All Forum Posts by: Keith N.

No

You should replace the entire fence, kill the weeds in the driveway, and hire a professional photographer to take photos of the home

Quote from @Chris Mason:

@Wayne Brooks and @Basit Siddiqi are 100% correct.

Depreciate everything as much as your tax pro says is lawful. Reduces your tax burden, doesn't hurt your ability to get mortgages, what's not to love? If you were looking into ways to save on taxes other than depreciation, most of those things DO screw with your ability to get a mortgage.... so getting you focused on depreciation is great for me since it means I'll be able to do a mortgage for you in 18 months when you're in the market. :P (I'm actually California only, but the joke stands.)

This is still true in 2022/2023, correct? Any depreciation (be it bonus depreciation, or other) is seen as a "paper expense" and not calculated as hurting one's DTI when seeking a conventional mortgage loan as an individual?

Quote from @Stephen Daniel Pace:

Its definitely possible just have to continuously look for the right property/area and be patient. I recently purchased a single family home in the Jersey Village area that I found on the MLS that was pretty much turnkey - it only needed cosmetic repairs. It took about 4 months to find it as my search criteria was pretty strict, but it needed to be since it was my first property and I wanted make sure I eliminate as many potential issues before purchasing as possible. I only cashflow about $150 but that will increase when/if interest rates improve. Continue to be patient, network, use a realtor if you can (mine is amazing), and learn as much as you can. You'll find something!

What was your purchase price, and what is it now rented for (or projected rent)?

I’m curious because it is nearly impossible to find cash flowing single families in my city as well. 

Quote from @Nathan Gesner:

Quote from @Keith N.:

I listed a home for rent in November and received unusually low interest. Once I showed the property to the only seemingly qualified applicant, I offered December rent free. Then I got a 14-month lease signed so that the lease wouldn't end around the Holiday's again. Also, NEVER lower your tenant criteria because you're desperate a home isn't renting.

I agree. Lower your price, not your standards.

Did you consider a shorter-term lease? I prefer month-to-month or a six-month lease, with the understanding they have to sign a one-year lease in the spring.

I definitely understand that a longer term lease favors the tenant more than the landlord. However, I don’t want to go through the hassle of potentially having to screen and re-rent only a few short months later.

I make sure I have a really good feeling about someone when signing a longer lease (and also do background/credit check & online research of the tenant on LinkedIn/Facebook, etc.)… that way I’m confident I won’t be stuck with a headache tenant.

I listed a home for rent in November and received unusually low interest. Once I showed the property to the only seemingly qualified applicant, I offered December rent free. Then I got a 14-month lease signed so that the lease wouldn't end around the Holiday's again. Also, NEVER lower your tenant criteria because you're desperate a home isn't renting.

I didn't even look at your listing. However, I recently had to re-rent 3 units in the Raleigh area, which is usually EXTREMELY easy to find qualified tenants.

The two which I rented in September and October were super easy and rented to great tenants within a week.

For my unit that became available in November, there were barely any people at all responding to my ads even though it was an identical unit at a slightly lower price. I ended up renting it to a great tenant as well, however there was literally only 1 qualified tenant that responded to me in a 2 week period.

I think in November and December you can expect a lower rent price and less people interested due to the holidays.

Quote from @Ruben A Ventocilla:

That is a good point Collin / Nathan. Please see my posting below:

https://www.zillow.com/homedet... 

Really appreciate any suggestions

You definitely need to mow and manicure the lawn. Your pictures aren't terrible, but I've found that paying a real estate photo company $175 to take "enhanced"/edited photos makes my pics look significantly better than most other listings.

But also you are likely priced high.

Quote from @Matt Cartwright:

@Keith N. That's a pretty competitive offer at 7.625% so when you say points how much are they charging?

Our DSCR stuff right now on a 10/1 comes out to 7.50% for a strong borrower.

20% down = 3.175 points
25% down = 1.375 points

I'm looking for any recommended lenders, credit unions, etc that offer favorable 10 year ARM mortgages on single family or small multi-family investment properties. I'm currently getting quoted about 7.625% + points for 30-year fixed loans.

If I could find a lender offering a 10/1 or 10/6 ARM mortgage (30 year amortization) significantly lower (in low 6's), I would prefer that.