*** Official Landlord Thread *** (3 Viewers)

[comfortably numb]

As I am thinking of jumping into RE, I decided to get my RE license.

About a month in to a 3 month course.

Figured can't hurt. Also a long time friend of mine I started speaking to recently has told me he has just opened up his own brokerage and would love for me to help him out.

Well see,

Def will say anyone who has time and ($400 in NJ) the course is an amazing wealth of knowledge.

 

[Please See Mine]

I will look through the thread for more stuff, but who do you find is the best/most cost-effective for background checks? Renting out my house, so first-time landlord (ugh).

 

[Dragons]

I will look through the thread for more stuff, but who do you find is the best/most cost-effective for background checks? Renting out my house, so first-time landlord (ugh).

I'll be in this boat in the near future. Scary, but necessary. I just ordered the book recommended earlier in the thread and will read all 61 pages of the Official Real Estate Forum thread.

 

[Ignoramus]

:bluestar:

 

[Please See Mine]

You shouldn't be paying utilities and renters won't balk at that. I recently put a clause in my leases that the tenants are responsible for any repairs under $100 and a $100 deductible for anything else higher. You'd be surprised how much this cuts down on repairs and damage.

Is there anything that you would consider in lieu of this clause to make you feel better about not getting nickel and dimed? My gf and I are negotiating a lease with our new LL and she doesn't like this clause because she feels like it will allow him to evade responsibility. I'm pretty much indifferent.

 

[BassNBrew]

You shouldn't be paying utilities and renters won't balk at that. I recently put a clause in my leases that the tenants are responsible for any repairs under $100 and a $100 deductible for anything else higher. You'd be surprised how much this cuts down on repairs and damage.

Is there anything that you would consider in lieu of this clause to make you feel better about not getting nickel and dimed? My gf and I are negotiating a lease with our new LL and she doesn't like this clause because she feels like it will allow him to evade responsibility. I'm pretty much indifferent.

A couple of thoughts on this...1. Charging the tenants for any repairs they didn't cause is not legal in some places and could potentially nullify the lease.2. Your sink is leaking into the cabinet and then through to the sub-floor. Is the tenant paying for the repair (or 1st $100) more likely to report it or ignore it.I'm cheap and I'm trying to maximize LL profit...I still take responsibility for maintaining my property.

 

[The Ref]

I just sent the below to a good freind that owns some investment property looking for her advice. I figured I'd post it here and see what you all would come up with.

So this is the house in my sights for the time being. It was just lowered to $205K. Of course it was listed as under contingency last week and something fell though and I'm fearful that the roof situation is a little worse then they are letting on. The roof aside for a moment.......I asked my realtor to look at recent rents in the XXX area. Everything with a 4/3 plan is going for $1900-2200 a month. It's a popular location as YYY Elementary (where we plan to send Little Ref) is in walking distance. This is 4/3 with 2500 Sq ft (a touch higher then others) and a pool (I'd guess that would be desirable, esp with a family being the target market). I'm conservatively estimating a cleaned up version of this house would go for $2000 a month.The idea is to put 20% down or ~$41K. Mortgage the remaining $165K over 30 years @ roughly 4%. Factor in a 1.7% tax rate (based on history), $75 a month for HOA and $250 a month ($3K Anum) for insurance = $1,400 a month nut. Thats a ~ $700 free cash flow and ~$240 Equity accrual a month.So what am I missing?

 

[BassNBrew]

I just sent the below to a good freind that owns some investment property looking for her advice. I figured I'd post it here and see what you all would come up with.

So this is the house in my sights for the time being. It was just lowered to $205K. Of course it was listed as under contingency last week and something fell though and I'm fearful that the roof situation is a little worse then they are letting on. The roof aside for a moment.......I asked my realtor to look at recent rents in the XXX area. Everything with a 4/3 plan is going for $1900-2200 a month. It's a popular location as YYY Elementary (where we plan to send Little Ref) is in walking distance. This is 4/3 with 2500 Sq ft (a touch higher then others) and a pool (I'd guess that would be desirable, esp with a family being the target market). I'm conservatively estimating a cleaned up version of this house would go for $2000 a month.The idea is to put 20% down or ~$41K. Mortgage the remaining $165K over 30 years @ roughly 4%. Factor in a 1.7% tax rate (based on history), $75 a month for HOA and $250 a month ($3K Anum) for insurance = $1,400 a month nut. Thats a ~ $700 free cash flow and ~$240 Equity accrual a month.So what am I missing?

Pools are a pita and usually a liability. All else being equal, buy the same house for $10k less w/o the pool. That being said, maybe that home doesn't exist.

What you are missing is the return the $41k would generate elsewhere.

I don't know your market, but that is an excellent return on that purchase price. Generally you will find better returns in the 1200-1500 sf range. If you see potential appreciation this could be a home run.

 

[Bull Dozier]

Basically blockdotting this thread. My current situation:

Bought my first house in 2001. It was a depressed neighborhood, but it was supposed to be getting revitalized with some nearby development. Did some cosmetic repairs (house was built in 1908) and tried to get out ~2005. Couldn't get any interest. Ended up staying, then the market crashed. Revitalization never came to the neighborhood, and my wife started seeing drug deals go down in the alley behind the house. With small kids, this wasn't accetable.

Friends of ours mother died and the family needed to sell the house. They gave us a sweet deal. Refinanced old house to lower payment, and I was able to swing both mortgages (just barely). At the same time, a friend of mine got divorced and had to walk away from their house because neither could afford it post devorce. He's renting my old house currently, for about 60% of the mortgage, so it is negative cash flow each month.

The city just found out it is a rental so they did an inspection. Everything had to be brought up to code, so that was a lot of work, and some stuff I had to farm out. That hurt considering I'm not making any money.

House is currently 25k negative equity. It will be a long time before I can move it. I'll be watching this thread to get some tips in case my buddy moves out. The good is that I could probably rent it for more. The bad is the quality of tenant for this neighborhood would be less than desireable.

 

[The Ref]

I just sent the below to a good freind that owns some investment property looking for her advice. I figured I'd post it here and see what you all would come up with.

