All Forum Posts by: Heath Sizick

Hi Kayla. Congratulations on your last semester of college & the exciting endeavor of the military duty. We work with many military investors here in Coastal Carolina. Where are you hoping to buy property?

These are difficult decisions. I can see why you are torn. I won't say one way or other what you should do. There is risk in both options & as an investor you need to weigh those risks & stand firm on whatever you decide. 

However, a few things you could do: You could talk with them & learn more of their story to figure out why their credit score is low as well as the type of people they are. Are they good communicators? Are they professional in their interactions? These are good indicators of quality tenants.

You can also adjust how much deposit you take as well. For the 700 credit score you could take 1 month's rent as a deposit but for the other 2 you could take 2 months (as an example) due to the risk factor. 

My company accepted a tenant with a horrific credit score because we heard her story. She paid us up front for 12 months of rent & then paid herself each month & at the end of year 1 she paid us for another 12 months...she did this until her credit improved. 

Good luck!
  

Agree with everything said above. Learn from this experience & do some simple calculations to find a good rental rate. $1200 at 1.5 months vacant will yield a greater annual EGI ($12,600) than $1350 with 3 months vacant ($12,150). Let's say you started at $1150 & only had 1 month's vacancy your EGI would be $12,650. You can always increase rent annually. Too many people want the bigger rent but suffer thru vacancy when STARTING at a price a bit lower will produce a greater annual cash flow. 

Welcome Terrence. Pretty new here myself. Best of luck to you! So many good things in these forums.

Welcome Elizabeth. My wife has focused entirely on residential real estate but now that I am a BDM for a PM company she is also expanding into helping investors. 

Hey Del, welcome to BP's. Sounds like you have the motivation & ambitious but precise goals. Those things eat your introvertness & lack of sales background for lunch. I would encourage you to find local REI meet-ups in your area. I am sure you will find folks that have similar backgrounds as yours.

I am not unsure of your current income & life circumstances. Many people start by househacking. And you do not need a penny to start REI - many people's first investment came to fruition because of friends, family, or even partners. There are many different ways. Lastly, don't be too hasty to move out-of-state until you have some experience.

Hey Kris, fees will vary in different markets but not by a lot. 10% is pretty normal around here (coastal carolina) & at least for our company, it matters not if they are in-state or out-of-state. 

Welcome Helen. I am in Wilmington. What aspect of real estate are you digging into?

Welcome @Jacqueline Henderson - relatively new here myself. So much good information & so many individuals willing to offer advice from their wealth of experience. Best to you!