All Forum Posts by: David Hutson

Alex, 

Great question.  Out there, with my small number of properties, I haven't been able to get the small repairs, even the repairs that are clearly the tenant's fault, paid by the tenant and it's from several PMs that I have had this happen.  I feel that the PMs would rather charge the owner and get it taken care of instead of taking the extra time/work to contact the tenant and go after them.  It creates issues with the tenants because they don't want to pay for it and out there may be enough to make a tenant move.  I do understand it's a small amount but multiply it by 10 properties a year and it quickly adds up. 

In CA, for the homes I manage I am very clear to tenants up front when I'm walking them through the lease that minor repairs, clogged pipes, issues that are clearly their fault are their responsibility.  I'll send my vendors out to hopefully get them a better price and ensure it's taken care of right away but they are responsible for the bill.  I do tell them to call me as I do want to know about the issues.  I am very clear that I do not want them to fix things around the house themselves.  95% of the time the tenants will make it worse.  I have had a few tenants that are electricians or had family members that were plumbers and in those cases I'll use them and give them a credit. 

I did read the article from David above.  I would never do anything like that.  If you don't get the calls from the tenants and they finally call you it will be really bad.

That's a great question but there are many very good zip codes.  You would have to give us more info on what type of property you are looking for, what class of home, age- buying new or older, desired returns, price range...  I own a handful of homes there and fly out there and get my feet on the ground to see what areas are good.  I'm flying out again in two weeks, which I strongly recommend for a first-time investor.

Provide more details and you will get many responses.

@Sharaya Rutherford,

Congrats on your deals.  I am in the Army also and in the process of getting my license.  I am an investor though and deal with the same things.   My best recommendation is to treat them right even if their are issues with the deals.  If you are staying in the area then once the sales are completed ask them to give you honest reviews for follow on referrals. 

Hope they both go smoothly for you.

David

Lane,

I'm in the same situation.  Trying to buy more houses now with 10 mortgages.  I think pulling teeth is easier than finding someone.  I'll post here if I find anything reasonable.  I'd be interested if anyone else finds a good resolution.

I would rent it out to one of the other groups of people or families.  The initial group should need to be reevaluated to determine whether just two of them can qualify on their own.  Then they could get another roommate in the future. 

The reason I would look for another family is that you will often have one person wanting to move out or they don't remain friends and then have issues.  I tried it once and it didn't end well.  At least with a family they will all move at once and won't try to get out of the lease individually.  That can be good or bad but I wouldn't let a group of three move into any of my properties again.  It's not worth the individual turnover when they fight or one wants to move out.   You would need an updated lease, qualify the new renter and so on.

Good luck.

I would get all leases and deposit history, if you can get it, for the tenants. Then look at all other bills, such as common area expenses, such as hallways if interior and lawn maintenance, utilities, taxes and insurance. If the owner is willing to give up portions of their tax returns, depending on whether it's an individual, LLC, ... get what you can.

Alex,

I like that you are doing this.  It helps owners see what the market is like and gives us a real estimate of how long it may take to rent a home.  It also gives us an idea of the FICO scores to expect with the homes you rent.

Evening Sam,

I have used Bryan Ratcliff a few times.  He does investment property sales and has been selling there for years.  BP won't let me post his contact info but if you google his name and Memphis I'm sure you will find it quickly.

Anthony,

I have dealt with Rent to Reward.  They have been good to me so far and I like their properties.  They guarantee the turnkey homes they sell for two years and guarantee against the tenant moving out for one.

Send me a message if you have any specific questions.

David

The inspector called me that morning telling about what time and then again about 20 mins out.