All Forum Posts by: David Moore

 Please read the post again.  The idea is to have the tenant make the call.  

I've heard in Minnesota that a lot of service dog certifications are bogus.  I will disagree with most the posts that say don't challenge this, except on one point.  Cough up the $$ and absolutely get a lease drafted by a real estate attorney.  Mine are, and they are amazing.   Just say in your lease no pets are permitted whatsoever.  Let the tenant then make the call.  If your properties are better maintained than your competition, and your services are better, and your rent is just a bit lower, most tenants will not want to rock the boat.  You as the landlord, then are not making the call.  Your tenant is.

I value credit reports highly, but look for exceptions.  It is one of several pieces to a puzzle that paint a picture of a good tenant, and hopefully longterm, and a poor tenant.  

@Peter Mikhjian

This is a great thread....a lot of input.  The muti-family properties are tricky.  Have you read any books on how to value them?

In my experience,  I have found on nearly every multi unit property I've seen for sale, the seller had no idea at all how to calculate cap rate.  They pull some number out of the air, and then put a pricetag they want.  Given all the good advice here, calculate a purchase price based on net income.  Don't take their number.  Start from the current rents and subtract all expenses to get to a yearly net income.  Then set the cap rate you want to get...say 7%.  Based on your numbers, the cap rate looks extremely small.  Don't be tempted to base it on what it would rent for fixed up.  Base it on current rents. 

@Account Closed

Sounds like a great  idea.  Thanks for that!!

@Account Closed

 I already denied one of the applicants.  But the two remaining good billpayers have not decided whether to accept the deal.  Both are saying they will support the girlfriend if she cannot pay, so do I write the lease as you suggest, and if the girl does get to the point where she can pay, does it matter to me as the landlord?  This whole thing has been a real head scratcher for me.  To further complicate matters, in Minnesota, if all three are on the lease, and two only pay the rent, all three are eligible for renters rebates, even if the two pay all the rent.  I've found interacting with these young people to be rewarding and frustrating all at once.  They seem incapable of understanding we have no deal until a lease is signed.

How do they co-guarantee?  Do I write in the lease that the two will cover the rents for the girls if she does not pay?

Four young people applied to rent one of my houses.  One has a great credit score, one has a rich father (Doctor) who pays his rent no matter what, and two have zero credit history, and both have erratic or very recent job hires.

I've already rejected one of the four due to no credit history and too short of job history, and the fact that the guy doesn't respond when I asked for follow up info.  The other non credit worthy applicant is the girlfriend of the guy with the rich father.  

Now, the rich farther and the guy with the great credit score have said they will help pay for the girlfriend of the rich guy.  She has zero credit, erratic work history, and also has not responded to multliple inquiries.

My solution is to offer to rent to the two who can pay, and reject the other two.  However, the two will cover for the girlfriend.  Sign up the  three in this case, and reject the one? Your thoughts?

My wife was not on board at first, but we both prayed about it, and developed roles each of us are comfortable with.  I work with realtors or investors to find properties we both like, and we look at nearly every prospective property together.  We have an agreement that if one of us does not like the unit, we pass, no matter how sweet the return would be on it.  When we are both "yes", we bid.  When one is no, no matter how good the deal, we walk away.  My wife is the one who shows the properties, and we work together on remodeling ideas. 

I'm showing one of my properties and I've gotten a good response to come see the property.  One guy sounded really impressed with the property, and he was very confident in his credit, telling me he is an electrical engineer.  He says he wants to help his sister, who is divorcing the husband, and needs a place soon for her and the two kids.  I will require both the adults to do the credit check...he doubts her credit is good.  Yet, the brother is convinced he will foot the bill each month.

No matter how well intentioned, 2 or 3 months out, if she isn't getting assistance or looking for work, how can I trust this guy to keep paying the rent?  I know how family relations can sour in a minute.  Have any of you come across a similar circumstance, and can you share how you addressed it?  I have other applicants, but I want to give this guy a fair shake.