All Forum Posts by: Jennifer T.

I personally find this almost unethical. As a tenant, they have already given a security deposit, so why should they have to pay a week early every month. If I were a prospective tenant, I would be hightailing it back to my car if I was told that, just on principle alone.

It would be like a bank saying, "Your mortgage is now due one week early so we can get an extra jump on starting the foreclosure process if you don't pay us."

With that said, what I did do in the past with one set of tenants was give them a $25/month discount if they paid the rent early. They lived there for 13 months and were ALWAYS early. That would be another way to do a little bit the same thing, but make it a positive instead of a negative.

@David...That sounds right to me. I also worked with a loan officer inside one of my bank's branches.

From the little bit of shopping around I did, I was surprised at how different the banks were in what fees/costs they charged. Some charged a few hundred dollars just in bank fees to set up the HELOC. Some also/instead charged a yearly fee, though this was usually less than $100/year.

For me, my bank was pretty awesome. They paid for the appraisal themselves and did not charge me any fees...other than the filing fees charged by the city and parish (county). Which were shockingly high! I think those were like $250-$300...for the city to file a 12-page document (rolling eyes)? But then, I had expected to pay for an appraisal and didn't have to, so I still felt ahead of the game.

GL with your HELOC!

@Robert...thanks! You were posting while I was replying.

Perhaps I am mistaken about other states having the same requirement. I was under the impression it was only ours...but many states have community property rules.

At any rate, your words are very wise. I did a lot of research before I got married to ensure the house does not become marital property under community property laws.

Now my next rental property...he and I will be buying together and hopefully be our first step in our combined financial future.

Thanks Roy for your correction. I did mean appraisal.

That is interesting about Canada. However, at least from my understanding, it is unusual in the United States and Louisiana is one of the only places that requires spousal consent to apply for a loan that they are not a party to or responsible for. I can see both sides of it.

While not a big deal, in the grand scheme of things. For my particular situation, I did find the requirement a little insulting. I bought the house, I pay for the house, I maintain upkeep on the house, I'm the one who applied for the HELOC. From a financial standpoint, my husband has nothing to do with the house. It is not marital property (per legal agreements), so I should not have to get his "permission" to do anything with my house and my credit. And that's the other side of the coin :).

I would actually view it as a positive. Someone who rents and owns property is generally going to be more responsible and financially stable than someone who doesn't. Plus, they are also more likely to take care of a property.

In fact, when I bought my first home and gave my landlady notice, she (half jokingly) told me I should rent the entire hosue out instead of just half of it and stay renting from her, lol. Of course, a different situation since I had already been a great tenant for many years, but I still chuckle at the memory.

She was actually my inspiration to get into REI, because she has made a good lifestyle out of "Buy and Hold".

I don't think you will have any trouble getting a HELOC. I'm assuming your g/f would need to sign for it also, since you both own the home.

I recently got a HELOC for my home...purchased it before my marriage and it is only in my name...with a credit score probably a bit lower than your g/f's and it was approved.

They assess the property value by requiring an assessment...just like if you were purchasing or refi'ing the property. Some banks make you pay for that, some don't.

Although this won't apply to most people, I did have to add one oddity for my HELOC. I live in Louisiana, which is the only state that has Napoleonic Code Laws. As such, any time a married person is applying for any type of credit...their spouse has to sign a document that basically says "I am aware (spouse) is applying for credit." So my husband...who is not on the deed to my house, is not on my HELOC, and has no financial responsibilities whatsoever for either the house or the HELOC...had to come to my signing of the HELOC docs and sign some of the papers also. So Crazy!

2)  Oh!  Well, thank you for that information, Chelsy!  And here I am bad-mouthing Orleans Parish, lol.  I'll have to look back into that.  I'm assuming whatever I read previously about the three years was probably just talking about Louisiana, in general. 

This forum should be a great place for you to do some "studying".  Then you can come back to States with all cylinders firing :).  I'm glad you have had luck renting your BR house while away.

Hey Chelsy--

Thanks for posting this!  Nice to see another Louisianian here.  I live in NOLA.

I haven't done much research on any of these so, keep that in mind.  But here is my gut reaction:

1) Sounds like yet another opportunity for unnecessary administrative expenses and possible corruption.

2) ABSOLUTELY!!!  Though, of course as always, Orleans Parish is the "exception" for anything that is actually beneficial for its citizens.  Although I've never tried them, mainly because of the 3-year waiting period (excessively long IMO) that is currently on the books, I have looked into how the tax sales work in our state.

The general gist is the tax sales are once a year.  For any property you "win", you pay the outstanding taxes.  The original owners than have three years to reclaim their property by paying you back the taxes at a nice percentage...I think 12% last time I checked.  This is usually what happens.

If they don't, the property becomes yours at the end of the three years.  But it is not like you can live at the property or rent it out for those three years.

If you spend money/make improvements to the property during the first three years, the original owners also have to pay you for that before they can reclaim their property...and I think the same interest rate is tacked on also.  However, unless the property is abandoned, the owners are probably still living there for the three years and so it would be difficult/awkward to make improvements.  Plus, although that is what the statutes say (paying back for improvements), that is just too risky for me.  Just because the law says "this", doesn't always make it so...especially in Louisiana.  KWIM?

3) Although I think this is a good idea, in general.  There is already a lot of talk that, if this amendment passes, there is going to be huge corruption with it.  I'd be surprised if there wasn't.  I personally wouldn't touch anything in the 9th Ward with a 10-foot pole...I don't care how cheap it is.   Only Section 8ers will rent here and resale will always be a very limited audience.  I'm not saying this is a bad investment strategy; however, it is not mine.  But, regardless, I don't have a dog in this fight because I won't buy in an area that literally has dog fights on a Sat. night, lol.  But to end on a more positive note, if this amendment passes, I sincerely hope it gives the people who live there a "hand up" in home ownership and turns this area back into the "hard working, blue collar" neighborhood that it used to be...both of those are what the real goals are supposed to be for this amendment.

So true!  I have one rental and have only been a landlord for three years, but have already had two sets of tenants leave because they bought a house.  In fact, my first tenants literally bought a house around the corner, lol.  They rented from me for 13 months.

The next set of tenants were up front they were looking to buy a house and so, because of that, they wanted a shorter six month lease instead of one year.  I was okay with that and they actually ended staying 13 months before they found the right house to buy.

My current tenant is in an advanced educational program that will last at least 4 years.  Of course, things can always change, but I know he emphasized before we signed a one-year lease that he is looking for a long-term, stable place to stay for the entirety of his program.  Crossing my fingers I can finally get out of the "13 month" rut!

I'm pretty green in that I only have one rental and have only been a landlord for three years, but I have always gotten my tenants from CL.  In fact, I didn't even know about the other sites until I read this post (example of my greenness, lol).  I also throw up a "For Rent" sign in the front of the house...but that is more so my potential renters from CL can find the house easily.  I do get calls directly from the sign also but, it seems like it is only low-income renters who call from that (mid-income area, nice house).

I post a lot of pics and write an enticing ad with descriptive language.  I always get tons of responses.

The very first time I put out an ad...this is my first home and first rental property...I think I had it priced slightly too high ($900).  I did a lot of showings, but no bites.  I lowered it by $50/month and my phone was ringing off the hook.  Found great tenants just a few days after that.