All Forum Posts by: Corby Goade

Hi @Mohammed Adam- Sure, I'd be interested. What can you tell me about the market? What's your role- are you a wholesaler, flipper, agent? I can't quite tell from your profile. Thanks for reaching out, much appreciated!

@Bryan N.

- I've only used the glue strip type.

Fining her won't get the smoke smell and damage out of the apartment- it will be very costly in time and money to do that. I think you are spinning your wheels considering a $50. That being said, you have a heart and it's clouding your judgement. I have the same problem, so I get it and appreciate that you have concern for your tenant. However- the smoke isn't just bothering you, it's bothering your other tenants (even if they haven't told you). You could be in trouble with them if your building was rented to them under the agreement that it is a smoke free property- obviously it is not. 

Being a softie too, here is what I would suggest: have a heart to heart with your tenant. Tell her that the smoking is a deal breaker and you don't want HER to put you in a position where she must be evicted. Make it clear that she has the power in the situation, all you are doing is enforcing the lease that she has already agreed to. Talk to her family and let them know the situation- they may be able to encourage her. 

If she refuses to stop smoking in your property, I would call the local housing authority and find a nearby property that does allow smoking. Help her apply and get a new apartment over there. You will need thousands of dollars to slightly conceal the smoke smell. Seriously, when someone smokes in an apartment you may need to replace EVERYTHING. There are lots of estimates out there: 

http://www.mnsmokefreehousing.org/documents/Restor...

If it motivates you at all- 20% of lung cancer diagnosis are to non-smokers who are exposed to second hand smoke at home or at work. Evicting her or getting her to quit will protect the health of yourself, your wife and your other tenants. 

Finally- most states have free smoking cessation benefits throught their health departments. Anything from free classess and couselling to free patches. If she wants to quit, you could get her some info on the benefits available. 

I would keep looking too. Just got rid of some problem tenants myself and someone recently said to me- "no tenant is FAR superior to a bad tenant." Truer words were never spoken. You'll get more, better applicants and it will pay off. Taking a chance on someone can be very, very expensive. Be patient. 

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!