Screening Applicants - Out of State, Bankruptcy and Forclosure

[Justin R.]

Hello Everyone,

I just recently came across this great site. I'm very green regarding real estate investing as this is my first property and going through the screening process. I was hoping to get some recommendations from the knowledgeable investors on this site. Here is my situation, I have 3 people interested in my 1 bedroom unit in a lower income area.

First person is in their mid-50's, currently in the process of Chapter 7 Bankruptcy (filed August 2013 and will be closed November 2013).

Second people are a married couple mid-20's from Northern Michigan and are relocating to the area do to husbands work related training. He works for his fathers company as an online dispatcher and will continue to work while relocated. They will NOT be making a trip prior to moving and plan to select a place by online browsing only.

Third person is an their late-50's and currently going through foreclosure. They have lived at the house they are losing to foreclosure for 14 years.

I'm interested in what other investors selection criteria is. Do you allow bankruptcies and foreclosures? How do you handle out of state applicants who are not planning to view the property and allow you to meet them in person prior to moving? Any recommendations/suggestions would be greatly appreciated.

[Aaron Yates]

@Justin R. , Welcome to BP and congrats on your first property. You have taken the step that most don't and jumped right in with your first property.

We all have different things that work for us in our market. I personally am a little more leniant than any of my associates because I personally have gone through bankruptcy, tax foreclosure, being broke, and struggling for many years in my early and mid 20's.

Here is a link to one of my blogs and my screening process. I hope it helps.

http://www.biggerpockets.com/blogs/4178/blog_posts/30113-how-to-qualify-as-a-landlord

Good luck and congrats again.