All Forum Posts by: Ed B.

Sorry about your duds. May I suggest:

It could be temporary. Don't panic. Sometimes a good applicant doesn't apply right away. It take discipline to hang in there and wait for the right tenant.

That said, if year after year you have the same problems of usually getting dud applicants, be smart and realize either the property or neighborhood has problems. You can't fix a neighborhood. Life is short. Time to sell that turkey.

Wade, I think you might need to improve the neighborhoods you are buying in. Even though you improve the property condition to be clean and functional, that won't attract a good tenant if the neighborhood is marginal to begin with. Sure, the dirtbag tenants will be glad to reap the benefits of your diligence, but once their lease is over you'll likely discover just why they are dirtbags. A quality tenant will comply with their lease and not cause you headaches. If you are not getting any quality tenants to even apply in the first place, that should tell you something right off. As for the stolen condensing units, consider enclosing them in those metal cages which you can lock. and also try to fence your yard with locking gates.

Consider this: If most of those listing go pending even before they hit the MLS and/or they have multiple offers, that's usually a sign that excessive competition is driving up the price. You think you can come in and tell the agent you're interested in buying if the deal falls apart? Sure, you'll probably get some takers, but they're probably going to want to sell at price and terms similar to what fell through. If you go through with that, you'll probably end up with an overpriced property where there's zero to little profit potential. Is that what you want? The idea is to buy a profitable investment, not to simply buy. I think that strategy would be better in a neutral or buyer's market, not a seller's market. Sadly, when you've got ruinous competition, you need to figure out a way to get to the seller before everyone else, or have a plan to increase the property's yield that most other buyers have not considered, or are not willing to pursue.

All I can say is you must live in a crappy neighborhood to get those kind of loser applicants. My sympathies to you.

I just made an offer on a SFH in which I was overbid by another buyer. If I had bought it here are the numbers I would have had in it:

$92,000 down payment
$40,000 to add two bedrooms and two bathrooms
$132,000 total invested

Cash on cash return about 11%

Property is in good neighborhood, would be easy to rent and attract quality tenants, and held at least 20 years. Good potential for appreciation

Just curious how that rate of return compares to what others are getting.

Amie, you speak the truth about people wanting to move in TODAY. That is a red flag for sure. I once rented to family in a hurry to move, who also volunteered to do any necessary cleaning. I had to evict them a few months later. I found out they were in a hurry to move because they were being evicted. Another time I rented to a guy who needed a now, and already had his stuff in a U-haul truck. I had no other prospect and dreaded continuing to search for a tenant, to I took him. He voluntarily moved out about four months later at my urging, and I lost a few hundred dollars from that loser. Be very suspicious of people want to move in right away.

Craigslist doesn't work well in bad neighborhoods where the potential tenants are computer illiterate. It also doesn't work well in marginal neighborhoods, because even if you have good photos, tenants will quickly screen you out once they realize the neighborhood sucks. That's been my experience, because I was stupid enough to buy two properties in lousy neighborhoods.

You might be making a mistake by evicting now, and here's why: your goal should be to get the money,even if it's late and you have to wait a bit. Taking roughly half of it now, means you're only taking a chance on the other half not coming in. Refusing even partial payment and evicting if necessary is legally correct, but may not be the best option. What is this tenant's track record? Does he have a garnishable job if he fails to pay? I don't advocate trying to figure out if his story is legitmate, but what if it is, and $400 is all he really can give you? Cars break down. That's life. Some people's finances are so thin that they really can't pay for a car repair and rent. Perhaps you made the mistake by renting to a person who either doesn't have a credit card or it's maxed out, with which to pay for this car repair and buy himself some time? More than once I have let tenants make payments to catch up, and it's often worked out. I didn't like doing it, but it was better than telling the tenant "I'm right, you're wrong, pay me now or get out."

Each situation is unique, but I suggest you try to remain flexible without being soft. You can always take the $400 and immediately give a 3 day notice for the balance. Just try to not to get involved in the tenant getting you to agree to more time IF he give you $400. Best to keep your mouth shut, grab the money, and then open your mouth. I hate it when a tenant tries to leverage me into a situation when they have no right to do so

I've always been very wary of investors who buy, rehab, and sell something as a "turn-key investment." sounds good in principle, but there are too many ways to become the "suckeree" if you're not careful.

I once called on an apartment building for sale. Numbers were intriguing, but it wasn't without some persistent questioning that I finally uncovered that the broker selling it was also the owner, or at least had some partial ownership interest. The fact that he didn't readily reveal that spooked me. I smelled a rat and tossed that one really fast. When people lie or try to withold things, be very very careful