So this is the house in my sights for the time being. It was just lowered to $205K. Of course it was listed as under contingency last week and something fell though and I'm fearful that the roof situation is a little worse then they are letting on. The roof aside for a moment.......I asked my realtor to look at recent rents in the XXX area. Everything with a 4/3 plan is going for $1900-2200 a month. It's a popular location as YYY Elementary (where we plan to send Little Ref) is in walking distance. This is 4/3 with 2500 Sq ft (a touch higher then others) and a pool (I'd guess that would be desirable, esp with a family being the target market). I'm conservatively estimating a cleaned up version of this house would go for $2000 a month.The idea is to put 20% down or ~$41K. Mortgage the remaining $165K over 30 years @ roughly 4%. Factor in a 1.7% tax rate (based on history), $75 a month for HOA and $250 a month ($3K Anum) for insurance = $1,400 a month nut. Thats a ~ $700 free cash flow and ~$240 Equity accrual a month.So what am I missing?

Pools are a pita and usually a liability. All else being equal, buy the same house for $10k less w/o the pool. That being said, maybe that home doesn't exist.

What you are missing is the return the $41k would generate elsewhere.

I don't know your market, but that is an excellent return on that purchase price. Generally you will find better returns in the 1200-1500 sf range. If you see potential appreciation this could be a home run.

I get the point about the pool, but I know a little something about them and since the target market is a young family I think the pool is an asset. That said if I could find the same house without it for less money I'd take it. Your point is sound.

$41K gets me $940 of total return per month, assuming it's rented and the house doesn't collapse. Assuming neither of these things happen that's a much higher then expected rate of return compared to a Bond.

I would like to do a smaller deal in the $150K range for a 3/2 1500 Sqft..... but the rents are lower and the numbers aren't as juicy. I'm going to keep looking however but I really like this deal.

Thanks for the feedback GB.

 

[BassNBrew]

I just sent the below to a good freind that owns some investment property looking for her advice. I figured I'd post it here and see what you all would come up with.

So this is the house in my sights for the time being. It was just lowered to $205K. Of course it was listed as under contingency last week and something fell though and I'm fearful that the roof situation is a little worse then they are letting on. The roof aside for a moment.......I asked my realtor to look at recent rents in the XXX area. Everything with a 4/3 plan is going for $1900-2200 a month. It's a popular location as YYY Elementary (where we plan to send Little Ref) is in walking distance. This is 4/3 with 2500 Sq ft (a touch higher then others) and a pool (I'd guess that would be desirable, esp with a family being the target market). I'm conservatively estimating a cleaned up version of this house would go for $2000 a month.The idea is to put 20% down or ~$41K. Mortgage the remaining $165K over 30 years @ roughly 4%. Factor in a 1.7% tax rate (based on history), $75 a month for HOA and $250 a month ($3K Anum) for insurance = $1,400 a month nut. Thats a ~ $700 free cash flow and ~$240 Equity accrual a month.So what am I missing?

Pools are a pita and usually a liability. All else being equal, buy the same house for $10k less w/o the pool. That being said, maybe that home doesn't exist.

What you are missing is the return the $41k would generate elsewhere.

I don't know your market, but that is an excellent return on that purchase price. Generally you will find better returns in the 1200-1500 sf range. If you see potential appreciation this could be a home run.

I get the point about the pool, but I know a little something about them and since the target market is a young family I think the pool is an asset. That said if I could find the same house without it for less money I'd take it. Your point is sound.

$41K gets me $940 of total return per month, assuming it's rented and the house doesn't collapse. Assuming neither of these things happen that's a much higher then expected rate of return compared to a Bond.

I would like to do a smaller deal in the $150K range for a 3/2 1500 Sqft..... but the rents are lower and the numbers aren't as juicy. I'm going to keep looking however but I really like this deal.

Thanks for the feedback GB.

I just sent the below to a good freind that owns some investment property looking for her advice. I figured I'd post it here and see what you all would come up with.

So this is the house in my sights for the time being. It was just lowered to $205K. Of course it was listed as under contingency last week and something fell though and I'm fearful that the roof situation is a little worse then they are letting on. The roof aside for a moment.......I asked my realtor to look at recent rents in the XXX area. Everything with a 4/3 plan is going for $1900-2200 a month. It's a popular location as YYY Elementary (where we plan to send Little Ref) is in walking distance. This is 4/3 with 2500 Sq ft (a touch higher then others) and a pool (I'd guess that would be desirable, esp with a family being the target market). I'm conservatively estimating a cleaned up version of this house would go for $2000 a month.The idea is to put 20% down or ~$41K. Mortgage the remaining $165K over 30 years @ roughly 4%. Factor in a 1.7% tax rate (based on history), $75 a month for HOA and $250 a month ($3K Anum) for insurance = $1,400 a month nut. Thats a ~ $700 free cash flow and ~$240 Equity accrual a month.So what am I missing?

Pools are a pita and usually a liability. All else being equal, buy the same house for $10k less w/o the pool. That being said, maybe that home doesn't exist.

What you are missing is the return the $41k would generate elsewhere.

I don't know your market, but that is an excellent return on that purchase price. Generally you will find better returns in the 1200-1500 sf range. If you see potential appreciation this could be a home run.

I get the point about the pool, but I know a little something about them and since the target market is a young family I think the pool is an asset. That said if I could find the same house without it for less money I'd take it. Your point is sound.

$41K gets me $940 of total return per month, assuming it's rented and the house doesn't collapse. Assuming neither of these things happen that's a much higher then expected rate of return compared to a Bond.

I would like to do a smaller deal in the $150K range for a 3/2 1500 Sqft..... but the rents are lower and the numbers aren't as juicy. I'm going to keep looking however but I really like this deal.

Thanks for the feedback GB.

What area are you in? Here in Charlotte pools are boat anchors. The one home with a pool that I handle we have a lease add'm where the tenant is req'd to use a professional serice to open/close the pool or hire the owner for $200.

You nailed it on the return. You asked what you were missing and it was about $400 a year in cd interest on the $41000. I personally think real estate is the place to be moving into.

I'm shocked at your last statement. It pretty much goes against the gain of anything happening in most places. Here are some estimates from my area.

$50k gets $600

$100k gets $900

$150k gets $1300

$200k gets $1500

$300k gets $1900

$400k gets $2200

$700k gets $3500

$1mm gets $4000

Although the high end numbers move up drastically during peak demand while the low end numbers stay contast. Of course there's more room for appreciation on the upper end.

 

[The Ref]

I just sent the below to a good freind that owns some investment property looking for her advice. I figured I'd post it here and see what you all would come up with.

