All Forum Posts by: Greg Franck

Thanks to everyone for the great feedback on this product type.  The points you have brought forward will allow me to approach this from a more educated position.  

@Robin Simon thank you for the information.  I will review this.

Hello BP,

We are looking to do a cash out refi on one of our SFR's and reallocate that cash into a downpayment on an additional property. We are Fannie / Freddied out so we will be looking to move into the non-QM space. I have educated myself on some of the products available and found the most interest in a DSCR loan product as the SFR we are refinancing is cashflow strong. I was hopeful that some of the BP members with experience using these products can provide some basic insights on what we should look for in a provider and some of the terms / covenants that may differ from conventional financing. Additionally if there are any provider recommendations it would be appreciated.

 I will be having conversations with lenders in the next few weeks. Appreciate any insights you guys can provide!

@John MacMichael  if you want to build your own documents and send manage properties I would recommend a book published by NOLO called Every Landlords Legal Guide. Purchasing the book provides access to their forms and the knowledge / tools needed to build your own legal documents. A month to month agreement is included. The caveat here is to still have an attorney who understands your states laws review the finalized document. The cost is not great and you will have a better piece of mind in the end. I hope this information is helpful. 

@Nathan Gesner thanks for the humor and great info...  I will DM you. 

@Theresa Harris thanks for the reply, I am in line with that thought process fully. We have no issues managing tenants and issuing notices for lease violations or other disturbances. In addition we have a Pet Addendum that I will be changing to ESA Addendum which the tenant will need to sign as part of their lease. The Addendum outlines proper care, vet / vaccination requirements, and behavioral expectations for the animal. It also gives the landlord rights to request the removal of the animal at anytime. Whether this would hold up in court if challenged for an ESA I do not know. 

 @Joe Villeneuve I understand what you are saying here however you need to use some metrics as a measurement tool or target for property performance. That being said what do you use to measure your properties performance?

Hi All,

Just wanted to solicit some feedback from those with more experience around tenants with emotional support animals.  To shorten the whole story, basically during a renewal of a tenant they mentioned that they now have a dog and it has been registered as an emotional support animal. This occurred in a matter of days, we believe that the dog was probably on site prior to us engaging the tenant around their plans at the close of the current lease. Upon our request for validation of disability, the tenant provided paperwork to include vet records, the Emotional Support Animal (ESA) registration form, and a "doctors" note stating they have anxiety and need a dog. We are currently in the process of renewing the tenant regardless as they have been a responsible tenant in the apartment. Based on this we have no reason to believe that the tenant would not be a responsible pet owner as well. 

That being said we are disappointed in the tenants approach to this matter. The first issue we have is in regard to our breed restrictions which are clearly outlined in our leases. The dog the tenant got is a pitbull, which is in violation of the restrictions we have in place. However due to the registration of the animal as an ESA we are not able to enforce breed restrictions, charge a pet rent, or charge non-refundable deposit. The first concern aside, secondly we have concern around the animal becoming a nuisance to other tenants in the building. This last point is really the focus of the post....

Have any of you had to deal with an ESA that has become a nuisance at a multifamily or other property?  If so how have you managed through the situation successfully? Any constructive feedback or discussion is welcome.

@Julie A. I feel though as if you are referencing several different metrics throughout this post. Cash on cash simply refers to the return that you are making on your cash invested. I believe you are interchanging this with Cap Rate which is a measurement of a properties Net Operating Income versus price. Cap Rate would be your best measurement for determining the rate of return for an all cash purchase. If you are looking for SFR cap Rates in the 9 - 10% range I would say that would be difficult now. As others have mentioned in this post however, buying a property with conservative leverage increases cash on cash potential.

In regard to measuring return on your real estate use a metric like Internal Rate of Return (IRR). Remember your cash flows will not be uniform as you will have expenses and other line items that will impact the bottom line unevenly. Also the largest cash flow event(s) in RE are the purchase and sale of the asset. These are taken into account when using IRR.

I hope that this is helpful. Good luck!

Are you talking about qualified leads or inquiries? These are two different things. We get tons of inquiries during our marketing process.  85% - 90% of these are filtered out through our initial pre-screening process.