All Forum Posts by: Larry K.

I echo what Jeff S. said. Credit check, pay stubs, background check, 1 1/2 months security.

My tenants did not have good credit but that is why they are renting and not buying. This could also lead to them being long term tenants. So far they are working out fine.

Let's just put on the side for now other buying strategies. Right or wrong, at this point, the MLS is my strategy.

I have one deal under my belt. Bought, Renovated, and am now holding. This buy and subsequent renting was done with this Realtor. This Realtor sends me auto-update listings which is one of the reasons I'd like to use only this person.

Now I am getting ready to buy again and I just get the sense that there are a lot of games and pocket listings that go on in this business. There seem to be too many "no's" early in the process from the listing agent. I'd really like to be loyal to my Realtor based on the belief that she'll be able to "get me into anything that is out there" in the Realtor world. I am becoming skeptical of this and am wondering if I should also build direct relationships with the few core Realtors in the area who seem to be getting the listings.

As I have heard, traditional lenders (banks, S&L's) want you have a W2 to refi a rental (ie long term 30 years, 75 LTV, 5% at this point in time).

What are your options if your employment situation changes? There would still be income just not fully employed by one company. More like consultancy where there would still be documented income. Would a traditional lender still be OK with this or would I have to find some other way?

Thanks!

Jon Holdman

I am intrigued by your advice to use a MTM lease rather than yearly.

Perhaps I will do this with my next tenants or when the current lease expires.

Could you elaborate on the upsides and downsides of both?

Thanks

The 2-family I renovated and am now holding was the only one at the time.
Working full time in the city with my buys in the suburbs it is hard to imagine doing more than 2 at a time. I suppose if I had a full time job where I was more "in the field" or closer and could stop by I could do more.

If mean truly custom then

1. Hire an architect/find a site
2. Bid the job out to GC's

About $700 for a 2 family NOO

Put in your own real numbers for expenses and use the 50% as a guide

Case Schiller are the best to follow. They track the sale of the same house over time. NAR uses the average of an entire area. Case Schiller is much more reliable and best of all, unbiased. Thank goodness they are out there doing this.

I only have one 2-family. I am managing it myself. It does not seem to be too much time. Also I suppose I would have some trouble in trusting that the PM I hired would be totally professional for such a small property. Not sure if I want someone else between me and my tenants and the property.

Besides, if the tenant calls with an issue it just gives me a chance to check up on them.

But if anyone knows of a good PM for these types of properties in Northern NJ please let me know. I plan to grow, so in future hiring an PM might be the best way to go.