So this is the house in my sights for the time being. It was just lowered to $205K. Of course it was listed as under contingency last week and something fell though and I'm fearful that the roof situation is a little worse then they are letting on. The roof aside for a moment.......I asked my realtor to look at recent rents in the XXX area. Everything with a 4/3 plan is going for $1900-2200 a month. It's a popular location as YYY Elementary (where we plan to send Little Ref) is in walking distance. This is 4/3 with 2500 Sq ft (a touch higher then others) and a pool (I'd guess that would be desirable, esp with a family being the target market). I'm conservatively estimating a cleaned up version of this house would go for $2000 a month.The idea is to put 20% down or ~$41K. Mortgage the remaining $165K over 30 years @ roughly 4%. Factor in a 1.7% tax rate (based on history), $75 a month for HOA and $250 a month ($3K Anum) for insurance = $1,400 a month nut. Thats a ~ $700 free cash flow and ~$240 Equity accrual a month.So what am I missing?

Pools are a pita and usually a liability. All else being equal, buy the same house for $10k less w/o the pool. That being said, maybe that home doesn't exist.

What you are missing is the return the $41k would generate elsewhere.

I don't know your market, but that is an excellent return on that purchase price. Generally you will find better returns in the 1200-1500 sf range. If you see potential appreciation this could be a home run.

I get the point about the pool, but I know a little something about them and since the target market is a young family I think the pool is an asset. That said if I could find the same house without it for less money I'd take it. Your point is sound.

$41K gets me $940 of total return per month, assuming it's rented and the house doesn't collapse. Assuming neither of these things happen that's a much higher then expected rate of return compared to a Bond.

I would like to do a smaller deal in the $150K range for a 3/2 1500 Sqft..... but the rents are lower and the numbers aren't as juicy. I'm going to keep looking however but I really like this deal.

Thanks for the feedback GB.

>

I just sent the below to a good freind that owns some investment property looking for her advice. I figured I'd post it here and see what you all would come up with.

So this is the house in my sights for the time being. It was just lowered to $205K. Of course it was listed as under contingency last week and something fell though and I'm fearful that the roof situation is a little worse then they are letting on. The roof aside for a moment.......I asked my realtor to look at recent rents in the XXX area. Everything with a 4/3 plan is going for $1900-2200 a month. It's a popular location as YYY Elementary (where we plan to send Little Ref) is in walking distance. This is 4/3 with 2500 Sq ft (a touch higher then others) and a pool (I'd guess that would be desirable, esp with a family being the target market). I'm conservatively estimating a cleaned up version of this house would go for $2000 a month.The idea is to put 20% down or ~$41K. Mortgage the remaining $165K over 30 years @ roughly 4%. Factor in a 1.7% tax rate (based on history), $75 a month for HOA and $250 a month ($3K Anum) for insurance = $1,400 a month nut. Thats a ~ $700 free cash flow and ~$240 Equity accrual a month.So what am I missing?

Pools are a pita and usually a liability. All else being equal, buy the same house for $10k less w/o the pool. That being said, maybe that home doesn't exist.

What you are missing is the return the $41k would generate elsewhere.

I don't know your market, but that is an excellent return on that purchase price. Generally you will find better returns in the 1200-1500 sf range. If you see potential appreciation this could be a home run.

I get the point about the pool, but I know a little something about them and since the target market is a young family I think the pool is an asset. That said if I could find the same house without it for less money I'd take it. Your point is sound.

$41K gets me $940 of total return per month, assuming it's rented and the house doesn't collapse. Assuming neither of these things happen that's a much higher then expected rate of return compared to a Bond.

I would like to do a smaller deal in the $150K range for a 3/2 1500 Sqft..... but the rents are lower and the numbers aren't as juicy. I'm going to keep looking however but I really like this deal.

Thanks for the feedback GB.

What area are you in? Here in Charlotte pools are boat anchors. The one home with a pool that I handle we have a lease add'm where the tenant is req'd to use a professional serice to open/close the pool or hire the owner for $200.

You nailed it on the return. You asked what you were missing and it was about $400 a year in cd interest on the $41000. I personally think real estate is the place to be moving into.

I'm shocked at your last statement. It pretty much goes against the gain of anything happening in most places. Here are some estimates from my area.

$50k gets $600

$100k gets $900

$150k gets $1300

$200k gets $1500

$300k gets $1900

$400k gets $2200

$700k gets $3500

$1mm gets $4000

Although the high end numbers move up drastically during peak demand while the low end numbers stay contast. Of course there's more room for appreciation on the upper end.

About 15-20 min south of West Palm Beach and 15 min north of Boca Raton.

Im reviewing all of the rented properties in the last 6 months and I'm starting to think you may be right. I think I may have underestimated the Cash flow on some of the more moderate houses that seem to be priced in the $150K area.

 

[Zegras11]

I just sent the below to a good freind that owns some investment property looking for her advice. I figured I'd post it here and see what you all would come up with.

So this is the house in my sights for the time being. It was just lowered to $205K. Of course it was listed as under contingency last week and something fell though and I'm fearful that the roof situation is a little worse then they are letting on. The roof aside for a moment.......I asked my realtor to look at recent rents in the XXX area. Everything with a 4/3 plan is going for $1900-2200 a month. It's a popular location as YYY Elementary (where we plan to send Little Ref) is in walking distance. This is 4/3 with 2500 Sq ft (a touch higher then others) and a pool (I'd guess that would be desirable, esp with a family being the target market). I'm conservatively estimating a cleaned up version of this house would go for $2000 a month.The idea is to put 20% down or ~$41K. Mortgage the remaining $165K over 30 years @ roughly 4%. Factor in a 1.7% tax rate (based on history), $75 a month for HOA and $250 a month ($3K Anum) for insurance = $1,400 a month nut. Thats a ~ $700 free cash flow and ~$240 Equity accrual a month.So what am I missing?

Pools are a pita and usually a liability. All else being equal, buy the same house for $10k less w/o the pool. That being said, maybe that home doesn't exist.

What you are missing is the return the $41k would generate elsewhere.

I don't know your market, but that is an excellent return on that purchase price. Generally you will find better returns in the 1200-1500 sf range. If you see potential appreciation this could be a home run.

I get the point about the pool, but I know a little something about them and since the target market is a young family I think the pool is an asset. That said if I could find the same house without it for less money I'd take it. Your point is sound.

$41K gets me $940 of total return per month, assuming it's rented and the house doesn't collapse. Assuming neither of these things happen that's a much higher then expected rate of return compared to a Bond.

I would like to do a smaller deal in the $150K range for a 3/2 1500 Sqft..... but the rents are lower and the numbers aren't as juicy. I'm going to keep looking however but I really like this deal.

Thanks for the feedback GB.

