All Forum Posts by: Teresa F.

Welcome Simon, I own enough properties that investing is my "job." Since I buy and hold, my properties must cash flow. Do not buy a property where rent will not cover expenses (including mortgage). In my market, DC metro, this is not difficult to do. I doubt that it would be an issue in Atlanta either. Good luck and have fun! Teresa

Hi Bill -- Just an FYI for future purchases, most Realtors and many property management companies will show your home and help you find a tenant for a flat fee. In my area (Washington DC) it is typically one month's rent.

Hi Monique, I am a full time investor in Clinton, MD. I believe we have the best market in the nation. Just paid around 40k for a sfh that is rented for $1600. Glad you are ready to jump in. Feel free to send me an email here or at [email protected]. I'm always happy to talk real estate. As you already know there are lots of great and helpful folks on this site. Teresa

Hi John -- Glad that you are aware of your Fair Housing obligations and asking questions. Although I am now a full time investor I spent 20 years as a civil rights lawyer. The answers suggesting you make a system, process applications in the order received are all valuable. I have never rejected an application. When I have someone who has been evicted or otherwise doesn't check out, I call them and tell them the problem. The typical answer is that a mistake has been made. I encourage them to fix the mistake and explain that I have to proceed to the next application but if they bring me proof that a mistake has been made and the property is still available, I will continue to process.

George -- Our civil rights laws are trying to create an equal playing field. The laws do not create special rights or privileges, the laws try to ensure that a protected class gets the same rights or privileges as others. Hopefully, you realize that every person falls within a protected class. A white person trying to rent who is treated differently because of his or her race has a claim.

Teresa

Just left Madrid and spent the day walking around Brussels. I've closed on two properties this year. Both around 40k, one is rented for $1600, the other is For Rent for $1550 a 3/1 1/2 if you're looking (DC Metro area). Passed the Maryland Bar and am studying for the Broker's exam. Fired my property manager in Alabama and found a great one. Waiting to hear on two other offers.

Been busy, got to pay for my winter trips to Morocco and Hawaii.

I changed from an LLC to a land trust owned by a different LLC. This was a short sale by BofA. Had to provide trust docs but BofA seems to be lightening up on its previous craziness.

Hi Eddie -- I took the real estate salespersons course but never got my license. The course helped me learn more about real estate law and how non-investor Realtors view real estate. To be a salesperson would not help with my investing. That said, I am a buy and hold investor so I am not looking for 40 deals a week to feed a wholesaling machine.

I have decided to get my broker's license as that offers other business opportunities. In my state, my law license lets me skip being a salesperson and directly test for broker. Aaron Mazzrillo, thanks for posting, I'll be using a few of your ideas!

Yes. Just ask my tenants and my CPA. It helps that I love what I do, get to work with great people, and have tenants that are responsible and nice.

I like mysmartmove but I also do my own homework. Have you talked with their current and previous landlord? You may need an authorization for the landlords to release info, but get the authorization and then ask: How long did they rent from you? Address of the rental? What was the rent? How many times late? Rental left in good condition? Would you rent to them again? Anything else I should know?

I also speak with their employer to verify time on job, if they are liked, responsible, doing the job they claim they are doing.

Unlike Brian, I love a two year or longer lease. I want tenants in as long as possible. However, I have an automatic 3% increase every year. If I have problems with the tenant, I can use that lease as leverage to say "this isn't working for either of us. If you can find a place by the end of the month, I won't hold you to the lease and will give you your security deposit back in full on the day of inspection if the property is broom clean."

Finally, when there are credit issues, I've done two things. Both worked well. The first was to get a co-signer. The one I like even better is to say if rent is paid before the first it is $1135. However on the first it will be $1185. So the tenant get's a $50 discount if he or she pays early. Is still okay if pays on the first but will pay the "regular rental rate" of $1185 and if payment is not received by [choose your date] will pay a penalty. I used this with what turned out to be a great tenant -- long tenure on job but lousy credit due to medical bills.

Good luck and congratulations. Teresa

I agree with Silvio that YOU are the best person to screen your tenants. I use MySmartMove to run credit checks but I also call current and previous landlords and employers. I also ask for a pay stub. If something doesn't check out, I don't reject the tenant, I tell them what didn't check out, e.g., "eviction" and explain that if it is a mistake they need to get it corrected and get back to me but in the meantime, I'll need to start processing the next application.