All Forum Posts by: Mike S.

Question, are you not able to qualify for conventional financing? 8% is ridiculous.  Disagree with the other post on taxes and vacancy are not too high.  Vacancy may underestimated, turnover prep in this area is going to eat you up.  C class is generous.  I think your report is optimistic, but that's just my opinion.

I would never use a PM, but I think you really need one. You've posted several things that by themselves are no's, but you're soliciting reasons to accept them? Get an objective professional to screen your rental.

I'll have open houses for people I've screened over the phone. "I'll be there 2-4 Sunday." I don't have time to waste on unqualified renters let alone a whole group of them.

I raise rents every year on all my properties. My average renter stays 3 years and I have one whose going into his 5th year. I usually raise it anywhere from $15-$25 as a minimum depending on the property.

Typically any well written lease will have the joint and severally clause, so yes they are both responsible for the lease until it ends. The clause also means you can collect from one or the other or both as you see fit and doing so does not relieve one or the other of the obligation. One thing you don't want to do is return security to the one who is leaving. Security remains with the property and any settlement is between them. At the end of the term any SD settlement will have both their names on the settlement check unless I get a signed release from the one leaving. At no time should you have to track them down to settle the SD.

Originally posted by @Joe Villeneuve:

Originally posted by @Mike S.:

Originally posted by @Joe Villeneuve:

Originally posted by @Mike S.:

The best way to do this is, is a lease with option. Option price 2-3% of agreed sale price, half option upfront, half option added to rent over 2-3 year period.

The statistics show that the follow through to actual purchase is close to zero. For that reason, some classify it as predatory.

 ...and you'd be inviting disaster by mixing the OC with the rent.  They are separate agreements.  You just turned your LO into a LC, and risk all of the rent being credited towards the purchase.

On top of rent, not added to rent.  Option money is separate.  All option money is non-refundable and applies to down payment if option is exercised.

You mean two separate checks every month?  Not sure that makes any difference if it gets credited towards the DP.  Actually, I am sure.

 A lease with option contract specifically separates these items.  Rent is the rent, option money is the option money.  You're renting with the option to purchase.  It's the very reason for this type of contract's existence to keep it from being muddied like a rent to own situation.

Originally posted by @Joe Villeneuve:

Originally posted by @Mike S.:

The best way to do this is, is a lease with option. Option price 2-3% of agreed sale price, half option upfront, half option added to rent over 2-3 year period.

The statistics show that the follow through to actual purchase is close to zero. For that reason, some classify it as predatory.

 ...and you'd be inviting disaster by mixing the OC with the rent.  They are separate agreements.  You just turned your LO into a LC, and risk all of the rent being credited towards the purchase.

On top of rent, not added to rent.  Option money is separate.  All option money is non-refundable and applies to down payment if option is exercised.

Originally posted by @David K.:

Also, last I checked, I was under the impression every state required hardwired battery backup smokes. The battery only type unit is a home owner solution. 

New construction. I imagine there are some jurisdictions that require rental properties to retrofit.

Originally posted by @Tim White:

@Mike S.

Thanks for the correction.  Where do you find your statics? 

Arsenals own websites and from renting to several military families. On base, there are 7 housing communities, and there are barracks for single and temporary soldiers, and child care services.

The best way to do this is, is a lease with option. Option price 2-3% of agreed sale price, half option upfront, half option added to rent over 2-3 year period. The statistics show that the follow through to actual purchase is close to zero. For that reason, some classify it as predatory.