Repairs could run you $100-200/mo on average... you are getting 27.5% cash on cash return. 940*12/41k And the deprecation allowance will make most of that tax free. Sign me up!

 

[Please See Mine]

Ok, I own my house and am moving in with my girlfriend and renting mine out, so this is my first time becoming a LL.

I have a lot of interest and I am trying to make the best decision in all respects. I have one very good lead and they are ready to sign. They have credit scores of 716 and 774. Am I insane to give them a second thought? Here are my points of hesitation:

1) They are moving from California (to Philadelphia area) and don't know the area, so they don't know if they will stay in the property for more than a year. If they like it enough, then probably.

2) One of them has a 3-year position here at $40K/year (with small raises each year, not specified in commitment letter). The other has no job lined up here, but he has been a bellman for 14 years and has a small supplemental income. Currently grossing around $3500/mo.

3) They have a realtor (since they can't be here to look), so I probably have to pay him some kind of fee. He said industry standard is half-month's rent, but whatever I feel is fair is fine with him. He has done some legwork, but I don't feel like I really need him in order to find a good tenant, so I don't love paying that.

I have another prospect who is from the area and definitely wants to stay for at least 3 years, as she has a daughter entering 9th grade. Waiting for her app, but probably grosses around 5,000/mo, I would guess, based on profession. I am following up with another prospect that sounds good today.

I feel like I want to have as much information as possible to make the best decision, but also fear overthinking the people who are ready to go. The reason that the security of a longer-term tenant is important to me is that my gf will be renting our own place for 2-3 years, and then probably buying, so not having to worry about finding new tenants for the whole time would be nice. (Though obviously there are no guarantees with anyone).

Any thoughts/advice/mockery is appreciated.

edit: rent is $1400/mo.

 

[Please See Mine]

You shouldn't be paying utilities and renters won't balk at that. I recently put a clause in my leases that the tenants are responsible for any repairs under $100 and a $100 deductible for anything else higher. You'd be surprised how much this cuts down on repairs and damage.

Is there anything that you would consider in lieu of this clause to make you feel better about not getting nickel and dimed? My gf and I are negotiating a lease with our new LL and she doesn't like this clause because she feels like it will allow him to evade responsibility. I'm pretty much indifferent.

A couple of thoughts on this...1. Charging the tenants for any repairs they didn't cause is not legal in some places and could potentially nullify the lease.2. Your sink is leaking into the cabinet and then through to the sub-floor. Is the tenant paying for the repair (or 1st $100) more likely to report it or ignore it.I'm cheap and I'm trying to maximize LL profit...I still take responsibility for maintaining my property.

Thanks for the reply. In further talking to the landlord, I feel pretty good about him being responsible for the property and not trying to screw us. There is a clause in the lease, also, that states that owner is responsible for keeping premises in good condition and make necessary repairs, unless caused by tenant. So it's not so worrisome.

 

[BassNBrew]

Ok, I own my house and am moving in with my girlfriend and renting mine out, so this is my first time becoming a LL.

I have a lot of interest and I am trying to make the best decision in all respects. I have one very good lead and they are ready to sign. They have credit scores of 716 and 774. Am I insane to give them a second thought? Here are my points of hesitation:

1) They are moving from California (to Philadelphia area) and don't know the area, so they don't know if they will stay in the property for more than a year. If they like it enough, then probably.

2) One of them has a 3-year position here at $40K/year (with small raises each year, not specified in commitment letter). The other has no job lined up here, but he has been a bellman for 14 years and has a small supplemental income. Currently grossing around $3500/mo.

3) They have a realtor (since they can't be here to look), so I probably have to pay him some kind of fee. He said industry standard is half-month's rent, but whatever I feel is fair is fine with him. He has done some legwork, but I don't feel like I really need him in order to find a good tenant, so I don't love paying that.

I have another prospect who is from the area and definitely wants to stay for at least 3 years, as she has a daughter entering 9th grade. Waiting for her app, but probably grosses around 5,000/mo, I would guess, based on profession. I am following up with another prospect that sounds good today.

I feel like I want to have as much information as possible to make the best decision, but also fear overthinking the people who are ready to go. The reason that the security of a longer-term tenant is important to me is that my gf will be renting our own place for 2-3 years, and then probably buying, so not having to worry about finding new tenants for the whole time would be nice. (Though obviously there are no guarantees with anyone).

Any thoughts/advice/mockery is appreciated.

edit: rent is $1400/mo.

My policy is first qualified person to bring me money and signs contract gets the property. Unless one of them is going to sign a longer lease now, it's all a bunch of talk imo.

The Realtor thing is interesting. In NYC the tenant pays the Realtor to find a place. Here the owner pays a PM to lease a place and the PM pays the Realtor a referrel fee of 10-20% of the first month's rent. Realtors don't usually work with FRBOs in this market, but not all markets have rentals in MLS. Unless this Realtor is doing the screening, writing the contract, advertising/marketing; 1/2 month seems high.

You mention one person has a daughter like it might impact your decision. Being very careful going down this road. It's illeagal to discriminate based on familial status.

 

[Please See Mine]

Thanks for the feedback.

Definitely would not be making any decision based on familial status (though I do understand that I need to be very careful about any potential perceived discrimination). I was just mentioning it in the sense that it made me more confident that they would stay for more than a year (as the woman indicated).

 

[BassNBrew]

Thanks for the feedback.

Definitely would not be making any decision based on familial status (though I do understand that I need to be very careful about any potential perceived discrimination). I was just mentioning it in the sense that it made me more confident that they would stay for more than a year (as the woman indicated).

I understand and didn't mean to imply that you were doing anything wrong.

If you're looking for a longer term tenant the best thing would be to find someone with a bankruptcy or a foreclousure/short sale in their past but otherwise stellar payment history. I use a unique scoring system instead of the FICO score. Basically it ignores debt and focuses solely on payment history.

 

[comfortably numb]

Thanks for the feedback.

Definitely would not be making any decision based on familial status (though I do understand that I need to be very careful about any potential perceived discrimination). I was just mentioning it in the sense that it made me more confident that they would stay for more than a year (as the woman indicated).

I understand and didn't mean to imply that you were doing anything wrong.

If you're looking for a longer term tenant the best thing would be to find someone with a bankruptcy or a foreclousure/short sale in their past but otherwise stellar payment history. I use a unique scoring system instead of the FICO score. Basically it ignores debt and focuses solely on payment history.

One interesting thing i learned in RE class (NJ) is if you are renting out an apartment in a 2-3 family house you own and live in.

You can discriminate all you want except with regard to race.

