All Forum Posts by: Ihe O.

Its hard to say - personally 650+ .... I have a personal friend with horrible credit (600) however he's never once missed a payment on his rent. not sure if its legal to view bank statements?

The underlying problem with not establishing a fixed minimum score when screening is that if credit is going to be used at all you open yourself up to charged of possible discrimination. Flexibility in screening is a very poor approach to operating your business.

Set a minimum score otherwise you could face a serious legal challenge. Remove subjectability from your screening practices.

"Only reason he has a low score is due to having defaulted on payments for his student loans. He sacrificed those in order to always pay his rent on time "

As a landlord that is the type of decisions people make that I need to know about. This individual chose to live above his income level and as a result chose to default on creditors. He is not financially wise and is not someone I would rent to for that reason. I do not want any tenant that lives on the financial edge and chooses to default on debts. Additional financial stress will result in non payment of rent. He chose to live beyond his means. This is why credit scores are a very important factor in assessing risk. They attribute a % risk factor to every individual. It is not that it was a medical bill or a student loan that caused the problem it was poor money management in not preparing in advance to deal with such issues in regards to maintaining payments. S**t happens to people, I need to insure that as a landlord I do not end up paying for it.

Hi Friends,

I Was doing some research for a Client of Mine Regarding one of his tenants and specifically his liability as owner of that house. His Tenant is a Section 8 Renter and the Tenants have a Barking Pit-bull in a Pen in their backyard.

The Dog is kept in a Cage all day and is obviously not being treated well.

Story is, his tenant's Barking Dog is disturbing neighbors in a SF Residential Neighborhood. My Client thinks he has no-responsibility. I advised him other-wise.

Here's an article how a 'Barking Dog' can cause one person to loose their Home.

http://abc13.com/pets/family-loses-$500000-lawsuit-over-barking-dog/511454/

If you don't control your Tenants,....they will control you.

Do you have a good estimate for what % should be knocked off the gross ROI to get the net of taxes ROI?

I think that's a good way to look at it, but shouldn't it only need to be 7% THEN apply a risk premium?

Are you guys not afraid to be in debt for 30 years? All three of my houses I bought on a 15 year loans to avoid being in debt. But all three of them have negative cash flow. One is almost paid off so my plan is to sell it and it will help paying off the house where I live...

I see a lot of investors are taking 30 year loans and buy 50 properties/units that do have positive cash flow, but what if another market crash happens and you have 50 percent vacancies on your 50 properties? Are you guys not afraid? Or what is your strategy?