All Forum Posts by: Michael Robbins

If you have not already, send one more letter, stating that if the payment plan is not adhered to by such and such date then it will go to collections (provide a date).  Its probably worth another try via the payment plan.  The collection agency will take a big chunk. 

In addition to credit screening and background check I highly advise "rental verification form."  The rental verification form is to be emailed or faxed over, along with the applicants authorization, to the past/current landlord.  Also, the rental verification form should only ask fact based questions like (1) Any late payments (2) if so how many late payments (3) condition of the home upon move out, etc...This is something that should be done in writing and not over the phone. 

If the item was previously notated on the inventory condition form upon move in then I would normally decline the repair request.  But, it being a crack in the window of the front door, I would 100% take care of it right away.  Its a liability even if it does not appear to be.  For example, someone might kick the door in and the tenant claims that it "was that much easier to break in" because of the cracked window in the door.  

I would send a certified letter and post the letter on the door.  Make sure to include the new rental rate and date the lease must be signed by.  If the date comes and goes then send another certified letter (30 day notice) and post on the door.  Each State is a little different so of course consult an attorney.  

I would payoff all the credit card debt before making any investments in real estate or anything else.  

What looks better?  What do you think would be more impressive to the tenant: the LVP or wood floors?  If you believe that you can get a better rental rate out of the hardwood floors then I would stick with that.  When it comes time to rent the property make sure all your angle stops, laundry valve shut offs, etc.. are in excellent condition.  And when it comes time to screen your tenants be firm in your qualifications.  

I would make all decisions based on what you have agreed to in writing (a contract, not text messages).  If the tenant wants $3,000 for moving out early has he/she signed an agreement?  If not, then I would not pay any amount and assume that the original contract date is the date he/she will move out.  Even though the property management company made an error, all parties signed with a move out date of 5/2020.  

I think the biggest downsize is not having a firm rental estimate.  You might consider buying a re-sale and placing some upgrades to increase the rental rate. For example, in 2019 I purchased a two townhome that typically rents for $1450m and after all the upgrades it now rents for $1785m.  I guess depends on your location but at least in Vegas/Henderson that has been the case in my experience. 

I would continue to save money.  This way when you are able to get financing you will have reserves built up and plenty of money for a down payment.  I would also tackle the various reasons the bank will not lend. 

I personally only invest if the the rental generates cash and has solid long term economic prospects.  I do not bet on appreciation or invest on the hope that cash flow will one day be positive or the hope that an area will develop around the subject property.  I advise the same to any client I come across looking to buy a rental.