You could legally put up a for rent sign saying only hot milfs apply, no muslims need apply etc...

 

[BassNBrew]

Thanks for the feedback.

Definitely would not be making any decision based on familial status (though I do understand that I need to be very careful about any potential perceived discrimination). I was just mentioning it in the sense that it made me more confident that they would stay for more than a year (as the woman indicated).

I understand and didn't mean to imply that you were doing anything wrong.

If you're looking for a longer term tenant the best thing would be to find someone with a bankruptcy or a foreclousure/short sale in their past but otherwise stellar payment history. I use a unique scoring system instead of the FICO score. Basically it ignores debt and focuses solely on payment history.

One interesting thing i learned in RE class (NJ) is if you are renting out an apartment in a 2-3 family house you own and live in.

You can discriminate all you want except with regard to race.

You could legally put up a for rent sign saying only hot milfs apply, no muslims need apply etc...

Two comments on that. In this state I believe you can discriminate based on race in that situation. However, if you have a real estate license, all that goes out the window and you can't discriminate across the 7 protected classes in that situation.

 

[ghostguy123]

I will look through the thread for more stuff, but who do you find is the best/most cost-effective for background checks? Renting out my house, so first-time landlord (ugh).

I'll be in this boat in the near future. Scary, but necessary. I just ordered the book recommended earlier in the thread and will read all 61 pages of the Official Real Estate Forum thread.

Bump....so where is this 61 page Official Real Estate thread??

Did several searches, no luck. Might be throwing my hat in the ring here if the wife approves later today.

 

[gmbacm]

I will look through the thread for more stuff, but who do you find is the best/most cost-effective for background checks? Renting out my house, so first-time landlord (ugh).

I'll be in this boat in the near future. Scary, but necessary. I just ordered the book recommended earlier in the thread and will read all 61 pages of the Official Real Estate Forum thread.

Bump....so where is this 61 page Official Real Estate thread??

Did several searches, no luck. Might be throwing my hat in the ring here if the wife approves later today.

when searching check "titles only" and you will have much more success.

 

[ghostguy123]

when searching check "titles only" and you will have much more success.

No luck

 

[Ignoramus]

I will look through the thread for more stuff, but who do you find is the best/most cost-effective for background checks? Renting out my house, so first-time landlord (ugh).

I'll be in this boat in the near future. Scary, but necessary. I just ordered the book recommended earlier in the thread and will read all 61 pages of the Official Real Estate Forum thread.

Bump....so where is this 61 page Official Real Estate thread??

Did several searches, no luck. Might be throwing my hat in the ring here if the wife approves later today.

Here you are: http://forums.footballguys.com/forum/index.php?showtopic=223924

 

[gmbacm]

when searching check "titles only" and you will have much more success.

No luck

searching "real estate" with titles only checked, its the first thread found for me.:

 

[STEADYMOBBIN 22]

Looking to rent our 5 bedroom SFH in the next year or two. Realtor friend said we could easily get $2,800/mo. My concern is if somebody can afford $2,800 / mo . then they are on a position to buy.

I want to split the house up and split the upper two levels from the basement. This means installing a kitchen in he basement and a laundry room upstairs. More upfront cost but I can charge more collectively and (hopefully) shield us slightly in case one of the renters flakes out.

We plan on moving to a nicer area and possibly out of Maryland entirely.

What kind of fees do property management companies charge and is it even worth it?

PS- I'm handy.

 

[Rattle and Hum]

Property management fees in our area are 3/4 month rent to place a tenant and 10%/month thereafter.

Background checks: Check local court records (ours are online) for evictions and other civil cases. This site allows you to check credit with the tenant paying: https://biggerpockets.mysmartmove.com/tenant-credit-check.html

 

[STEADYMOBBIN 22]

Property management fees in our area are 3/4 month rent to place a tenant and 10%/month thereafter.

Background checks: Check local court records (ours are online) for evictions and other civil cases. This site allows you to check credit with the tenant paying: https://biggerpockets.mysmartmove.com/tenant-credit-check.html

Am I reading that first part wrong? 3/4 months of tent to place a tenant???? So in my case $2,800 X 3 = $8,400 + $280 x 12 = $11,760 a year??????Do the guarantee rent if the renter flakes out?

 

[Rattle and Hum]

Property management fees in our area are 3/4 month rent to place a tenant and 10%/month thereafter.

Background checks: Check local court records (ours are online) for evictions and other civil cases. This site allows you to check credit with the tenant paying: https://biggerpockets.mysmartmove.com/tenant-credit-check.html

Am I reading that first part wrong? 3/4 months of tent to place a tenant???? So in my case $2,800 X 3 = $8,400 + $280 x 12 = $11,760 a year??????Do the guarantee rent if the renter flakes out?

Three-fourth of a month rent (75%), so, $2100 if rent is $2800/mo. GL

 

[moleculo]

Hey BassNBrew> are you open to managing a property in Indianland, SC?

ETA: actually, I have a few questions for you, as you know the Charlotte market...

1. how quickly are you able to find renters in the $1600-$2k range?

2. how stable do they tend to be, in terms of headaches/typical BS?

3. how likely is it that the owners have to go multiple months with the house being vacant?

4. if I send you a PM with a link to my house on Zillow, can you pls give me a good assessment of rentability and what it could go for? (it does have a fenced back yard, backing up to woods).

We put our house on the market yesterday and found a house that we love and want to pot an offer on. I can swing 20% down on the new house regardless of my current house selling, so I'm considering buying that house before this one sells. That may require renting, and after looking at it a while, renting for a few years could be very lucrative.

Thanks!

 

[BassNBrew]

Hey BassNBrew> are you open to managing a property in Indianland, SC?

ETA: actually, I have a few questions for you, as you know the Charlotte market...

1. how quickly are you able to find renters in the $1600-$2k range?

2. how stable do they tend to be, in terms of headaches/typical BS?

3. how likely is it that the owners have to go multiple months with the house being vacant?

4. if I send you a PM with a link to my house on Zillow, can you pls give me a good assessment of rentability and what it could go for? (it does have a fenced back yard, backing up to woods).

We put our house on the market yesterday and found a house that we love and want to pot an offer on. I can swing 20% down on the new house regardless of my current house selling, so I'm considering buying that house before this one sells. That may require renting, and after looking at it a while, renting for a few years could be very lucrative.

Thanks!

I'm not licensed for SC.

1. If the home is in outstanding condition and there isn't anything wrong with the area, schools, or layout, it's been less than 30 days and usually a couple of weeks.

