsey. 

It mainly teaches the concepts of using money to make money. Like others have said it's a mindset shift from what normal "consumerism" teaches us.

I would say, personally, though that Dave Ramsey and this are good compliments. Dave Ramsey teaches how to get into solid financial position to be able to employ the concepts from Rich Dad Poor Dad

I just had some similar luck down here in Southern Indiana (New Albany). 

Closing today on a property that comps out around 120k in current condition. Was completely rehabbed 6 years ago, all mechanicals, plumbing and electric were redone at that time. House does not need anything major at all.

Through a "lucky" call to a Facebook ad, was able to get it for 82k. Will be renting it out for 1100 per month!

They say the best way to get good deals in today's market is to just be IN the market everyday. This one proved that to be true!

@Natalie Allen I would love to get their information if you can share! I am about to be tearing out and replacing about 50 ft of sidewalk in New Albany, IN.

I have a house under contract right now, looking to close in the next couple of weeks. 

I am looking for a good concrete contractor to tear out and replace a 3-4 foot wide sidewalk running along the house. Relatively small project. It is roughly 50 feet of sidewalk and approximately 4 feet wide, so let's say 200 sqft.

Curious to hear who you guys/gals use in this area. Thanks for the help!

I am looking at a Duplex in my local area (New Albany, IN). 

The asking price is $189,500.

Without doing much research, the ad says 1425 total rent to be expected between both units.

By my calculation that's only about a 5.5% Cap rate assuming 60% NOI.

This seems pretty bad, I seem to recall hearing that you should generally shoot for around 10% cap rate.

Suggestions?