Greetings and beginner question

[Carlos Appezatto]

Hello BPs. I'm really new to BP and real estate investment. I just bought my first rental property after doing a lot of reading and research. While I'm still not 100% sure we have made the right move in terms of numbers, I'm pretty confident we are in the right track based on what we have taken into consideration Vs what we've been reading.

Now back to my question, our first rental is been on the market for a little over 2 weeks and after reducing the price a little we got a better response from potential renters. The problem is that they are coming with a few "buts". The first has a low credit history (in the 600 neighborhood) the second had a previous eviction and the third had a bankruptcy. We do have a real estate agent assisting us in finding renters and with the showings, however, I'm not really sure we should have a first "bad start"

Should we minimize the risk of the "buts" by requesting a higher upfront deposit (e.g.: 3 rents in advance)? Any other/different recommendation?

Thanks in advance,

Carlos Appezatto

[Fernando E.]

Hi Carlos Appezatto , congrats on the new investment property. I just had ours closed and in process of being rented out in Elk Grove, ca. It seems that you are planning to do the screening of your renters by yourself which can be tricky so I recommend reading the book on rental property by Brandon Turner, link below for Amazon and it can also be purchased in the BP site

The Book on Rental Property Investing: How to Create Wealth and Passive Income Throu... https://www.amazon.com/dp/099071179X/ref=cm_sw_r_sms_c_api_SwdXybQ3AKCXC

I have a PM that handles my screening but I have made sure that their standards for a renter is at par or better than mine. Definitely no evictions, ability to provide proof of income 3x the rent, 600+ score, as few items to check. It makes sense for us to be selective as we spend a lot of our hard earn money on our properties. So in my simple REI mind, unless your potential renters meet your standards, it's a NO! I'm sure more experienced members of BP can chime in as well. Good luck and keep hustling for success!