All Forum Posts by: Chad Bailey

Do not get the typical kwikset because then with the simple kwikset tool your tenant could lock you out of your own house.  Instead be sure you get the one with smart key so you have essentially a "master key".

K

wikset 98160-009 816 Key Control Single Cylinder Deadbolt featuring SmartKey in Satin Nickel https://a.co/d/8xkWPu4

 How are you looking for deals?

Hello,

I currently own a SFH LTR in the Katy, TX area and the home is owned outright. I'm looking to expand and buy other LTR SFHs and am curious if anyone has experience pulling a HELOC to use as "Cash" to competitively purchase their next deal then refinancing our into a conventional mortgage. I've met with one local credit union thus far (TDECU) and they said outright they don't do HELOCs. So I'm just curious if anyone has used this strategy and if you have any comments. What banks have you used to get HELOC's is it advantageous? Any other recommendations?

Thanks!

Chad B.

Hey All!

We currently have a set of great tenants in our rental house which have been renting for the past 8 months. They have great credit, always pay on time and in full, and require very little from us as landlords to maintain the property. 

Their lease ends June 30th, and they are requesting to go month to month until November 1st, as his job may or may not require him to be in Houston past November. This would potentially put us leasing the property in the winter which is less than ideal, however, we also have concerns about showing the property and re-renting with the current coronavirus and are we are welcoming a new kiddo to the family in late June as well (lots going on!!). 

We see three options but would like input on what you might do in the situation. Current rent is $1650/mo. Property is probably a Class B SFR.

1. They renew for a full year at a slightly lower rent but would require 60 days notice, an early termination fee of one months rent, and forfeiture of security deposit (One months rent) 

2. They renew for a 6 month term at same rent - but then we are trying to get new tenants in middle of winter 

3. We go month to month at higher price (looking for input on how much higher we should go month to month)

Thanks!!

Everyone, thanks for your input.  This is my first time being a landlord and appreciate that there is wisdom in counseling. 

I ended up sending an email stating that it was their responsibility to maintain landscaping, per the lease agreement, and that if it wasn't rectified by next weekend that I would pay to have it done and send them the bill.  I also stated that any fines incurred by the home owners association would be passed directly on to them as well.  We live outside of Houston and have had a lot of rain this week (if you saw the news you probably know this), but there have been plenty of opportunities to mow.  While I want to be fair and reasonable (and believe that I am), this is also a business and expect them to uphold their end of the contract.

I also followed up with a text message.  

I just drove by my property and the landscaping is very overgrown it is the worst on the street by far. How should I respond to this? Do I message them reminding them that maintenance of landscaping is their obligation and any fines incurred by the HOA will be passed on directly to them? Or do I wait another week and see if they've done the maintenance?

Grass was 2ft tall in some places. This is a class B+ property.

Karl/Alan,

Thanks for the response to add more clarity around the situation I am talking about a SFR. This is my first time leasing a property, however it is paid for and therefore I'm really in no rush to "settle". I've told people that Credit history is more important than credit score and I would be willing to evaluate a full credit report.

I have two potential tenants currently and am weighing my options. Both report a good income  well over >3x monthly rent, but both have criminal background history and low credit score (upper 500s). How should i weigh this into my decision making? What are dealbreakers for you?

Candidate #1:

Assault - 2001 - Omitted from application (only discovered on background check)

Low credit score likely due to large student loan, all other loans seem to be current and paid on time for the most part.

Candidate #2:

Assault-2011 (19 at the time) was disclosed on inital screening form

Haven't completed background check yet so no further details on why the low credit score.

Hi All!  My wife and I are both engineers who live in the Houston area and we are interested in beginning to invest in single family residential rentals.  Currently we are at ground zero, owning nothing but our home, but we hope to slowly build wealth by purchasing 4 to 5 single family properties using as little debt as possible.

I look forward to learning more and contributing as I get to know people on this site.