2. Tenants in that price range aren't an issue. They do tend to churn due to eventually purchasing or job relo.

3. In this day and age, very unlikely. Supply in that price range is diminishing as owners stuck with homes a few years ago are now selling. A lot of the supply is/was people who never intended to be landlords. Demand is increasing. The only times I have homes sit is when they are really over priced or the owner won't paint/carpet as needed. Sometimes the ones backing up to busy roads can be a pain, but even those can be moved if they are in good condition.

4. I'm not too comfortable with that. I will give you a link to my website so your can compare pricing. For example, home xyz in Concord might rent for $1500 in Concord, $1800 in Lake Norman, and $2100 in south Charlotte. I do add $100 for fenced yards if you're pet friendly. The fence also makes it rent quicker as 70% of the market has a pet and only 10% has a fence.

Probably very lucrative after the write offs for you. If you do hire a PM (and speak to a tax accountant because I'm not giving you tax advice), keep involved enough in the process to be able to claim that you are not considered passive. http://www.investopedia.com/terms/r/rentalreal-estate-loss-allowance.asp That may impact your ability to deduct losses. Income is a factor too. In addition to standard property mngt, you can hire a company for placement only. That gets your property in mld and marketed, gets you screening, and keeps you from having to field calls and show the property. You then handle the rent collection and maintenance stuff. If you're local and don't travel a bunch, this is a good option. Feel free to pm me.

I'll be glad to assist via pm.

 

[moleculo]

Hey BassNBrew> are you open to managing a property in Indianland, SC?

ETA: actually, I have a few questions for you, as you know the Charlotte market...

1. how quickly are you able to find renters in the $1600-$2k range?

2. how stable do they tend to be, in terms of headaches/typical BS?

3. how likely is it that the owners have to go multiple months with the house being vacant?

4. if I send you a PM with a link to my house on Zillow, can you pls give me a good assessment of rentability and what it could go for? (it does have a fenced back yard, backing up to woods).

We put our house on the market yesterday and found a house that we love and want to pot an offer on. I can swing 20% down on the new house regardless of my current house selling, so I'm considering buying that house before this one sells. That may require renting, and after looking at it a while, renting for a few years could be very lucrative.

Thanks!

I'm not licensed for SC.

1. If the home is in outstanding condition and there isn't anything wrong with the area, schools, or layout, it's been less than 30 days and usually a couple of weeks.

2. Tenants in that price range aren't an issue. They do tend to churn due to eventually purchasing or job relo.

3. In this day and age, very unlikely. Supply in that price range is diminishing as owners stuck with homes a few years ago are now selling. A lot of the supply is/was people who never intended to be landlords. Demand is increasing. The only times I have homes sit is when they are really over priced or the owner won't paint/carpet as needed. Sometimes the ones backing up to busy roads can be a pain, but even those can be moved if they are in good condition.

4. I'm not too comfortable with that. I will give you a link to my website so your can compare pricing. For example, home xyz in Concord might rent for $1500 in Concord, $1800 in Lake Norman, and $2100 in south Charlotte. I do add $100 for fenced yards if you're pet friendly. The fence also makes it rent quicker as 70% of the market has a pet and only 10% has a fence.

Probably very lucrative after the write offs for you. If you do hire a PM (and speak to a tax accountant because I'm not giving you tax advice), keep involved enough in the process to be able to claim that you are not considered passive. http://www.investopedia.com/terms/r/rentalreal-estate-loss-allowance.asp That may impact your ability to deduct losses. Income is a factor too. In addition to standard property mngt, you can hire a company for placement only. That gets your property in mld and marketed, gets you screening, and keeps you from having to field calls and show the property. You then handle the rent collection and maintenance stuff. If you're local and don't travel a bunch, this is a good option. Feel free to pm me.

I'll be glad to assist via pm.

awesome, thanks. I think I'm convinced that renting this place out is the way to go, but I haven't convinced the wife. we are a single-income family and she is apprehensive about taking on two mortgages, as well as letting strangers live in our house (emotional attachment to this place).

I really don't think there is a downside - my mortgage is well below what rents would be, allowing a PM to do his thing and still allow a good bit of margin. If I can break even on this place, and if this place were to average 5% appreciation, I could be completely mortgage free within 5 years which would be fantastic. With no appreciation, I could be mortgage free in 10 years, which is also great. only real risks, as far as I can tell, are it sitting vacant for an extended period, renters trashing the place, the AC & hot water heater kicking it at the same time, stuff like that. I bought the house new 6 years ago and feel that everything is in good working order, not expecting anything to bite the bullet any time soon.

 

[Dragons]

Can anyone provide some tips on transitioning from one tenant to the next? Do you always plan for a month off, or do you try to schedule someone to move in immediately?

Our current tenant has gone incommunicado, probably because she hasn't paid June's rent yet. In may, she indicated she is closing on a house June 30th, "but may need a few extra days, depending how the closing goes".

How do I make sure I don't miss out on all of July?

Do you give 2 days notice of entrance and line up back to back viewings?

 

[Sabertooth]

Oof. I had a tenant plug a computer into an outlet and fried it. Not their fault of course. So they are scheming around now and asked my electrician to sign something. He didn't. They said they are calling the "city guy" on me now. Good tenants up until the cost themselves the opportunity to play WOW all the time.

 

[BassNBrew]

Oof. I had a tenant plug a computer into an outlet and fried it. Not their fault of course. So they are scheming around now and asked my electrician to sign something. He didn't. They said they are calling the "city guy" on me now. Good tenants up until the cost themselves the opportunity to play WOW all the time.

That's what their tenant insurance is for. Hopefully your lease outlines this.

 

[BassNBrew]

Can anyone provide some tips on transitioning from one tenant to the next? Do you always plan for a month off, or do you try to schedule someone to move in immediately?

Our current tenant has gone incommunicado, probably because she hasn't paid June's rent yet. In may, she indicated she is closing on a house June 30th, "but may need a few extra days, depending how the closing goes".

How do I make sure I don't miss out on all of July?

Do you give 2 days notice of entrance and line up back to back viewings?

I would have sent a late notice. I would call the tenant and let them know you'll be filing eviction papers if the rent isn't paid. Unfortunately banks seem to have stop doing Verification of Rent when someone is buying a home. My leases allow for entry at reasonable hours for the purpose of showing the property for rent or for sale.

Also, I don't allow a few extra days depending. If you think you'll need extra days, then put that down as your written out date and pay for them. If you're a pain in my butt, I won't sell you half loaves. of bread.

