All Forum Posts by: Kurt Gardner

@Karyn T. as a matter of general protection, we only rent m2m.  No lease.  It doesn't offer us much more coverage, but it is some.

You worked this out smartly, you do want them gone, and it's a shame you did a favor and now feel like you might be doing a "wrong" thing.  I feel you.  The good thing is, you seem to have a spine, so I won't worry about you letting yourself get bowled over by this person.  They feel threatened because they are facing the real probability of being homeless.  That would shake me certainly.

Draft that nice letter, honor your suggested option of first option if you want to sell, (integrity matters whether in writing or not), and if you decide to move back in to your home prepare yourself for a few dinged walls and stained floors!  

I'd sell and do like you suggested and buy several rentals.  Second option, I would rent again at market value.  I don't believe there is any way your current tenant will pay the increase, so selling will be the easiest option once you go m2m.

Blessings!

@Wendell De Guzman - safety is a primary concern, indeed.  We are not quite at the property manager stage, and when we do get there, I have already resolved that our identity becomes as shielded as possible from that point forward.  It isn't so much as it would become more important at that point (or based on a higher probability of a crazy one signing up), it would be more of a realistic possibility and benefit of that arrangement.

FYI, my wife is no snowflake, and she has the means to defend herself in the event of a meanacing trespasser at our home.

"...that door you kicked in was locked for YOUR protection."

@Richard M., @Andy Webb, @Yvette M., @Percy N., @Nicole Clemens - great answers and some interesting findings about the state laws regarding requiring a specific type of payment.  I'm curious if "payment system" means a METHOD OF PAYMENT or a system that is mechanical/electronic/automatic, etc...  In other words, if a tenant pays with checks that consistently bounce, would requiring cash be considered a "system?"  What about money orders or certified checks...those are "processed" and would require another type of system to produce.  Just curious really...

I had no idea about a "deposit only" atm card.  That is intriguing and something I will look into (now I wonder if THAT would be considered a "system."  Semantics...haven't we all been killed by them at some point!?

Great answers and wonderful advice.  

For those that are allowed to require electronic payments, is this something you would disclose to an applicant like the allowance of pets or smoking, or after they have been qualified?

@Stephen E. - Thank you for the story, and I'm so sorry you had to endure that kind of torment.  We've had one bad tenant, and even though she chased her own daughter around the front yard with a hammer, she never bothered us.

Post application, I feel fairly good about our tenants, and that really isn't so much the impetus for this thread; it truly is the pre-screening process.  We use a TPV that does a criminal and credit background check and makes recommendations.  We follow their suggestions so as not to be accused/guilty of discrimination.  It doesn't hurt that the $50 application fee tends to screen out a bunch of ne'er do wells from the start.

Moving forward I believe we will no longer provide our home address on any general correspondence or business form.  I am going to investigate the electronic options for payment a little more. @Yvette M., @Percy N., @Andy Webb you suggested you use electronic means...how do you handle pushback from prospective tenants who prefer to give a money order or pay in cash?

I have a google number and have considered using it for business.  I tend to agree with the comments regarding searching and finding info about me.  I know it would be easy, and frankly, I'm not going to live the paranoid life where I hide from folks just because they may be crazy.

I do want to be somewhat isolated from the torrent of inquiries and pesky annoyance callers.  I can always redirect calls by passing out a new number and blocking each call that I do not want to receive.

It seems at this point that the majority of you use a separate phone or address or both.  I will probably go with the new cell number, and consider the electronic banking option as a requirement.  Regarding applications, I may require Internet only going forward.  Thank you for all the comments, I'll pass these ideas along to the wife and ease her mind!!

My wife has expressed concern about allowing people who are applying for our properties to know our home address (to send applications when they need to be mailed).  Even tenants who pay for rent know our address so they can mail the payment and she is a little uneasy with that.

My response is our business is registered to our home address and I've never really thought about having a P.O. Box or other because people could find our address with a basic search.  Eliminating that option is possible to a degree, but would take effort I'm not sure is worth the hassle.

Her concern is what if a "nutter" gets mad at us and wants to take it out at our personal property? I'm not that concerned, but it is a reasonable question and I promised I'd ask the experts.

To make it a "two-fer," how about phone numbers?  Do you provide your personal cell or a separate business number?

Thank you!

just to be clear...we're talking about bidding as investors on HUD homes that are in the "extended" period, right?

I love the numbers and quotes you guys are posting about how many you've closed, and I'm amazed at either your constitution for working on homes that must be pretty tore up, or how you've managed to get such a great deal on a home that made it past the "exclusive" period.

Is it a price range thing? More homes move into the extended period because they are in a $150-200k range versus a $50-100k range? Most owner occupants can't afford a $200k home that needs rehabbing? Is it just a market thing? Your area has more homes than buyers? I live in the Midwest and almost all of the reasonably purchasable HUD homes are gone before the end of the "first look initiative." Am I so naive believing that all these purchasers are ACTUALLY occupying the homes, or is there something I'm missing about the requirements?

Bought a couple, but they were scarce as hen's teeth!

YAY!!!! @Mindy Jensen (er, uhm, biggerpockets.com) is the bomb-diggity!!!

I may just have to put "bomb-diggity" in my keyword alert now...use it liberally friends!!

@Jonathan Li - I had to evict once.

It was painful.  Looking back, I did the best I could and I have since taken steps to minimize future pain.  One thing that is moderately helpful is we only rent month to month now instead of a yearly lease.

I also paid a lawyer who specializes in the process.  I advise you do the same.  It is money well spent so you do not make a mistake or have the burden of filing and appearing at every instance in court.

You pay for insurance in case the place burns down, you pay for a lawyer in case they won't get out.  Take your medicine, learn your lesson, and get a better tenant (perhaps improve your screening process as was suggested in an earlier post - we use a third party verifier and the prospective tenant pays for the application - that alone screens a bunch of riff-raff from ever applying).

Blessings!

@Cam Jimmy - while interest rates are so low, mortgages are as close to "free money" as you can get.  I go with the longer term loan, take the highest amount of cash flow possible and use that for investing in other ventures.  Once I feel "maxed out" with investments, then I'll take that cash flow and buy down my mortgages (reduce principle) so I own them free and clear (or i'll sell them and upgrade the property type).

I am assuming you have leverage on your "holds" (<75% LTV), and you are interested in acquiring other properties.

The key isn't deciding whether you want cash flow or to build equity.  The key is analyzing how to maximize both at the same time based on your business model and long term goals.

Run your numbers and settle on a plan that works best for your needs and stick with it.  You've been given great analysis in the previous posts already, go for it.