All Forum Posts by: Kat Rathell

I wonder if listing property value, property class and coverage information would make it easier to compare...

Do other BP landlords pay attention to debt to income ratio of their prospective tenants? Say, really bad credit, but all past financial obligations paid off, and no loans, no car notes, no credit card debt, no debt, period, since paying off all debts? 

I tried Tenant Background Search, and liked it so far. It requires tenant authorization by sending the tenant an email. Interestingly, one of the tenants sent me a screenshot, and their side was the TransUnion’s Smart Move. 

I wonder if Tenant Background Search is a reseller for Smart Move - and it costs $10 less fir a full comprehensive report! 

We rented to a tenant with 1 prior eviction a few years ago after meeting them, checking other factors, etc. The logic was that that person would not want to have a 2nd eviction on their record - which would make them a persona-non-grata, except in the worst of the rentals. 

The risk paid off - we have had them for 1.5+ years with no issues. They are low-maintenance and pay on time.

Some landlords on BP file for eviction the day after the rent was due. You don’t have to have been delinquent for months to be evicted. 

I know a person with an eviction on their record after they moved out when their landlord refused to cure some very serious issues. They went to court to get out of their lease, and - despite the landlord being on the news as a ‘slumlord’, - they still lost (!?!). 

Look at all the facts.

That seems incredibly high for a property of this value. Isn’t there a county/city website that posts yearly tax amounts on each property?

Also, as far as I understand the tenants do - or can - get a copy of their screening report and reuse it at the next place they apply at if they aren’t approved for yours, within a certain number of days.

Is time of the essence with buying the SFR? If so, a HELOC usually is faster. HELOCs usually take less time to process than mortgages, and, unlike mortgages, they don't have conditions as to the condition of the property you are buying.

A HELOC has an advantage of interest-only payments for x amount if time. It means that you may be feeling less pressured to rent out asap or bypass necessary renovations, because you don't need to pay the full mortgage every month.

After your interest-only period of the HELOC is over, you may be able to cash-out refinance for the same conventional mortgage loan you are referring to, put the money back into the HELOC, or buy another property.

I am not sure as to your source of the HELOC, but check with your local credit unions - they can offer introductory rates of 1.99-2.99% depending on the loan-to-value of your home, and longer ‘draw' periods (interest-only payments) up to 5, 10 or 15 years.

Hope this helps!

Ok, we’re also pretty new (2 years into it), but here goes:

- when you check their employment, go to the source! I can not stress this enough. Don’t call their supervisor listed on the applciation form, call HR directly, via the phone number YOU find based on the business name they provide. They will ask for authorization, you will fax/email signed rental application, ask questions regarding their status (full-time/part-time), salary, position, etc.

We dodged a huge bullet on a prospective tenant by calling HR, turns out they were NEVER employed there.

Same goes for prior landlords - check property records of your city to confirm that the owner is the person listed, or call leasing office directly if it is an apartment complex.

Agreed - purchasing with a tenant has significant risks. It is nice to think you have immediate cash flow, but how do you know they will actually pay you and you wont need to pay for an eviction instead?

If you are hands-on and donyour due diligence, you should be able to get a new tenant in within a couple to a few weeks at the absolute max, and you will have peace of mind that the tenants will be good.