All Forum Posts by: Tamara R.

I have five rental properties with this piping. Interestingly my insurance company and mortgage companies never asked about it. All my properties were built in the mid to late 80's when this stuff was common. My inspector told me that if it has held up this long without problems it may be OK. I did finally have a plumbing leak in one place we have had for 19 years, but other than that no other issues. Would have liked to have replaced it but couldn't find a place in my budget for the $6000-$8000 per house I was quoted to fix it. I am building up my reserves and will likely replace the next time I have to paint and at turnover.

Most lenders require a minimum 20% down for investment properties. 25% or more will get you the best rates.

I am always astounded when I hear that properties can be bought for $30K or less. My parents paid $30k for their house in the area I live (DC suburbs) in 1968, and that was the absolute last time you could buy a house for that price:)

That said, doesn't maintenance (i.e. a new roof or plumbing) cost the same in a $30K house as it does in $150K house (assuming houses are same size)? Wouldn't it be better to have less houses so you would only have to deal with maintenance on 5 instead of 30? Also, I can't imagine you would count on much tax savings in the way of depreciation for each of those houses. My houses cost about $200K, and I can depreciate $6000-$8000 on each every year.

1. Never give them the keys until they give you the first months rent and security deposit in CASH or cashiers check.

2. Check your state laws.

3. Check your state laws. I always fill out a detailed report ahead of time (i take a couple of hundred high resolution photos date stamped as well to document condition), then go over it with the tenants when they arrive. My state law allows them a few days to add to it if they find anything else. Make sure you take some of the photos with the tenants in the photos to prove they were actually taken at the time you handed the keys over to the tenant). I like the idea of a video as well, but have heard that some judges don't want to deal with video equipment in the event you have to go to court to dispute the disposition of security deposit. Easier to print the photos and have photographic evidence.

5. You can use this lease, but as you go further along you might want to customize it (with legal guidance of course).

I use Microsoft Publisher for mine. It came as part of the MS Office business package. They have a template for realtors or reas estate, which I used.

What about faux copper or tin? I purchased a roll of it from Amazon to put up as a backsplash in a rental. I never got around to putting it up, but it seemed pretty cheap and easy (and nice looking). Do a search for "Plastic Antique Copper Kitchen Backsplash Wall Covering Wc-20- 26 Ft. Roll X 2ft.ul " Only about $120 a roll.

I rented a unit over the phone last year without meeting the people and without them seeing the place (just pictures). They were a military officer and family that were going to be moving to the area for a year and needed a place quickly and were unable to do a house hunting trip. I did screen as normal, thouroughly checked them out, and had many conversations with them on the phone prior to renting. I also had a couple of other folks at the same time I was considering who were not going to be able to check out places ahead of time either (all military). They moved in last July and have been perfect tenants. The only issue is that there couch wouldn't fit down the basement stairs so they had to put it in the kitchen (they may or may not have figured that out if they had looked at it in person). It all depends on who it is and why they are moving. For military folks, I wouldn't hesitate to use this process as long as everything else checked out. After that experience, I have started making video tours of my places as they turn over for placement on You tube, so my prospects will have a better idea of how the houses look.

Not to hijack the thread, but I purchased a property last year and it was in good condition, so I placed an ad for it the day I purchased it. I paid a contractor to do a couple of repairs a week after I placed the ad (i.e. fixed a broken window, repaired a rotten place in the roof, glued down some carpet that was coming up, re-did a brick patio that had some raised places, etc.). I don't think these minor fixes kept it from being rentable at the time and I did have it "placed in service" per the IRA definition. Is the $2000 deductible I paid for repairs/materials deductible or should it be added to the cost basis?

I have had people who want to pay in advance for a discounted rent. However, In my state (Virginia), landlord is required to put any extra rent in an escrow account and you only have access to it once the new month comes around. You might want to check your state's laws. In my situation, it just seems to be too much of a hassle.

Where does prospect #1 plan to keep their 2 rabbits? My mom had renters next door who let their rabbits hop around in the basement. The place was a disaster when they moved out--and those 2 bunnies turned into 20 very quickly. Is the cat male or female, de-clawed, spayed/neutured? I would more readily accept a declawed, neutered female cat then a male outdoor cat (males mark their territory by spraying urine everywhere). Will you be collecting monthly pet rent? I charge $25 per pet per month. Also, I charge an extra deposit of $500 per animal. The potential for damage here is huge. I had some folks living next door to me who were renting and they had a mini zoo like you describe here. Nice people, put their home was disgusting. If you rent to these people, visit their current home to see how they live.

That said, I think I would go with prospect #2. Even though they may not rent as long, they would probably do less damage over time.