All Forum Posts by: Ron H.

Lots and lots of pictures and video.  Do this on move in and move out.  I also require a move in inventory sheet although this doesn't always work.  I have one tenant that marked everything bad, dirty, etc. even though house was just completely renovated.  For this I will have to ignore the move-in sheet and go strictly by the pictures I made on their move-in

Returning deposit needs to follow your state guidelines.  Some states are very strict on this.  Mine requires 2 weeks to return if no damages or 30 days if any part of the deposit is to be kept along with a list of charges.  In most cases it is best to hire people to do the repairs to show proof if necessary of how much it cost to bring house back whole, not including any expected wear and tear.  

My answer would be "Thank you".  I did have a young tenant once that paid cash by mail.  He was warned heavily that if mail was lost that it meant he still owned 100% of the rent immediately.  After that he paid in person or by check.  This was for rent by the room.  I have no problems with accepting cash myself, but I am no longer on each property every month so the option to pay cash regularly goes away

I now only rent houses, not rooms.  All are now paying online which I think the tenants prefer anyway.

For my B rentals in FL I obtain 1st and 1 months security deposit for  most tenants.  I screen very heavily but if the tenant is even close to shakey credit wise I also require last months rent.  I have never had anyone (so far) not pay their last months rent but I do let they know if they are ever late I will start the eviction process (following the state requirements).  Quality tenants do not want big hits to their rental/credit history if they can help it.

I would also add that you need to receive any move in conditions forms and pictures from the current owner for the tenant's movein.  Hopefully they have this documentation of the condition of the house.

Does the tenant already have a security deposit with the current owner?  If so you will owe this back to them when they move out.  You need this deposit money transferred to you along with an estoppel from the tenant on the amount of the deposit they paid.

If the tenants living there do not have a security deposit I would definitely require this to be paid along with a new written lease - following the notifications/lease change terms in the existing lease with the tenants

A HELOC is flexible. You can use it to pay cash for a property, renovate it, then get a mortgage on it paying off the HELOC and repeat continuously. You also can pull out of your HELOC just the amount you need and when you need it - not stuck with a set amount upfront. My HELOCs and many others have a 10 year draw period with a 30 year payback. Interest is variable though based on prime rate minus x. I have no yearly fees to keep it open and closing costs up front was only the transfer taxes.

If you are planning on using a cash out refi for the duration of the investment property ownership, you can probably get a fixed rate that would be cheaper (or less interest rate increase risk anyway).

After 6 months just get a standard cash out refi loan.   All banks are different but most use 6 month holding period for a standard refinance.  A few want a longer holding period than 6 months.  At this point the loan amount is based on a new appraisal at usually 70% to 80%.max.

There are fannie mae rules for delayed financing, for resold loans.  The most you can borrow is the original purchase price plus closing costs.  Purchase at 100K, 5K closing.  Put another 100K into it.  Still the largest loan you can get is 105K.  I've used delayed financing twice now with two different lenders, but these properties required less than 10% refurb cost to get a much larger appraisal number, so I was able to get everything back except my 10%.

Strong preference for sewer although I will consider septic if system is newer and price is right.  When renting my tenants pay water/sewer fees.  All septic worries I have to pay for, both in every 3 years pump out and eventually when the system gets replaced, which is about $13K in my area.  Also, you never know if a tenant is treating the septic system properly, unless you do a pumpout and find foreign objects inside.  I do pump outs every 3 years in rentals since an overflow can ruin the entire leach field.

No cats ever! Cat odor very difficult to deal with. I allow 20 lb max dogs ( or close to this) no puppies, no aggressive breeds. Must have renters insurance with pet coverage. Must show rabies certificate. Must provide pictures. Must meet dog. $35 per month fee each. 2 dogs max but one is strongly preferred. So far no issues with my dog owners. I still prefer no pets but allowing some pets gives me a wider tenant pool. Note: I remove all carpeting from units as part of my BRRR process.