All Forum Posts by: Andrea Kraft

 Thank you so much for this helpful information :)

Hey Brandon, One more question...In this situation would you have both parties complete a background check? Even though I am leaning towards one over the other... or would you send to the more desirable tenant first and go from there? I feel odd having them both spend money and time to complete a background check if of course I can only pick one. Thanks again for the help!!

Hi Brandon! Thank you so much for this information - Very helpful!!

I have a couple questions about choosing a tenant...

1) When using a company like Rentprep.com do you send everyone a link for a background/credit check -or- do you have them fill out an application 1st and determine from there who to have complete a background screening?

2) Once the background checks come back...Let's say they are all good. Can you deny someone if you feel another will just be a better fit? What if you don't have a specific reason?  For example, I have one tenant who is building and will for sure move out in a year and I have another who have always rented and I feel like they might stick around a bit longer...Can I deny the others just because I "think" the others will be longer term??

Thank you!!

Thanks for the input John!

Thank you Sud S. I needed to make sure I was thinking about this correctly :) We decided the only way it would work would be if we kept the property long term. It would take about 6 years to pay off the down payment. Offered $305,000 and to rent it for $2,500 for 2 years+ no buy back option. - On to the next ;)

Someone recently reached out to me with a potential opportunity. This person is going through a divorce and has to sell their home, they have kids and want to stay in the property if possible. They are wondering if I would buy it from them, rent it to them for 2 years and sell it back for the same amount purchased. They would pay $2,500/mo in rent for the 2 years.

Market value is around $375,000

Would purchase for $325,000 - Would have to finance with 20% down...

Rent for $2,500

Has anyone else done a deal like this? How did it work out for you? Thanks!

I would love to hear what some of your favorite or go to products are for a rental property...Specifically would love to know the following...   -Thank You!

Toilets (I don't want to deal with crummy ones)

Flooring

Windows

Counters

Appliances

Thank you! We are excited to jump in! Once renovations are complete this home would sell and should appraise right around $325,000. We are thinking it will rent right around $2200. 

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $160,000
Cash invested: $60,000

4 Bed 2 Bath split entry single fam home with detached 2 car garage

What made you interested in investing in this type of deal?

Was actively searching for our first rental property. Rental rates are good in our area and we like the idea of having some long term investments.

This one is perfect for the BRRRR method and plan to do a cash out refi to roll into our next property

How did you find this deal and how did you negotiate it?

Very familiar with the neighborhood, we saw a dumpster out front and some not so familiar faces and decided to stop and chat. That initial visit turned into a tour of the home and we wrote them an offer the next day. I am a realtor and was able to facilitate the deal. In this situation we needed to prove to the county that the home was worth less than tax value so I walked the home with an appraiser, was able to show how much work needed to be done, provided documentation from my contractor.

How did you finance this deal?

Cash out refi on our primary residence and purchased cash

How did you add value to the deal?

Just knowing the market, being helpful and friendly to the family selling and being able to coordinate the appraisal , title work and provide documentation to the seller and county.

What was the outcome?

This is our 1st and we close tomorrow! Hoping for a great outcome. We made sure the numbers work even in the worst case scenario, i am confident this will be a successful investment.

Lessons learned? Challenges?

Siding has gotten SO expensive. Trying to determine what the best materials are for a rental property. Wanting it to look nice but keeping everything in perspective that I will not be the one living in the home and shouldn't dump too much into it :)

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Russ Lis - Association Reconstruction (Roofing, Siding WONDERFUL contractor)
Tom Robison - Insight Loans (Cash out refi)
Nancy Lenzen - Trademark Title

-All exceptional professionals who I have used for myself and my clients!