All Forum Posts by: Thomas S.

The deposit is part of testing the worthiness of a applicant. Can they afford the unit. Managing a deposit is simply part of doing business. Those that do not charge deposits either have no idea of how to operate the business or are simply lazy. Most novice landlords suffer from both ailments.

Definatly sell it to move. Having a single property long distance, especially one not producing financially, is a mistake. Poor business decision to hold on to a poor investment simply because you already own it. Personal homes very rarely make for acceptable investment income properties.

You charge them for a cleaning service to come in, molly maids, assuming it is in the lease. Dirty is not a major deal and could be performed by you without charging tenants. Damage is minimal to appliances and to be expected. As long as it does not effect performance it is not a issue. As for the grass compensation depends on what you gave permission for in advance of them putting up the fence. When you allow pets, which is usually a mistake, you must expect damage. This would be covered by charging a higher monthly rent. It all comes down to your lease language and any permission you gave the tenants in advance. Also very important for you to do quarterly inspections to prevent problems popping up at move out. Keep in mind you can not charge tenants for your time, you must hire contractors to be able to deduct expenses from a tenants deposit at move out.

Expenses on a SFH will be in the range of 50% of the rental income plus debt repayment. Estimating expenses below 50% will be a mistake. If they are above 50% they are overly cautious and may be due to them getting into investing without adequate reserve finds. They need reserves to carry the property for a minimum 6 months without tenants. Rough estimates when looking at a investment is to have rental income at a minimum 1% of the purchase price. A 200K property needs a minimum rent of 2K monthly to support the purchase.

Looks like a good deal. With long term tenants below market it should be OK to raise rents to full market, with proper notice, as soon as you take ownership. Long term tenants are aware they are below market and generally do not move due to a jump to market rents. You want to make the move to market immediately before you get comfortable with the tenants. It is a far superior method as opposed to the soft approach of spreading it gradually over a long period of time. That generally only prolongs the resentment and costs more money. Additionally if they can not afford market you want to know asap to allow you to get new tenants quickly to stabilise your business. This property has more than enough buffer to allow a quick transition to full market immediately maximising your returns. It's a good deal based on immediate rent increases.

Instruct your tenant to call the police every time. They won't do it and will move out at end of lease so be prepared. Let them know you will be non renewing the other tenants lease. Concentrate on getting rid of the offending tenants. You could give warnings, probably won't help, but the best option is to non renew their lease.

Do you want to be a investor or a speculator. Equity comes and goes, you want cash flow to survive.

Concentrate on your education. Having a good W2 is invaluable as a investor. For now sell the condo and take all the money to a financial advisor to invest. The income will cover your expenses. Rent a affordable apartment. Once you get established in your career you can then start slow to invest. Best option would be to look for a career outside of CA. That should be where you choose to grow your real estate investments. You are young, do not feel pressured into starting to invest until after you graduate. You don't need the distraction. Education first.

Don't waste your time trying without money. Having no money is a indication you are not able to properly manage your finances. If you want to be successful investing get control of your own financial well being. Put your efforts into living a frugal lifestyle, get educated on finances and invest when you have the cash.

Best thing you can do is fill it in. It will be less expensive in the long term and eliminate all liability. No way you should risk having a pool with a rental.