Playing with risk factors

[Shawn Coverdell]

Most of my properties are in the hood. I us a PM with fairly strict standards. I get good tenants  high turn around. I am finding that good people do not appreciate toothless meth addicts as neighbors. with good credit and income, they find a better place and move on.... Our houses are all fully remodeled and very well kept. A friend of mine invests in same area. He spends less than half the time remodeling and his vacancies are about a week as opposed to mine that sit for a month or more due to picky selection. His tenants look like they fell off a Harley and rolled into a ditch. Most have felonies and credit scores in the 500's, they shop Aaron's and drink energy drinks daily then go to food banks for help.ar

His places are only empty for a few weeks when vacant. He takes larger deposits for the risk. He tells them he is charging them higher rent for the risk. His tennents tend to stay forever because no one else will rent to them. 

Yes, they stink and are straight up nasty. But if you only spend 500 bucks and 3 days turning your units, you are doing pretty good right?

so I  a bought a home that would normally rent for 800. spent 14 days remodeling it. The tenants  were moving in as we were packing up our tools. I was kind of embarrassed on the job we did, but the tennents loved it. Both had felonies and had a pit bull. 

I charged them 1K rent. that is 200 more than normal. and double normal deposits. They are so happy to have a second chance they pay there rent 2 weeks early and they seem like very nice people. 

So I figured hey, maybe this is beginners luck. so we bought another one and did the same. 

Wow. working great. 

so here is the question, This is Washington State. so we are now advertising another one on Facebook. if they ask how much can we tell them it depends on your risk factors. Go down a list of questions. if they pass the gut test ( you landlords know what I mean) tell them the rent amount. Tell them to apply through our PM. Our PM is willing to go over them with us. 

Is this wrong? will I go to landlord prison?

Shawn Coverdell

Homes in the Hood