All Forum Posts by: Dan Perrott

You can take apps based on the expected rental start date.   The lease can then have a contingency based on your ability to move out.  However, applicants may not want to sign a lease with this type of contingency.   Hope this helps.

@James Jacobs - Welcome to BP!

First - You must see the entire property and have the ability to inspect it.  This is required - no exceptions.

Remember that you will be inheriting the problems of the current landlord.  I would talk to each tenant and discuss their situations.  Do not be afraid to ask questions - remember this is business - not personal.  If you find issues that may be hard to resolve, you may want to make sure that the current landlord takes care of the issues (evictions, resigning a lease with the women only, etc.).  If the property has the potential for the long-term, the tenants are a short term issue.  Just make sure that you are not pulled into a legal mess because of the current landlord's situation.  You may want to consult a lawyer after your discussions with the tenants.

Good luck and happy investing!

@Brendin Wood In my experience in Indiana, taxes are 1 year in arrear.  So the time you own the property will have the taxes due next year.  The taxes are prorated on closing.  When you purchase, you should receive the taxes from the seller for the previous year (not yet paid) and for the current year up to the purchase date.  On the sell, you would pay the taxes to the buyer for the current year up to the date of sale (includes $ you obtained in the purchase).  Hope this makes sense.  Note that this is experience and not intended to be legal advice. 

For insurance, there are companies that specialize in short-term, unoccupied properties.  These policies cover the rehab time period and can usually be paid month to month.

@Terri Mccullough I use www.youcheckcredit.com.  You have the options to order reports for anything that you are looking for - financial, eviction, criminal, etc.  I charge an application fee that covers the processing fees.

What I do is enforce my standard documented rental criteria.  A Section 8 applicant can usually not meet the standard criteria like verifiable income of 3x rent(does not matter the source), 2 years of employment history, Minimum credit scores, no evictions, no legal actions from a landlord, no outstanding debt to a utility company, etc.  I will not discriminate based on income source but the normal section 8 applicant cannot meet the rental criteria that is consistently applied to all applicants - no exceptions.

They make cameras that are in a protective housings...

@Tony Velez Our rent is due on the first, late on the second.  Late fee of $25 on the first day and $10 each day after that.  I file for eviction on the second.  Remember this is a business - no emotion and you must have consistency in enforcing the lease. 

Late rent payment usually happens once with a tenant and then I don't usually have issues.  They pay all of the eviction filing fees.  If a tenant calls before the rent is due and says the rent will be late, I usually with give them a day or 2 (once).  Our policies cause most of our tenants pay the rent before it is due.

@Mahonri Bussey - What I have found is that if you have a line of credit or an equity loan on another property, it is already considered in the debt equation, even if you have not used the credit.  Therefore, the banks will allow you to use the open credit as down payment because you have already "borrowed" the money and you have it in your possession. Hope this helps.

Once you get the first property, then you may be able to refi or open a line of credit on the existing equity and use it as the down payment on the next property.  Note that it is harder to get money to get money out of investment properties because of equity requirements.

Without a down payment or a existing property to leverage, you may need to find another source of the money to get started.

@Chris Rose  My experience with a property that has been vacant is that the utilities have been turned off for an extended period of time.  In the Indianapolis area, the utility company requires an inspection by a licensed contractor (electrician) prior to turning the electric.  Inspectors will want the utilities on to check the major house systems.  In many cases, the "repairs" that may be needed to turn on the utility may become the responsibility of the seller.  Therefore the seller, may not agree to the inspection to prevent potential additional costs.  You can get an inspection without the utilities turned on but the major systems cannot be inspected with out them on.

I have purchased properties with and without the inspections.  I have had an issue with plumbing that cost me thousands of $.  I always would ask for inspection unless a large concession for "as is" that will covers the potential issues.

@Russell Naylor - thanks for the reply.  Unfortunately, the siding has separated from the house and needs to be reattached.  Its not just an issue of retucking the siding.  My son and I are going onsite today to see if we can perform the repair.