All Forum Posts by: Doug McVinua

@Account Closed Most lenders won't approve a loan like that if you are borrowing the down payment. If the down payment was in your account for a couple of months (seasoned) then it would most likely be looked at differently.

Another source for the down payment other than borrowing it would provide you with more options.

@Zane Belden Welcome to Biggerpockets, very new myself and enjoying the knowledge base.

Noticed you making some comments regarding types of properties and wanted to share a little bit on financing. 4 units and under qualifies for traditional financing methods so we have lots of options. Even some of my hard money lenders won't go over 4 units, I think because they know its harder to refinance.

One client has done well buying 4 plex's with hard money, doing the repairs funded by the hard money and then refinancing into a conventional loan for long term hold. His total acquisition costs are reasonable, cash flow is very positive and he is still looking for more units.

5 units and over is a whole different animal on financing, more owner carry etc because they fall under the commercial umbrella.

@Jacob Kaufmann My wife and I moved to Arizona in 1998 from Iowa and I started in Real Estate immediately. Been on the ride when the market was stable and rode the roller coaster. 

Welcome @Jacob Kaufmann I'm pretty new to the site also and finding informative discussions. Real Estate is such a fun avenue with so many opportunities.

Logan, Power Ranch is a great area for rentals and your current home looks like the perfect size, bedrooms etc. We have all of your properties currently rented with good tenants. We just rented one in Gilbert very close to Power Ranch in just a few days with the exact specs of yours.

We are professional Property Managers based in Gilbert and I happen to be a pilot. My pilot hours are all for fun in a C-172. What are you flying now?

Glad to hear the property condition is OK! Obvious concerns regarding the extra tenants. It does seem to confirm your fears and also support a change was needed in management. 

Sometimes situations like this result in a tenant change as soon as it can be done without harm to you. As a Property Manager myself it seems some of the more difficult tenants are those that are acquired with new properties. We are very careful to run every tenant though a carefully planned screening process, dot the I's and cross the T's and doing so creates a good respectful relationship with them.

Properties in the Phoenix market are renting well and we are able to locate good quality tenants. Knock on wood all of ours are currently rented, occupied and rent paid, yea!!

Karyn

1st, sorry to read of your challenges! You have a pretty involved situation that might be best discussed in a phone call just due to the moving parts. Open to answering any questions.

The Security Deposit: Most Arizona agreements are clear that with notice the Deposits are transferred back to the owner and or another Property Manager via written instruction after the Tenant has been notified. The tenant should not be on this check at this time if a valid lease is in place, they are still deposits.

The Property should be physically checked as soon as possible due to your concerns.

The Arizona Department of Real Estate would be very interested in this situation and would very/extremely likely immediately open an investigation into the matter.  The Department will most likely complete an audit of this broker within days of your contact.

@Amanda Larson @Timmi Ryerson Agree 110% on the screening and the Inspections! We screen for Credit, Criminal and Eviction as well as the Social media profiles etc to make sure the applicant information adds up. I have found more than one via research that was providing, shall we say less than complete information.

The Inspections are also critical as well as we utilize drive byes and vendors in addition to our regular inspections. Reliable vendors tend to be a great set of eyes and ears that most tenants don't really think about and just open up to them. We have excellent vendors and it's amazing what tenants will tell them. Tenants also dont tend to prepare for a vendor visit like they do for one of our scheduled visits.

We also obtain bank statements, its interesting how much you can learn about someone from a bank statement. I've had to look at my own before with a different set of eyes just to see any patterns, like how often we eat out etc.

Arizona is excellent, the Arizona Landlord Tenant Laws are very reasonable and tend to favor the Landlord. The Arizona Association of Realtors works closely with the Legislature and the Department of Real Estate to ensure the statutes are maintained. We also have excellent forms that cover most situations that also have precedence supporting the forms. Rarely do we need to involve attorneys in Landlord Tenant situations so we can control the owner/landlord costs.

The properties we manage are all rented, occupied and rent paid! Yea!! Rentals in the Phoenix market do well, we have a good supply of tenants to choose from on most properties.

Denny @Denny Robert We don't know what we don't know! Sometimes I'm in the first half and sometimes the 2nd part of that one! Always something new to learn and also hopefully something to share with someone else. Seems like a great group.