 

[Dragons]

Can anyone provide some tips on transitioning from one tenant to the next? Do you always plan for a month off, or do you try to schedule someone to move in immediately?

Our current tenant has gone incommunicado, probably because she hasn't paid June's rent yet. In may, she indicated she is closing on a house June 30th, "but may need a few extra days, depending how the closing goes".

How do I make sure I don't miss out on all of July?

Do you give 2 days notice of entrance and line up back to back viewings?

I would have sent a late notice. I would call the tenant and let them know you'll be filing eviction papers if the rent isn't paid. Unfortunately banks seem to have stop doing Verification of Rent when someone is buying a home. My leases allow for entry at reasonable hours for the purpose of showing the property for rent or for sale.

Also, I don't allow a few extra days depending. If you think you'll need extra days, then put that down as your written out date and pay for them. If you're a pain in my butt, I won't sell you half loaves. of bread.

I sent a late payment notice and a non-renewal of lease notice (giving her 30 days notice that June 30th is her last day).

I can't start the eviction process until 10 days after rent is due (so today). I have to serve a notice to quit, then allow 3 days to vacate, then file formal eviction on the 4th day. Formal eviction takes 4-6 weeks in CT.

So I can't force her out by the 30th. If she wants to squat, it may be August before she's finally out.

The lease allows entry. The lawyer I spoke to wants me to give 48 hours notice. I served noticed this morning that we will enter Friday for a walk-through.

I'm inclined to continue to give notice about showings and seek renters who are flexible with a move in date. I'll sue her in small claims for anything she still owes - based on her job, I should be able to easily garnish wages. But, if she does actually leave on the 30th and I don't start to show now, I may miss all of July too.

Last year, I had people contacting me in mid-June for an August 1st move-in.

 

[BassNBrew]

Can anyone provide some tips on transitioning from one tenant to the next? Do you always plan for a month off, or do you try to schedule someone to move in immediately?

Our current tenant has gone incommunicado, probably because she hasn't paid June's rent yet. In may, she indicated she is closing on a house June 30th, "but may need a few extra days, depending how the closing goes".

How do I make sure I don't miss out on all of July?

Do you give 2 days notice of entrance and line up back to back viewings?

I would have sent a late notice. I would call the tenant and let them know you'll be filing eviction papers if the rent isn't paid. Unfortunately banks seem to have stop doing Verification of Rent when someone is buying a home. My leases allow for entry at reasonable hours for the purpose of showing the property for rent or for sale.

Also, I don't allow a few extra days depending. If you think you'll need extra days, then put that down as your written out date and pay for them. If you're a pain in my butt, I won't sell you half loaves. of bread.

I sent a late payment notice and a non-renewal of lease notice (giving her 30 days notice that June 30th is her last day).

I can't start the eviction process until 10 days after rent is due (so today). I have to serve a notice to quit, then allow 3 days to vacate, then file formal eviction on the 4th day. Formal eviction takes 4-6 weeks in CT.

So I can't force her out by the 30th. If she wants to squat, it may be August before she's finally out.

The lease allows entry. The lawyer I spoke to wants me to give 48 hours notice. I served noticed this morning that we will enter Friday for a walk-through.

I'm inclined to continue to give notice about showings and seek renters who are flexible with a move in date. I'll sue her in small claims for anything she still owes - based on her job, I should be able to easily garnish wages. But, if she does actually leave on the 30th and I don't start to show now, I may miss all of July too.

Last year, I had people contacting me in mid-June for an August 1st move-in.

I'd start the eviction if she doesn't pay. PIA but gives you leverage. Not many renters have flexible move in dates. Hopefully you can nail this down and keep your vacancy to a min.

 

[moleculo]

so trying to calculate my costs vs rent, to make sure I will be good:

house is 6 years old, not anticipating any major issues (although appliances are GE and therefore crap)

estimated P&I, taxes, insurance: $1150 (accounts for non-owner-occupied taxes)

yard maintenance: $60 (want to make sure yard is well kept, don't want nastygrams from HOA)

HOA: $52

termite spray: $20 (applied once, yearly)

fertilizer: $60 (keep yard nice and green)

----------------

total monthly expenses: $1353

Assume rent = $1700 (probably could support up to $2k, I'm being conservative here)

mgt fee: 10%=$170

that leaves me with $176/month as cushion for any repairs, etc that need to be made...roughly 10%. Would you guys be comfortable with this cushion?

What other expenses do I need to be aware of?

 

[Random]

so trying to calculate my costs vs rent, to make sure I will be good:

house is 6 years old, not anticipating any major issues (although appliances are GE and therefore crap)

estimated P&I, taxes, insurance: $1150 (accounts for non-owner-occupied taxes)

yard maintenance: $60 (want to make sure yard is well kept, don't want nastygrams from HOA)

HOA: $52

termite spray: $20 (applied once, yearly)

fertilizer: $60 (keep yard nice and green)

----------------

total monthly expenses: $1353

Assume rent = $1700 (probably could support up to $2k, I'm being conservative here)

mgt fee: 10%=$170

that leaves me with $176/month as cushion for any repairs, etc that need to be made...roughly 10%. Would you guys be comfortable with this cushion?

What other expenses do I need to be aware of?

What is the value of the property?

 

[moleculo]

so trying to calculate my costs vs rent, to make sure I will be good:

house is 6 years old, not anticipating any major issues (although appliances are GE and therefore crap)

estimated P&I, taxes, insurance: $1150 (accounts for non-owner-occupied taxes)

yard maintenance: $60 (want to make sure yard is well kept, don't want nastygrams from HOA)

HOA: $52

termite spray: $20 (applied once, yearly)

fertilizer: $60 (keep yard nice and green)

----------------

total monthly expenses: $1353

Assume rent = $1700 (probably could support up to $2k, I'm being conservative here)

mgt fee: 10%=$170

that leaves me with $176/month as cushion for any repairs, etc that need to be made...roughly 10%. Would you guys be comfortable with this cushion?

What other expenses do I need to be aware of?

What is the value of the property?

I have it on the market for $320k right now, hoping to get $310k.

 

[Random]

Yikes. I think I'd sell.

Would you spend $300K on a $1700/mo rental?

 

[moleculo]

Yikes. I think I'd sell.

Would you spend $300K on a $1700/mo rental?

Trying to sell it right now. I'm about to put an offer in on another house with a long closing window, hoping this one sells first. If it doesn't sell, I need to be able to rent it.

