All Forum Posts by: Alan Pederson

My plumber and AC contractor hires guys that drop out of school or have criminal records to do the manual labor while they rake in the cash. How are you going to pay for the properties you want to buy? By being the helper or by being the contractor?

I hated high school. I did just enough to get by. It wasn't that I was stupid, I just didn't see the need for the stuff they were teaching. I wish I would have paid more attention and went to college so I would have had things easier.

There's no reason why you can't work for someone on the weekends so you can learn the skills you will need when buying houses. Carpentry, plumbing, electrical, HVAC, sheetrock and texturing, or handyman skills. You'll make some money and learn some valuable skills.

If your thinking about buying something in a flood plain, I know some great deals you can get in Oklahoma and Arkansas right now.

I look for tenants that make 3 to 3 1/2 times the rent, steady employment for the past 2 years, and no judgements or evictions. Most people have car payments and a low credit score doesn't scare me. I would be more concerned about their income to rent ratio.

Applicant C

I wouldn't buy any house in a flood plain

I would be curious to know how big of an operation he does out of his house? Is it small for just personal consumption or would it take up most of the garage?

I'm not sure about your situation but when we go to qualify for a loan, we show what the rent and house payment amounts are for the rentals we have. This shows the lender what our debt to income ratio is. I don't see how a lender can hold you responsible for a tenant that isn't yours. I would tell the lender what you plan to charge for rent and you might even provide some info about what rents go for in that area so they can see you're not just making up numbers.

You could put that in your lease but a dishwasher doesn't cost that much. Maybe $300. You don't have to provide a dishwasher or repair one that breaks but most people do. People can still wash dishes by hand. I've had a repair guy come out to one house twice in 2 years for the dishwasher. I have a home warranty so it only cost me $65 to get it fixed. If I didn't have the warranty, I would have just replaced it. The one that's in there is at least 10-15 years old.

Getting someone to repair a dishwasher is going to cost you at least $100 just for them to come out + parts. A new one is around $300. Just easier and cheaper to just replace in most cases.

I created an excel file that I use to track all of the payments I receive and expenses I incur. I have two that pay me with money orders and one that pays online. As soon as I receive a payment, I go to my excel file and document it. It has worked pretty good for the past 4 years and my accountant loves how organized things are when it comes to tax time.