All Forum Posts by: Michael Craig

@Justin O'Malley if the numbers make sense and you have enough savings for closing costs and roughly $5,000-$7,000 in reserves, you should go for it. You're young and it's your first property - this is how you will learn. Just be sure to buy based on numbers and not emotion.

@Bill S. brings up a good point about 401(k) loan terms, just be sure to abide by them so you do not pay fees/penalties.

@Kate B. FHA all day. Probably the most competitive rates you can get plus with 20% down you will not have a PMI. Look into an FHA 203k loan if you are considering financing the renovations.

@Charlotte Szynskie Nathan G really knows his stuff and is extremely helpful! 

The main criteria I look for are:

- Household monthly income is 3x greater than rent

- Credit Score is above 625

- Clean background check, no previous evictions, felony's etc.

I spell this out on the application and listing to ensure only serious renters apply.

@Nathan Gesner big help thank you. I spoke with my insurance company and they said under my current policy, the tenant will be covered if anything were to happen to him while he was snow blowing or mowing the lawn. I will keep his work limited to these two tasks and handle the property management.  Thanks for the input!

@Joe Splitrock he is more than capable. Thanks!

@Joe Splitrock very helpful. Do you see any liability concerns since the tenant is not insured? 

@Lynn McGeein I actually thought about the liability issues and the only way to protect yourself would be to hire an insured professional - making @Frank Geiger comment null. @James Ma I looked into hiring four different snow removers, 2 of which cannot get their plow through the alley, one had a melt down during a nor'easter last year, abandoning my property during a storm while I was away and the last plow driver wanted a $1,200 retainer just to get under a 1 year contract - this did not include cost of salt.  

@Marian Smith thanks for the advise. Do you foresee utilizing a tenant for snow removal and lawn care to be an issue?

@Karina Garcia, @James Ma, @Katie Fiola Jones, @Thomas S., @Dennis M., thanks for the feedback, much appreciated. I guess I misspoke when I used the term property manager. What I am really looking for is someone to snow blow the 6 car lot/driveway and mow the lawn. We get a lot of snow in the north east and with my 8-5 job and soon to be new duplex, I don't want to have to worry about going back and forth to remove snow - especially if I am out of town for work, etc. 

Would you view mowing and snow removal acceptable tasks for a tenant? 

Hey BP,

I am very close to closing on a duplex which is about 3 blocks from my 3 family home (my current residence). I will be moving into the duplex once I close and I will rent out the unit I currently live in - leaving 0 vacancies at the 3 family home. 

Because of the additional management responsibility that comes with the duplex (one unit already occupied) and the repairs that need to be made, I have decided to utilize a property manger for the 3 family. The property manager I have in mind is a current resident at the 3 family who I have gotten to know well over the last year. He is very responsible, helpful and already takes good care of the house. 

As a manager I would like him to take any calls that may come from other tenants, address/repair items that are within his capabilities (notify me if a call requires a contractor or if a repair is outside his capabilities), remove snow (winter) and mow the lawn (summer) - fuel, salt, mower, snow blower, etc provided by me.

What recommendations do you have for formalizing an agreement like this? How often would you recommend I communicate with him?  What percentage of his rent ($1,375/month) is good to offer to take on this position - keep in mind he is not a licensed professional? 

Thank you for your time.

@Connor Farrelly

Hi Connor, I own and manage a few units in town. Feel free to message me if you have any questions. Each market has its own unique advantages.