All Forum Posts by: Heather Schmidtknecht

I am signing a purchase agreement 5/6/20

For a property that I hope will close on/before 5/22/20, and I hope to have tenants in by 06/01/20.

There are some projects that I’d like to do (between the 5/22 closing and 6/1 when tenants move in) that will require a building permit — can I apply for a building permit so that the whole approval process can start now so that we’re set to move forward with our projects once we close?

Just trying to be efficient, as these projects will be easier to do with the house vacant!!

@Edgar Sanchez, I have been showing my SFR that is occupied until 5/31/20.

Here is what I did: 1) screened interested parties heavily prior to inviting them to see it. 2) took my husband with to the showing... so he could wait outside for the next party (I schedule my appointments to show my units every 30 minutes). 3) I attached this message to their appointment invitation: “Out of respect for the current tenant (due to the Covid-19 situation), would it be possible for you to come without children & wear a face mask?” — no one had a problem with this and everyone complied. 4) I told them upon entering that I would open/touch all doors, drawers, closets, light switches, etc... so as to minimize surface contamination.

The only thing I might do next time is bring a bottle of hand soap and paper towels and ask them to wash their hands upon entering.

I had a young expecting couple view a SFR of mine yesterday. They both have jobs that have been or could be affected by Covid, as they are just at the income level that is 3x the rent amount while working... so I'm a little nervous what will happen if the Covid situation impacts their employment. The young woman's mother accompanied them during the viewing yesterday and has offered to "back" them when I voiced my concerns related to their finances. Can I put the mother, in addition to the young expecting couple, on the lease... thinking that if they don't pay, she will?

@Peter Philando, I have listened to him on the podcast... he is very inspiring!! I followed that link... the FMV of a 3-bedroom is $979... my rent is $1200... so does that mean that the Section 8 will pay $979 and the tenant will be responsible for the rest?

I recently posted an ad on Zillow, Craigslist, and Facebook for my 3-bed, 2-bath SFR. I received numerous inquiries, 75% of which asked if I accepted Section 8. I am trying to learn more about the pros/cons of considering Section 8 (I would not plan to lower my rent, my standards for selecting a tenant, or my expectations for the tenant to follow the stipulations of the signed lease).

P.S. I’d like to keep this discussion non-judgmental please. ;)

@Charlie Anne, my first purchase was a SFR two years ago and I am so glad I bought it. It's a 3-bed, 2-bath home and it was nicely updated/maintained when I got it and I have no problem renting it, as this seems to be a desired size for families in this Minnesota college town — many of the other rentals are in poor shape and marketed to students, as the landlords of those properties make a little more charging by the room (but then they have to turn them over every year, too).

I bought my second rental last summer (same size but on the other end of town) and am in hot pursuit of another now. Here are a couple things I’ve learned the last couple of years:

1) Write into your purchase agreement that you can show the house to prospective tenants once a week. I did this for my second property and had a signed lease the day I closed and took ownership.

2) When negotiating a final purchase price for my second property, the sellers gave me their lowest acceptable number. I knew I couldn’t make those numbers work with the rent I was anticipating, so I placed a dummy ad on Craigslist (no pics, just a description) for the rent I would have to have to make the sellers’ numbers work (just to see if I would get any bites)... and I did!

3) Finally, I listen to the BP podcasts and recently heard the tip of contacting “for rent” advertisers and telling them that I’m not interested in renting, but wondering if they’d be interested in selling... this really works! I recently put a post on Facebook, asking “Are you tired of being a landlord?” and saying what I’m looking for — I got a couple of leads and I’m going to see one over lunch tomorrow! :)

@Kevin Hafemann, my sfr properties are located in Minnesota — my tenants pay all utilities, including water, sewer, & garbage and they are responsible for their own lawn care & snow removal. All I need to worry about then is paying the mortgage, taxes, & insurance on a regular basis and maintenance as needed.

@Tracie Janoska — check out BP’s podcast #356 — I just listened to it the other day and it offered a fabulous spin on Section 8.

@Chauncy Gray, every good faith estimate I have signed has the TOTAL AMOUNT paid at end of the loan term, in addition to the monthly payment, etc. so even if I was not educated about this, if I am reading documents before I sign them, it’s there in plain sight (not fine print) —- at least at my bank in Minnesota.

@Michael Henry, I have property in MN and recently had a front door replaced — it was right around $500 for a good door & labor.