All Forum Posts by: Steven Anderson

@Alex Hamilton you make absolutely fair points. To be clear I have yet to do what I was suggesting above but my current tenant just gave notice and I think the interest in the property will be high BUT perhaps less interested in multiyear leases as has been the case in the past.  The only three tenants I've had were just as you and @Sarnen Steinbarth suggested. They were the first to apply, qualify and pay the deposit. However, I offered a rent concession to sign a multiyear lease. NOW, I think the appetite for a multiyear lease may less so I was thinking of approaching things differently. The points you make clearly suggest the suggested approach inappropriate. Seems I can either make the multiyear lease an initial requirement for qualification or I can continue to offer a rent confession for signing a longer term lease. 

i appreciate the candid feedback. 

I just prefer multi-year tenants for the obvious reasons.  I've always had tenants in this property that have been willing to sign multi-year leases for small rent concessions, but I'm turning the property over currently and have a feeling there will be high interest from qualified applicants and not all will want a lease for more than one year.

Quick question. If you screen multiple applicants and they all qualify do you tell the applicants you will give a lease to whomever is willing to sign a multi year lease?

If you are interested in doing a commercial loan in your LLC with a true 20 yr term and not the 5 yr balloon send me a DM and I will share my banking contact with you. It's the only bank I've found that doesn't loan with the 5 yr balloon.

Sean Blomquist how are you avoiding the seasoning period to cash out?

Quick question. If you screen multiple applicants and they all qualify do you tell the applicants you will give a lease to whomever is willing to sign a multi year lease?

@Denise Mayo-Walley

First of all, if it were my money I would do this deal. 

Couple things to consider. The prepaids and insurance in your closing costs might be double counting property taxes and insurance you already estimated for the first year (if you are escrowing).

I think your insurance guess is high. Depends on age of home and county. Galveston is the worst from a rating standpoint and Harris is bad too. Is till think it's high for a $99k home with a $80k mortgage especially if you are insuring the $80k vs the $99k. 

Lastly, if you add back the $1400 for property mgmt you are at $3000 in cash flow which is $250/month. If your insurance is high you may be closer to $300/month. 

Anyway, again if my money I'd be closing the deal. 

Good luck to you. 

I will be there. It will be my first time attending. Looking forward to meeting everyone. 

Steven Anderson

If you

@Account Closed yes but you can deduct many items for taxes.  if you want to value the tax shield that deductions provide you would only include the deductions times your marginal tax rate in the equation.