All Forum Posts by: Garen T.

Hi everyone,

Thanks for all the great advice and opinions. I've decided not to rent to them.

1. The e-mails have been fast and furious about interest in the property. I don't think I'll have a problem.

2. As I started looking deeper into the credit cards balances he (and a few of hers) it looked like in general every card was maxed out and he was only paying the minimums. In addition, many of the credit cards were joint account listed. I don't think he's really extricated himself from his ex-wife. This could just be the start of complicated stuff for this pair. 

3. I have the criteria for a reason, and I need to stick with the criteria. Thanks for the reminder!!

There are many people who are getting out of the ownership space and moving to the rental space for the freedom it offers. If they have the right answers, these folks can make wonderful tenants IMHO. 

@Elliott Gansner
Are you planning on going for any of the Energy Trust of Oregon Incentives or Rebates? There are better and cheaper ways than having to use Earth Advantage. You may be eligible for thousands of dollars from their incentives. This is above and beyond what is required with the Home Energy Score (HES) if you are building within Portland city limits.

Please reach out if interested. 

@Ned J.
My criteria is as follows.

@Aaron Beauchamp: Do you mean collecting 1st month, 2nd to last month, and last month rent, plus security deposit?

I do like this idea. 

I had a very nice couple apply on a unit today. They both work at the same nationally branded company and have been there 5+ years. Combined income in the $125K range. Both freshly divorced and starting over. They submitted applications via MySmartMove a few hours ago.

She passed with a decent score. He got a score >500 but less than <550 and the system declined him. He is still on the mortgage with his ex-wife but she pays the mortgage. 

He has debt issues to the tune of about $70K in auto and other revolving loans. 

Comments;
Recency of a balance overlimit on a bankcard account
Not enough available credit
Average balance of auto accounts is too high
Bankcard account balances are too high in proportion to credit limits
Inquiries impacted the credit score

*****************

I got great vibes from this couple, but I'm not sure what to do when the results are mixed on a report like this. I'm assuming that if one comes below the bar, the fact that she is above does not compensate, right?
Looking for advice on what to do. 

Thanks

GT

@Sean Kollee. That is EVERYTHING that comes from that one vendor. I think it would include the windows etc.. I'll check into it. There were SO many bills from that one vendor I started to lump things together. 

Thought I'd share an update, and the costs I've hit so far on this project. 

Couple of pics to start things off. 

I have to be over there almost daily keeping up on stupid things and decisions the sub-contractors do not fulfill. I'm honestly really fed up with the general contractor.

As a reminder, I pay the exact invoices that are submitted to the GC. I then pay a fixed 9% fee on top of the non taxable amounts they were billed. Here are my costs so far.

I'm guessing I have another $50K to go. 

That will put the total project (building only, I already owned the land) in the $350K range. I had budgeted $400K for the project. 

Per sq foot that would be right about $105/sqft. 

@Brent Coombs  
Let's say the repayment would not happen and I was going to keep it leveraged. Is there a current thought of fixed vs variable in the economy?
I do like the idea of doing a 50/50 between the two. Hadn't thought of that.

I'm currently building a duplex that I'm funding using HELOC money on 2 properties that I own. I'm going to be maxed out on a rental SFR and I'll be close to maxed out on my primary residence. Total funds loaned will be in the $350 range. Both loans are variable and in the 5.5% interest only range.

Once the duplex if finished next month, I could convert everything to a fixed rate and pay off the other 2 properties. I think the real question is probably around how much these variables could rise. 

My intention is to pay everything off sometime in the next year. I have another investment coming due that will allow me to pay all the properties down to zero, but I'm not counting 100% on that. I'd like to prepare as if that money is delayed. 

Is there general advice right now to get money onto a fixed rate asap, or is there projections for continued low rates?

Thanks