All Forum Posts by: Satyam Mistry

What is the best way for collecting rent with roommates when using Cozy? We do have each tenant submit a separate application including background and credit check. 

When using Cozy for 3/4 roommates in a single family home do you have 1 person responsible for submitting full amount of rent or setup each of the tenants accounts and collect separate payments?

If doing separate accounts if 1 of the tenants does not pay does the eviction just apply to that tenant or if any of the tenants do not pay does that breach the lease agreement for all occupants?

I like the idea of having all applicants included on the lease, but having 1 person on the Cozy account that is submitting payment in full for all as it would be cleaner and easier to manage. Curious as to how others are going about this type of setup.

@Sam Hurdley Hello Sam, check what market rents are for properties in your area and what kind of properties they are such as single family home, flat, etc. New Zealand has a lot of renters so look into what is the most popular type of property to rent and what that sweet spot is in market rent that allows for a large pool of qualified tenants. The 1% rule is not the only formula to consider in the USA or other countries. For example I know in the UK that popular rental properties are more along the 0.5% rule, but property taxes are taken care of by the tenant as well as maintenance costs are much lower due to things like non shingle roofs, no grass, all brick solid structures, etc. so a portion of that 0.5% is made up in other areas. Also consider the appreciation factor of the area and how prices have trended historically.

What do you average for on turnover time for single family rentals? 

My single family properties rent around $1000-1900. I do not like showing prospective tenants a property until it has been vacated, touched up, and clean. I understand some people do show properties when it is occupied and that may result in filling faster vacancies, but in my experience I have found tenants respond better to vacant properties.

If you have a property that has been sitting on market for a few weeks what tactics do you use if any? 

Of course reviewing and lowering the rent may help. I list my properties for rent on the major sites such as Zillow, Trulia, HotPads, Cozy, & Craigslist. I do screen tenants prior to showings so am not wasting time with those who may not be qualified. Also currently have a no pet policy, but try to keep an open mind depending on situation. Once it starts sitting for a couple weeks it starts sinking further down on the new listings searches and could be overlooked so wanted to get some suggestions.

@Nathan Gesner Hello Nathan, I think just staying involved with your investments is an important aspect. Regularly doing your accounting, reviewing market rents & recently sold properties in your area, checking with your bank if there is anything they can do to lower the interest rate on a commercial loan or defer payments for a couple months if needed, reviewing your properties maintenance needs, etc.

Being proactive & aware with your investments will in turn help protect them. Yes, you will need to spend some money doing this, but then it will force you to even better understand some concepts such as the important of sufficient reserves. Implementing the same attention to detail when there is a crisis in the economy to when the economy is stable and thriving will results in long term wealth growth. There is no limit to educating yourself on the investments that you have made.

@Daniel Brault Hello Daniel, I have bought property and made offers in the past without seeing the site, but I had a trusted agent who had viewed the property for me. I think the most important thing is knowing the market. Buyers who know the market will feel comfortable continuing to make offers based off of comps, neighborhood, and the potential of the deal. 

If it was a deal that was larger than I am used to purchasing or included more units than I normally buy I would want to personally see it, but if they are the same type of properties that I have regularly been looking at and purchasing I would say viewing may not be the most important aspect. Doing a video walkthrough of the home and sharing that with potential buyers is a huge benefit in my opinion as you can really get a sense of the flow and space. I would also suggest providing detailed comps of other properties in the neighborhood so buyers can get an idea of the value of that particular area. Attach county assessor property tax details, get an insurance quote, etc. 

There is no harm in providing as much information as you can to support your position on the value of the deal. Even if a buyer does not take this particular deal you presentation, organization, and attention to detail is something that will be noticed and help with more prospects in the future.

@James Runkle Yeah if you have not gotten a home inspection it may be worth adding that in. First step I would recommend is talking to the agent or the seller and feel them out. Did you work with an agent on this? Was it an MLS listing? If it is a turnkey rental and each duplex is around $120k appraisal even if you rent each side out at $800 each that seems to be a great deal and if it is turnkey it should be nicer as well. Send me the addresses I might buy them if they are in a B class neighborhood at that price haha.

@James Runkle Hello James, what class property is it and did you capture below market value? I do not think that rents would drastically go down. It is worth reaching out to your agent or the seller if there is no agent and seeing if they have any incentive for moving forward with close. This was an unexpected disaster that hit the world so there is no harm in asking if the seller is willing to do anything to help incentivize the closing.

Curious to know if landlords are using Cozy for 3-4 tenants in an individual property or just setting it up through 1 of the tenants for the full amount? I have used Cozy many times, but not for multiple tenants in the same property such as roommates. Will collect applications for each of the potential tenants and include all on the lease. In your experience is it best to set up Cozy through 1 of the tenants or have separate ones for each one occupying? If collecting through just 1 tenant should there be a written contract about this to be included in the lease? Any other methods or suggestions also appreciated.

Hello Clay, if you want to get a loan on the secondary market there is a 6 month seasoning period unless you do a delayed financing exception which I will not get into here. If you do a commercial loan there is no seasoning period just talk to different local banks and see what their options are based on your plan. On the secondary market the loan would be decided on the new appraised value of the property which should be higher than what you are invested into it for. For example when doing a BRRRR deal you can apply the 70% ARV rule which means that your purchase price should be 70% of the After Repair Value minus rehab costs. Important to know your market and research what is fair market value for the property after the repair. A secondary market loan is favorable for some as it is usually a lower interest rate and the amortization can be up to 30 years whereas commercial loans are usually 20 years. Most BRRRR deals are purchased and rehabbed with cash through own money, private money lender, hard money lender, line of credit, etc. Then after the property has been rehabbed, rented out, & stabilized the refinance should allow you to pull most if not all of your invested money out (as long as your calculations have been correct) as a bank will give you around 75-80% LTV (loan to value) depending on which form of financing you go with. You can choose to not pull out all of your cash if you do not wish as the more you leave in the lower your loan amount will be and the more equity you will have in the property.

@Michael Norris Hello Michael, you talk to a few realtors in your area and explain what you are looking to get into and get their opinion. This is when it helps to talk to experts in the industry in your area. If you are looking to build then talk to home building companies that you are interested in and ask them about what the land pricing for just their plots are as well as get their opinion on the type of plot that you have found.