All Forum Posts by: Jesse T.

 Good point.  Do they have a history of paying rent/utilities?  Does your state allow collecting 2 month security deposit or last month's rent on move-in?  I definitely would want an extra buffer if renting to someone with no credit.

What is the relationship between the 2 tenants?

Is the Realtor the one listing or a potential buyer's agent?  As other said if it is a buyer's agent, you need a new one.  Talk to the broker if you have a contract with the agent - they should have an agent who is more suitable.

A proof of funds and non-disclosure seems reasonable for access to the financials.  If the agent won't request them without you writing a contract, tell them you can't price your offer without the financials :)

I would write down evaluation criteria ahead of time(min credit score, income, no evictions/felonies etc.) and then evaluate the candidates in the order the applications are received.  Generally the sooner they get you an application, the more they want the house.  In addition to an escalation for the 2nd year, I would include a significant month-to-month premium at the conclusion of the lease.  If they balk, you can say your intent is to charge above market rent, but to get them to sign a 2nd lease at that point if they want to stay.

The person with the documented income matters the most.  It also matters how bad is the bad credit.  What is the rental history?  Depending on the area of the market, you may have to take tenants with less than perfect credit.  However you still want to make sure they don't have evictions and pay their rent.

 The key is that her family income needs to be able to cover both mortgages.  This is how I did it for my current home.  My previous home was consider as mortgage debt with no rental income.  I don't think that being underwater/equity situation should play a big factor.  

Lenders are definitely very wary about people claiming they are buying a property OO and using it as an investment property. In a move up situation this is less likely to be an issue.

Welcome to BiggerPockets.

 Sorry I didn't mean do a side deal.  I meant as part of the agreement - agree that the broker should only get paid once.  However if the agent is working for free, they won't be as motivated.

IMO at the very least you should at least get the 1/2 back that was shared with the tenant's agent.  You probably would have to go to that broker, if your broker can't get it back.  On your side, maybe you can get the re-list free(although I might be inclined to paying the agent but not the broker, so the agent is motivated). 

Technically you could sue/threaten to sue the tenant, but collecting money from people not living in a house is often very difficult.

Welcome to Bigger Pockets.

You may luck out every once in a while, but generally people will only sell assets that are performing well at a premium.

One area you might look to for investors looking to exit, would be rentals that have been sitting on the market for a little over-priced for a long-time.  Some of them are likely to hold out for too high a selling price, however there maybe some that are receptive to a pitch of - I would have to put "X" into the property and the market rent is likely "Y".