All Forum Posts by: Corby Goade

Don't assume that a conventional lender wouldn't be interested in you. You have W2 income, and that is HUGE for buy and hold, Especially where you are at in your career- you'll need that income to prove to banks that you are a risk worth taking. Ask some of your colleagues here on BP what local banks are investor friendly and apply for a mortgage. If your credit is decent, I think you are in for a pleasant surprise. 

By the way, I am pretty small time compared to many on BP, but so far, all of my properties are conventional loans and I have a very small W2 income, but it has been vital to my growth. Once you've been a landlord for awhile (I think two years, but don't quote me) your bank will start letting you count 75% of your rental income towards your debt to income ratio, which will help even more. Go get those cheap conventional loans while you can!

I've used Allure vinyl planks on our last three projects and could not be happier. Inexpensive, super durable, easy to install and it floats. Scuff, hole or tear, you just replace a plank. It takes two minutes. To top it off, the stuff looks great. Can't say enough good things about it. 

Hey @Craig S.- I wouldn't screen the 18 y/o as I would the parents. He isn't responsible for paying any of the rent (presumably) so I wouldn't hold him to those same standards. I'd ask him to fill out the same application that the parents did and list him as an adult on the lease. If nothing else, you have his info if you need it and could be a good reference for him when he wants to rent his own place.

I don't have any properties with attics, so I can't really speak to that. 

However, I've found it to be a mistake to provide any type of "bonus" appliances (other than fridge, stove, dishwasher, water heater.) You'll be on the hook for maintentance, repair and replacement. In my area, I don't think any tenants would think that having a filter or softening system would be of benefit to them, so it wouldn't be a deal breaker if one were not provided. 

Great questions!

1) Spouse not on lease: For us, any applicant who tries to negotiate any changes to the lease or rent is no longer in the running as a tenant. This would only be the beginning of this tenant taking advantage of you. Next, they'll paint the house without your permission, and demand that you pay them for the paint. They'll have one of his buddies living in the garage because you don't require that everyone is on the lease. What if the wife damages the property and refuses to pay the damages? You would have no recourse because you have no contract with her. Run from this applicant. Fast. 

2) Children on lease: Our lease requires that they list the minors living in the house. You need record of that only so they don't take in their cousin's daughter. Then their niece. Then their neice's friend who's parents are mean to her. Etc- next thing you know, your two bedroom apartment has eight kids living there, writing on your walls and dropping cheerios down the vents. Yes- if the "kid" is 18, he's on the lease. He's a legal adult and living in your property, for which you are liable. Protect yourself at every turn. 

3) Income requirement: I'm actually much more flexible on this one. If the income is close, but I get really good vibes from the tenant, they have good credit and good references, I am okay with that. I put a lot of stock in their references, especially from previous landlords. I woudln't ask for tax returns, just make sure you have a very thorough application so that you have all of the info you need if things go south. 

Good luck out there!

Wow, great advice on this thread- I've learned a thing or two. @Mike H., thank you for taking the time to write all of that out, very helpful. @Amy Zemser, I'm not a big fan of wholesaling (or flipping) for the same reason- it's not an an investment strategy, it's a job. A hard, stressful job- no equity, no dividens far fewer tax benefits. Finding great deals really is the hard part, and if you love being a landlord, why not reap the benefits of THAT work forever? 

I've used my HELOC to buy a couple properties, but the strategy that is detailed above is a potential game changer. Just have to find those deals. Best of luck!

Sounds like you have a lot of thinking to do. The best advice I can give you is to invest in yourself before you jump in to anything. Yes, it takes a lot of training, time and hard work to become a licensed tradesperson, but people do that because there is value in that hard work. I don't know anything about elevator repair, but nurses must have bachelor's degrees and licenses. If you are avoiding those options because of the level of committment required, I would definitely not try to invest in real estate. It's not easy and it's definitely not a way to earn a quick buck. It's earning a very slow buck, actually. My advice would be to get a decent paying job and either go to school or start an apprenticeship. 

We have just started exploring investing in a few different cities in the midwest. Do you have buy and hold investments in any of the following metro areas?

-Kansas City

-Milwaukee

-Dayton, OH

-Macon, GA

What struggles do you have related to the market in that area? What is your vacancy rate? What is the quality of your tenants? What drives the economy in that area? What are rents like, relative to market value of your property? Are there neighborhoods that should be avoided altogether? Why?

I know there are many questions here, so don't feel obligated to answer everything. I am just trying to get the real feel for each market. If you invest in a different midwest market and are having a good experienece, please share! Thanks in advance. 

Dave is great for personal finance, being debt free personally will give you a great leg up when starting your business. And of course owning a property free and clear is the best way to go, but not many people and do that, and leverage really is the name of the game. Dave is always preaching about how great real estate is, but he says you should save and buy it free and clear. In my area, a basic 3/2 SFR would cost me almost four year's salary at my day job. It's just not realistic for me. Leverage and let other people pay your mortgage.

I had a floor that looked exactly like this- no asbestos though. I rented a floor buffer from home depot, along a with carbide tipped blade attachment. The glue and residue was gone in about an hour. I prepped the surface- you might need some concrete leveler, bought a gallon of concrete stain and wet-look concrete sealer. In a day, and for about $125, we had a fantastic and unique floor. With asbestos, you'd want to get a propertly trained and insured crew in there to clean up the glue for you. But heck, even if you don't like the final product, your only out a few bucks and you can still lay the plank vinyl. 

By the way, I've used the plank vinyl on a few jobs this spring. It's awesome too. Inexpensive, looks great, fast and easy to install and durable.