All Forum Posts by: Michael Thach

You can use whitepage. On there I found out that one of my tenant had some civil court judgement with the case numbers. So you can read them up and see if you like to take the risk. The backround check the most PMs do through appfolio won't give them this informations. One backround check just cost like $10. In my case it would have saved me several thousands. So in future I will always run it. The more info you can get about a tenant the lower the risk you have afterwards. 

- Making sure that the lease contract of your PM does not allow electronic payment like ( creditcard ) or personal checks. Especially not for the security deposit and first month rent. There is a chance of chargeback !

- Don't allow PM to put a tenant in on your behalf, take the time and double screen the tenant. Some PM does not use a complete Backround check. Civil court cases will not show on their report. So invest another 10 USD and screen the tenants personally.

Area like of the west do cashflow better. Like

32805

32808

In general if you are looking for cashflow you should do ok, if your property is making close to 1% in monthly rent in comparassion to the sales price. Now a days is not easy to find 1% anymore. It need some work and you need to negotiate with the seller.  Little lowballing, little luck and patience. Usually after the inspection report I send the report to the seller and try to negotiate another big part. This will help you to get close to 1%. 

Looks like classic BRRRR should work out. If you want to be on the safe side add 1 more month to rehab. Rehab usually always takes longer than we want. Also put another 20% on your rehab cost. But other than this it look fine to me.

Thank you for everyones Input. It games me a wider view to navigate through this matter. 

Hi Bob, what do you mean by 1st and last SD ?  Thank you so much for your input. We will serve them now.

I was not aware that my PM would take creditcard or unsecured funds. Is so odd because they are not a small PM company. I did my researched and their PM company had good ratings and seems very knowledgeable. 

We did all the repairs she requested in a timely manner. So I am not aware of any problems. Maybe there is a problem and I should contact the tenant. What are your guys thought ? Will it complicate things if I put myself into the case ? Or should I just let my PM handle it ? 

But as I found out on a backround check the tenant was sentenced as guilty that she owes a apartment around 1400 USD. So it seems like it's not her first time doing something like this. 

So I have also digged more into this case and found out with a backround check that my tenant has owed another apartment complex rent and got sentenced by a judge as guilty. 

Was I to naive to just believe my PM when he said the backround check came out clean ? So do I have to bear all cost even my PM obviously did not do a good job by screening this tenant ?

Thanks Joyce, this would be worth a try. I did not approach my tenants yet. All I received was a phone call from my PM and saying that the tenants have chargeback the security deposit, and 2,5 months worth of rent and that I have to pay for it. 

I have a question for the community now. This is part of the contract for the form of payments. 

" (1) Tenant must pay all rent timely and without demand, deduction, or offset, except as permitted by law or this
lease.
(2) Time is of the essence for the payment of rent (strict compliance with rental due dates is required).
(3) Unless the parties agree otherwise, Tenant may not pay rent in cash and will pay all rent by (select one or
more): cashier's check electronic payment money order personal check or other means
acceptable to Landlord. Landlord may or may not charge a reasonable fee to process or accept payment
by (select one or more only if Landlord indicates a reasonable fee may be charged): 

x cashier's check
x electronic payment 

x money order

   personal check 

x other means acceptable to Landlord. " 

So there is a X for electronic payment and other means acceptable to landlord so does it automatic means I would accept credit card payments for rent ? 

Anyway I learnt that I should never ever allow creditcard payment for rent. However I felt that the PM should have known this and warn or protect me from this kind of procedure. 

those are some really nice numbers. Good job !