All Forum Posts by: Bradley Padula

I get this every now and then with people looking to move from out of state. No new job lined up equals no income. How do they think they'll pay rent? Under my criteria an applicant much have a certain level of income to qualify for one of my units, so a tenant with no income would not qualify. When this applicant moves from their current location, their then current job will be a past job. That's how I looks at these situations

Say this candidate suddenly did say they had a job lined up, that is where your due diligence comes in. I'd ask for their offer letter from the company, contact the company directly on their number you find online versus the number the candidate provides (is the number they gave their friends number, etc) and vetting that the offer is legitimate with human resources, is the start date on the provided offer letter match what the company says, is the pay rate accurate etc

@Dalyn Hazell internet/cable is generally left to the tenant (along with all other utilities for my properties). The most I'll get asked about cable is new tenants asking which service provider the prior tenants have had. Save yourself the headache and let them handle their own internet/cable stuff 

A 3 year old roof that looks bad? Pics?

From an ARV standpoint, Appraisers will rate the roof on a useful remaining life standpoint and condition standpoint, not on an aesthetic basis. I don't think you'll get any value bump out of replacing a roof under 3 years old with a new roof. I'd be more worried about what local comps the appraiser is going to pull from nearby sales which is really what drives the ultimate appraised value versus replacing such a young roof that (hopefully) has another 20-25+ years left in it

I've seen people have roof washing companies come out and work wonders on older roofs. They use a low pressure water stream and special cleaning solution. Be wary of an inexperienced company who's going to just get up on the roof and blast if with high PSI water, you could end up with roof leaks and more problems than when you started. This is something I'd want to see prior homes they've done before and after pics and look for good reviews online
 

Have a process in place and written criteria when screening tenants. Stand by your lease. Review lease with tenants at lease signing. Review comparable market rents and price accordingly for your unit and what it offers. Price to high, minimal bites. Price too low, everyone comes out of the woodwork to apply.

Hey @Steele Evans, It depends. You should look at comparable rentals in your area and see what they're renting for with and without central A/C and that should help you get a sense.

Also you should calculate how long it will take for you to get a return on your investment and if you want to wait that long to be able to recoup your initial investment. Say it costs $5,000 and you get the extra $100 per month, the payback period is 4 years. Say it costs the $5000 and you get no increase in rent, then what? Plus there is another item that will wear out over time and need to be serviced. However, it could increase your property value by adding it but you would have to check comps in your area. Pro's and con's

@Jeffrey Allen Hey Jeffrey, there's some info online but ultimately you should talk to a few lenders who are familiar with the program's aspects. If you poke around the masshousing website there is some information. The income limit varies by zip code.  Here is the link from masshousing website. Usually these loans are based on gross income but I'm not a lender and you should consult one. 

https://www.masshousing.com/en/home-ownership/homebuyers/income-limits

@Alan Van Gorder Hey Alan, I'm in the lower mills area of Dorchester, would be great to meet up. Please let me know if the meetup is a go. Thanks!

@Bryan Ralphs congrats on the purchase! I've househacked myself and its a great strategy.

I agree with David, and would just be straight up with the tenants. 

All it takes in them to do one quick check in your local county assessment/real estate database and they can easily find out if you're the owner. Then if you're saying the whole time you're not the owner etc and they find out, it makes you look very shady to them. 

Also when you fill out the lease, in Mass at least, there is a section landlord name and a section for tenant name. It's pretty obvious who is the landlord is. I don't see a downside to them knowing. The only thing that might happen is they treat the property better because they know they're living with the owner, and they know that repairs will get done in a timely manner since you're living right alongside them, win-win

In regards to the LLC question, I'd look around more on BP forums and also ask a local attorney. In Mass, LLC information is public so they could look up the LLC to find the owner and it ultimately comes back to your name. And if the LLC were to rent the property to the tenants, wouldn't an authorized individual from the LLC have to sign for the LLC? And that would be you, so it would be obvious.

@Frank Rubino great story and solid buy and hold. I'm sure your unit will sell quickly! I'm nearby in the lower mills area of Dorchester. 

I took a look at the listing on redfin. The bedroom pic is blury, and the some other pictures are grainy / low resolution and there are two of the same picture of the bathroom. Just a heads up in case your listing agent can make some adjustments to best reflect your property as people are viewing the online pics. If you're close to being under contract or are under contract, disregard this haha

Once the world returns to a bit more normal, would be great to meet up and grab a coffee or drink in the city if you're still living locally!