All Forum Posts by: Brianna H.

Great idea, Curtis! I have never seen this analysis calculator before, so I am glad you pointed it out! Of course it gave me a better ROI than I estimated (18%), but I am glad that I am in the same ballpark! I am excited to look at this report in a year! Thanks so much!

Does anyone have any advice on what my next step should be? I just bought my first rental house and I am addicted now. Here are my stats:

Primary House: $610/ (mortgage) + $385/ (taxes/insurance)

-Home Value: $160k, Balance: $65k

-15 yr loan, 2.9%

Rental House: $400/ (mortgage) + $350/ (taxes/insurance) <- no escrow

-Home Value: $130k, Balance: $75k

-30 yr loan, 4.5%

-Rent: $1500/ (have only received 1 months rent so far)

My husband and I bring home $6750/ and have excellent credit. How should we approach buying our next house? I haven't actually talked to a mortgage lender, but the estimates for how much I can borrow on the internet range from $81k-$240k. Are taxes/insurance counted against you when applying for a loan? Do banks include rent profit less than 2 years? I would like to close on another house within a year. Thanks!

I just got my first investment property rented. Here are the stats:

Purchase price: $86.5k

Renovation: $15k (wrapped into loan)

Appraisal: $125k

Cash Invested Before Renting: $33k

Rent: $1500

Mortgage Payment: $400

Management: $125

Repairs: $60

Vacancy Allowance: $125

Insurance: $100

Taxes: $250

Realtor's Listing Fee: $125

Monthly Profit: $315

Expected ROI: 11.5% + Principal Paydown

What do y'all think of my expected ROI? Are my estimates for costs appropriate? I do not have a management company, but include that just in case I chose to go that route. I include 1 months vacancy/year to allow for the unexpected. I am trying to keep my figures conservative.

Thanks for all your responses! This has really helped! I think I will require a co-signer for both applicants OR double the security deposit.

I was almost kicked out of college for lack of payment because I couldn't get a co-signer for a loan...I have always been the most financial responsible person in my family, but sometimes you just can't get someone to co-sign no matter how responsible you are. 

I spoke with both of the applicant's moms. App 1 Mom said she would gladly co-sign. App 2 Mom said she would have to ask her husband, so we will see what happens! :-)

Purchase Price: $86.5k

Renovations: $15k (included in loan)

Total Investment: $31k cash (loan balance of $75k)

Sell Price: Homes in neighborhood are on market/pending for $0.85/sqft, so we listed the house for the same price. ($150k). The appraisal (considering updates, but before they were done) came back at $125k so I am not confident that we could actually get the house to appraise for this high unless the market has gone up in 3 months (inventory is low in the area). 

Rent Price: $1500/mo 

Taxes:  $3000/yr

Insurance: $1100/yr

Including vacancy, management fee, realtor's fee, etc I am assuming I will make a profit of $350/mo. 

What is the best deal? Our long term goal is to buy and hold, but the cash out upfront could afford us the ability to buy two properties. What are the tax implications of both options? 

 Ariel, they didn't list the parents as references...they listed the parents as an emergency contact and put the parents' address as their current address. I figured with my first time as an investor, I want to check every source they provide...especially since they don't have any rental history.

The rent is $1500/mo. Co-applicant 1 makes $2000/mo with consistent overtime on top of that. Co-applicant 2 makes $4750/mo. So total, they make $6750, which is 4.5x rent (meets my criteria for 3x rent). 

Co-app 1 has 800 credit score...no outstanding debts other than minimal credit card debt. Co-app 2 has 600 credit score....$400 car payment, no credit card debt. Had some issues 2 years ago, but collections have $0 balance. 

What are your thoughts?

 Great advice Nancy!! I will definitely ask them if they are willing and able to co-sign! 

 Thanks for your response, Edward. I have verified that their state ID matches the address in the credit check (no other addresses listed). I also verified with the tax appraisal district that the addresses listed are owned by the parents (or at least someone with the same last name). 

So if they have lived with there parents, they obviously don't have any prior history or evictions. I have a few questions that I want to ask the parents, but what is your advice?

-where does applicant currently live?

-how long has applicant lived at your house uninterrupted? Where did they live before that?

-does applicant have any financial obligations? House payment, car payment, child support, etc

-why is applicant looking to move?

-is applicant financial responsible?

I figured I could get the most juice out of a parent, especially without any rental history. What do you think?

Howdy!

My husband and I just bought our first investment property! We received our first applications for the rental, two friends in their mid-twenties. They are both living at home with their parents currently. Do I call their parents as a reference? If so, what questions do I ask?

I will also be calling their employers tomorrow. Please give me any advice you have. I know about the typical questions (are they currently employed there, can you verify income, how long have they worked there). Is there anything I am legally not allowed to ask?

Thank you in advance!

Howdy!

My husband and I just bought our first investment property! We received our first applications for the rental, two friends in their mid-twenties. They are both living at home with their parents currently. Do I call their parents as a reference? If so, what questions do I ask? 

I will also be calling their employers tomorrow. Please give me any advice you have. I know about the typical questions (are they currently employed there, can you verify income, how long have they worked there). Is there anything I am legally not allowed to ask? 

Thank you in advance!