I can cover 20% down without selling this house, but my mortgage would be higher than I'm really comfortable with. so, my plan is to buy new house with a 5 year arm (~2.75%), rent my current house for 4 years or so, sell it before the rate adjusts, and use equity to get in on a 10 or 15 year fixed. My ultimate goal is to be mortgage free around the time my kids are out of school (13 years from now) so I can start thinking about pre-retirement.

Again, I would prefer to sell my current house, but I'm trying to determine if I'm comfortable renting it which would allow me to buy before I sell.

also, $2k+ is probably doable. I've never watched the rental market though so I can't be sure what the market will bear. Trying to be conservative in my estimates to make sure I'm not going to put myself into a giant hole.

 

[Random]

Yikes. I think I'd sell.

Would you spend $300K on a $1700/mo rental?

Trying to sell it right now. I'm about to put an offer in on another house with a long closing window, hoping this one sells first. If it doesn't sell, I need to be able to rent it.

I can cover 20% down without selling this house, but my mortgage would be higher than I'm really comfortable with. so, my plan is to buy new house with a 5 year arm (~2.75%), rent my current house for 4 years or so, sell it before the rate adjusts, and use equity to get in on a 10 or 15 year fixed. My ultimate goal is to be mortgage free around the time my kids are out of school (13 years from now) so I can start thinking about pre-retirement.

Again, I would prefer to sell my current house, but I'm trying to determine if I'm comfortable renting it which would allow me to buy before I sell.

also, $2k+ is probably doable. I've never watched the rental market though so I can't be sure what the market will bear. Trying to be conservative in my estimates to make sure I'm not going to put myself into a giant hole.

Is there a reason its not selling? How long has it been on the market?

Are there others in your neighborhood that are rentals? The housing market has rebounded really well and its a sellers market nearly everywhere. That said, I understand RE is local, but if you're in an area that hasn't rebounded, you may want to find out why. Might not be a good place to be invested in for 4+ years.

 

[moleculo]

Yikes. I think I'd sell.

Would you spend $300K on a $1700/mo rental?

Trying to sell it right now. I'm about to put an offer in on another house with a long closing window, hoping this one sells first. If it doesn't sell, I need to be able to rent it.

I can cover 20% down without selling this house, but my mortgage would be higher than I'm really comfortable with. so, my plan is to buy new house with a 5 year arm (~2.75%), rent my current house for 4 years or so, sell it before the rate adjusts, and use equity to get in on a 10 or 15 year fixed. My ultimate goal is to be mortgage free around the time my kids are out of school (13 years from now) so I can start thinking about pre-retirement.

Again, I would prefer to sell my current house, but I'm trying to determine if I'm comfortable renting it which would allow me to buy before I sell.

also, $2k+ is probably doable. I've never watched the rental market though so I can't be sure what the market will bear. Trying to be conservative in my estimates to make sure I'm not going to put myself into a giant hole.

Is there a reason its not selling? How long has it been on the market?

Are there others in your neighborhood that are rentals? The housing market has rebounded really well and its a sellers market nearly everywhere. That said, I understand RE is local, but if you're in an area that hasn't rebounded, you may want to find out why. Might not be a good place to be invested in for 4+ years.

it's been on the market for all of a week. I know - i'm impatient. The house I want to buy appears to be a steal and I don't want to wait for mine to sell first. I'm sure it will sell, just trying to understand all of my outs.

 

[BassNBrew]

Yikes. I think I'd sell.

Would you spend $300K on a $1700/mo rental?

Trying to sell it right now. I'm about to put an offer in on another house with a long closing window, hoping this one sells first. If it doesn't sell, I need to be able to rent it.

I can cover 20% down without selling this house, but my mortgage would be higher than I'm really comfortable with. so, my plan is to buy new house with a 5 year arm (~2.75%), rent my current house for 4 years or so, sell it before the rate adjusts, and use equity to get in on a 10 or 15 year fixed. My ultimate goal is to be mortgage free around the time my kids are out of school (13 years from now) so I can start thinking about pre-retirement.

Again, I would prefer to sell my current house, but I'm trying to determine if I'm comfortable renting it which would allow me to buy before I sell.

also, $2k+ is probably doable. I've never watched the rental market though so I can't be sure what the market will bear. Trying to be conservative in my estimates to make sure I'm not going to put myself into a giant hole.

Is there a reason its not selling? How long has it been on the market?

Are there others in your neighborhood that are rentals? The housing market has rebounded really well and its a sellers market nearly everywhere. That said, I understand RE is local, but if you're in an area that hasn't rebounded, you may want to find out why. Might not be a good place to be invested in for 4+ years.

His market hasn't rebounded because it never really crashed that hard. He's in a good market long term.

 

[BassNBrew]

so trying to calculate my costs vs rent, to make sure I will be good:

house is 6 years old, not anticipating any major issues (although appliances are GE and therefore crap)

estimated P&I, taxes, insurance: $1150 (accounts for non-owner-occupied taxes)

yard maintenance: $60 (want to make sure yard is well kept, don't want nastygrams from HOA)

HOA: $52

termite spray: $20 (applied once, yearly)

fertilizer: $60 (keep yard nice and green)

----------------

total monthly expenses: $1353

Assume rent = $1700 (probably could support up to $2k, I'm being conservative here)

mgt fee: 10%=$170

that leaves me with $176/month as cushion for any repairs, etc that need to be made...roughly 10%. Would you guys be comfortable with this cushion?

What other expenses do I need to be aware of?

Mgmt company will probably charge 1/2 of the first month's rent.

I'd cut out the grass service. 95% of the tenants can handle this w/o issue. If they don't you can send the notice that they are in breach of their lease and if it happens again you'll be sending some to cut the grass and charging them.

Keep in mind that you'll be force to depreciate the property at roughly 10k a year. That will reduce you cost basis by $40k if you sell 4 years form now. There use to be an IRS reg that you had to live the home 2 of the last 5 years to avoid the capital gains hit. Not sure if that is still the case.

 

[KGB]

Kicked tenant out for non payment.

Will be spending all weekend cleaning, rug doc, etc. Happy fathers day! :downside:

 

[KGB]

I actually had to swiffer (wet) the walls.

Some rooms it was just easier to repaint. :(

 

[glumpy]

First time landlord, soon as I finish building. Family friends. Big extended family. They will be in the oversized 'MIL' house on our property. Oh man I'm exhausted and I do understand this is just the beginning.

lessee...

Lease agreement--any good generic ones?

Tenant insurance--saw that reference skimming through, TX BnB

Swimming pool *sigh* there is one on the property so it's time to set ground rules.