All Forum Posts by: Erin Church

Thank you all for the input! I am not renting to the person and let them know that it was because the felony was classified as violent. (The property is in SC, so we have pretty landlord-friendly laws.) As I mentioned in the first post, I do have quite a few other folks that are interested and am looking for the one that I think will be a good tenant so that I won't have any safety concerns for myself or the other house on the property. (The unit being rented is for a cottage behind a house.) I just thought it was so interesting to have an actual bank robber apply to one of my units!

@Cathy B. - You're spot on! My screening criteria doesn't allow recent violent felonies. I agree with you and @Colleen F. and it is case by case if they felonies are over 10 years old.

@John Clark - I agree, and the timeline makes it tougher to even consider.

@Chris Seveney and @Alan F. and @David Dey I like the way you all think! ;-) hehehe 

@Adam Martin - I agree with you. I will potentially be lenient on some things if they are over 10 years old, but I have a hard time when it's recent. 

@JD Martin - I usually don't. It has to be quite special circumstances for me to genuinely consider it (like a long time since it happened, established credit, steady job, good income, great references, etc). 

@Justin Brickman - That is probably the most succinct way of putting it! :)

@Jeff S. - I'm lucky enough to be in a state that's pretty landlord friendly. I'm not sure of protected classes as I didn't look up mug shots. 

@Account Closed - She was sentenced "to 57 months’ imprisonment for Bank Robbery. She was also ordered to pay $6590 in restitution to the bank." So, I found the Bank Robbery charge and it was classified as a violent crime. I agree that it wouldn't be worth the risk for me, my property, or other folks in the front house (two houses, one parcel). 

Again, I have enjoyed reading all of your responses and appreciate the input! I just thought it was such a novel instance to come across! :)

So, I've come across something I hadn't contemplated. I have someone that is interested in a vacant unit I have that meets the minimum income, seems to meet the minimum credit score, but robbed a bank 5 years ago, served 4 years, and has been out for almost a year. They disclosed right away. 

When I researched the person, they passed a note that they had a gun and would shoot everyone if they needed to. They actually got out of the bank, but were captured later due to fingerprints. I do not know if there was actually a gun. 

I have one other inherited tenant that has a recent felony and they are a wonderful tenant that I will likely keep for many years.

I have other applicants, but but wanted to see what other folks thought - if nothing else, it's a fun thought exercise. :)

I like 

@Mo Karim 's ideas. :) Also, if you find a small company and become a "jack of all trades" so that you're doing some framing, general repairs, light electrical and plumbing, drywall, flooring, etc, you'll likely start to learn more about the whole structure than just starting off with plumbing or electrical (although, doing either of those can give you a valuable skill that pays you well). If you start off doing "all the things", you may also start to figure out if you'd rather be an electrician or plumber. 

Great advice above! I would also recommend getting into a few landlord/property management FB forums and search for things to put into leases. There will always be more things to learn/add, but it's a great start. (For instance, have a fee if they stand up a contractor/refuse entry.)  You'll want a lot of "If... then..." statements. Just saying something can't happen isn't enough. State the consequence - fee, additional rent, termination of lease, whatever it is. 

Also, deadbolts and just passage door knobs on exterior doors. It will save you soooo many lockout calls. :) 

Enforce late fees. Actually, enforce all of your lease. If you don't for one and then do for someone down the road, you open yourself to discrimination. 

Having an empty place is better than the wrong tenant. Be picky, check everything. Ignore sob stories... or consider them as a strike against a person if they're trying to play on heartstrings to qualify.

Congrats!!

I agree about doing screenings before. I do a prescreening (Google form) and it has helped make sure the folks that might be going there are potentially qualified and that they're a little more interested. I also tend to message the morning of the meeting to confirm that the time still works for them. So far, that's reduced no-shows by about 95%. 

For multifamily, I take care of the yards (well, I have a yard person do it). It prevents having half the yard look crazy and the rest look good. Also means tenants aren't storing mowers/gas under, near, around the house. It's a pretty big added benefit to the tenants as well. :) 

I agree with @Max Ferguson about reaching out to the inspection company. At the very least, they should refund the cost of the inspection. Are you in a state where home inspectors have to be licensed? 

I also agree with @Jaron Walling about asking other investors for a new inspector. :)

Additionally, I'd recommend going to the inspections, asking what they're looking for. Also, go to some off-market/wholesale walk-throughs, let the other investors know you aren't competition and see if they'll help point out the things that are wrong with it (they may actually like to do it as it will potentially reduce other people's offers). If you're in the North Augusta, SC area, I'd be happy to walk through and show you some of the things I look for. :)

I do want to mention that if you do a DSCR loan and plan on doing a conventional loan in the future, do not have it autodraft out of the same account as your conventional loans. When a conventional underwriter sees mortgage payments going out (or any repetitive payment), they'll ask for all the details... all of them. Even if it isn't "your" loan (if you're married and spouses hold property in individual names).

 Quite helpful! I didn't know that Clayton did financing for investors. I'll have to dig into that. I actually have my SC manufactured home dealers license so that I can "deal in" more than 3 MH in a 12 month timespan (it's crazy how low the threshold is to need a license) and chatted with Clayton, but didn't think to find out about the financing options. :) 

Hey Jeff,

Looks great! Are you only selling to cash buyers, owner financing, renting, or something else? (I don't know anywhere that will lend on a second set home. If you do, I'd love to know who.)

Do you have a buy box for the used homes you purchase? How much rehab are you typically having to do? :)