All Forum Posts by: Peter M.

@Sharon Miller Sounds sketchy. So 72k/yr is 6000/mo before taxes so let's say 5100 after taxes, 401k, benefits. Well 1500/mo + 3600/mo in debt payments is 5100...

But if the company will pay his rent it may work but it seems like too much of a headache to deal with HR. Sounds like a scam. How do you get 260k in debt? Is he a doctor? And what kind of interest rate is he paying on that. Were all obviously in the wrong business

@Daniel Showman No, I'll treat it the same way as any other eviction. I will take it into consideration just like any other applicant that has been evicted. If they can show positive growth and have evidence of better financials I would still consider them but probably require a bigger deposit.

@Tyler Dix This is a little difficult to follow but I dont think it matters. It seems like they screwed up the original lease and want to fix it with the amendment but it already says in the first paragraph, if you dont fulfill the lease terms you will have to pay back that discount. As far as the date mismatch it's either a honest mistake or the date some internal policy changed. You could ask neighbors if they are being asked to sign. But overall, they dont have to let you out of the lease early and by not signing the amendment will just set that fact in stone. That's why I said it doesnt matter. It better be one hell of a deal on a house to spend almost 7k to get out of a lease. Better to just finish it out and have plenty of time to move.

@Ryan BirdNo you probably cant close the loan in 30 days but it takes a bank much longer than 30 days to foreclose so youd have time. I really wouldnt worry about it as long as you keep making the payments

@Ryan Bird Its a moot point now but just let it ride. Even if you get a commercial loan they will make you sign a personal guarantee unless you LLC is well established with good assets. (Doesnt sound like the case). If you switch to a new loan you'll just be paying closing costs for the same level of risk. Also, in the future dont use quit claim deeds, they can over complicate title when it's time to sell.

@Erjia Mao

1. You will never eliminate risk so the "safety" of investing right now comes down to your comfort in the level of risk you take with future investments.

2. I see merits in both but lean toward LOC. You'll pay similar closing costs for each but you dont have to use the LOC. But if you do use it you can refinance, pay it back, and do it all over again. Honestly its 6 of one, half a dozen of the other. Closing costs will always eat into your profits the same way whether it's a sale, purchase, or refinance.

3. Sounds about right. Lenders usually wont go any higher than 50% of equity and you shouldnt be comfortable going higher than that unless you're a super duper risk taker.

4. Doesnt matter. If you find a lender in FL with the best deal use them. But there are federal and local regulations as well as the banks internal policies that all have to match up.

All in all I vote LOC. You only pay interest if you use it whereas a refi you are paying interest again(you just paid it off!) plus the lost return you miss out on if you dont reinvest it.

@Jack B. Go to petscreening.com and set up an account. It's free. Then make all of your applicants fill out their screening. It will scare away the fakers. Also check the past 2 landlords. The current landlord may say good things to get them approved somewhere else.

@Jared Webb You could write a lease any way you want and be "technically" right but if this went to court do you really think you could defend yourself if the unit is listed on AirBnB? All the HOA would have to do is take a screenshot of your calendar to prove you were renting it more frequently than monthly. Plus AirBnB guests dont sign leases.

@Michael Needle 1.2 is my minimum. You could always do some Fannie/Freddie loans that dont care about DSCR. Bringing in partners on your next deal with a DSCR that low could make financing harder too. But if you have a good relationship with the lender and the deal is really solid they might take the risk. Or go find private money that doesnt look at that metric.

@Stanley Drew Just like the tenant cant break their lease, you cannot either unless there are provisions for it already in the lease. Other options are to buy them out (cash for keys) or offer some other incentives. Or you could list it with them in place and do a lease back with the buyer. Talk to them and let them know, maybe they want to move out and if you agree to give them their full deposit back they may just move out.