All Forum Posts by: Jennifer Rysdam

I would put a lot of stock into their credit report. Maybe also ask for double deposit because of the lack of verifiable funds. Former landlords should be able to verify if they pay rent on time or are late because of seasonal work issues.

Another thing to consider is utilities. Do you pay all of the utilities? How would that be split if not. Where is the washer and dryer? Is it in the basement? Would current tenants be able to still use it? Is there a separate entrance? Could you put one in? Maybe something to consider when the current renters move out.

Here is a link to a similar thread with lots of good info: https://www.biggerpockets.com/forums/51/topics/180101-bank-accounts-checking-accounts
I have a checking, a savings, and a savings for security deposits for my 8-plex. I will do the same for all future investments. I like to keep things separate for tracking. I know you can use QuickBooks classes to separate things as well, but I prefer this way for now.

You shouldn't have to ask for his payment history on his mortgage if you are pulling a credit check. That should tell you. I would honestly base a lot of his qualifications on his credit check. If there is a ton of debt then maybe he will get stuck with it? If the wife is getting the house then he hopefully won't get the mortgage.

You should ask you tax guy when you're doing your taxes.

If I had a LOT of money, I'd buy the largest multi-family that I could afford. Then I'd have property managers, maintenance people, etc. to run it while I oversee the whole thing. My time would be spent overseeing and looking for the next investment. I think that would be more what you are looking for.
I flip houses to make the cash to invest in such a place. I'm almost there! 

Have have you been flipping for a while, or are you just contemplating it? I wouldn't quit my day job until I've done it for a while and know that that's what I want to do. I flip houses for my living (for fun) but my husband has a full-time job with health insurance, and I also own a 8-plex. 

You should just sit down and make yourself a plan, and figure out how all the finances would work and what your strategy is. Good luck!

Are the property taxes high? Lots of turnover? Maybe just a good deal??

My 8-plex brings in 2.2% of purchase price but I had to raise rents. They had just taken the building off of Section 8 and nobody was paying the rent difference, so I got a sweet deal on it. He just wanted to get rid of it, instead of trying to get the tenants to pay the rent. The value almost doubled in my first year because I got the rents up to market and completed some deferred maintenance. I got lucky!

My best advice would be to spend lots of time on bigger pockets, and read up on everything you want to know. Listen to all of the podcasts for a wealth of knowledge, and buy/check out from the library all the books they recommend. Become a student of real estate investing and learn, learn, learn, read, read, read. Good luck!

Get bids to see how much it would cost to split it. I have an 8 Plex and the water and sewer are all together, so I pay it. They pay their own electricity, which is heat and electric for their unit. 

The other thought is that many renters like having all of their bills be an exact number every month, so that might be a selling point. to have utilities included.