All Forum Posts by: Ashley Russell

We recently held an open house for one of our SFH rentals and received 4 applications within hours of each other. We had great first impressions of all 4 sets of applicants. As I wait for my third party to complete the screenings, I am thinking ahead to how I will make my selection. We are screening for criminal record, eviction history, rental history/previous landlord references, and reviewing credit and employment history. Is there one criteria that I should weigh more heavily than another? Our last tenant lost his job, up and moved back to his hometown and broke his lease. We spent over his security deposit making repairs and cleaning up. Needless to say, I am most focused on finding a tenant that will stay for the duration of their lease at a minimum and take care of the house like its their own. But these things are hard to screen for. Do I favor someone who has roots in the area (i.e., has lived locally longer) or who has more than one positive former landlord reference over someone who has a higher credit score or a perfectly clean record? This home is also in a B-/C+ neighborhood so I don't want to get someone in who is going to have second thoughts about the neighborhood and want to break their lease. This is why I tend to favor those applicants who have already been living in the area vs. someone coming from out of town or across town. Any insight is much appreciated!

@Alexander Flores it appraised for $145k. We've done a HELOC before and I may go that route this time too.

@Jason DiClemente we put 20% down when we bought it for $95k so our loan balance is about $75k. That’s how we could pull out the difference.

We are trying to do our first BRRR. We bought a SFH for 95k, put about 45k into it and it just appraised for $145k. The lender we are working with is estimating about $6k in closing costs so we would only get about $24,000 back. We already paid $575 for the appraisal. Is it worth paying $6k in closing to get out $24k. Should I try another lender (paying another appraisal) to see if I can get a higher appraisal and closing costs down? The only thing about the BRRR strategy that bothers me is having to pay closing costs twice. But is it worth it to free up more cash for the next property?

We are trying to do our first BRRR. We bought a SFH for 95k, put about 45k into it and it just appraised for $145k. The lender we are working with is estimating about $6k in closing costs so we would only get about $24,000 back. We already paid $575 for the appraisal. Is it worth paying $6k in closing to get out $24k. Should I try another lender (paying another appraisal) to see if I can get a higher appraisal and closing costs down? The only thing about the BRRR strategy that bothers me is having to pay closing costs twice. But is it worth it to free up more cash for the next property?

Jeff - we did have to bring a GC on since it’s a condo and not owner occupied. They have listed why they’re denying this time in about 5 bullet points such as windows not compliant with code XYZ. Outlets not in compliance with ABC. My GC is having to go back up there Monday to try to get an explanation. They refuse to talk to me or my husband and only want to talk to the GC. They are less than friendly to say the least. Since this is our first experience with permitting, I’m curious if all building departments are difficult to work with. 

We are renovating a condo in one of the Pinellas beaches. Our permitting app has been denied twice. They seem to be purposely making it difficult for us. Could it be that it’s because the local government is anti short term rentals and this is there attempt to hinder us? Has anyone else ran into this challenge?

My husband is considering partnering with a local investor on fix and flips where this investor would put up 100% of the purchase price and renovation costs. My husband would act as GC and do all the work, manage subs, budget etc. They would then split the profit 50/50. Should my husband also negotiate being paid for his time or for a draw that would be taken out of the profits? He would be foregoing a salaried position with an established builder. We understand that the investor is taking on the risk by putting up all the money. But if for any reason the flip doesn’t make money, my husband would be essentially working for nothing. What has worked for you all? And what would be fair and win/win for both parties?

Anyone else being targeted by the Pinellas County tax office over this 6% tourist development tax which is on top of the 7% sales tax?

Yes I meant to say 12 months, thank you! We would be doing a full cash transaction so there would be no bank or mortgage at closing. Does this make a difference in how they send the wire? What legal docs do you recommend or where do you recommend I go for a contract of this type?