All Forum Posts by: Justin Green

I am a firm believer in assets. Ask yourself will you be happy with buying a home now or renting to wait it out. Deals are out there but many others with cash will jump on them before you ever see them. I would build sweat equity now have cash in the future.

Just my 2 cents do what is right in your heart. Set aside the investing question and is the house a good fit for you?

Thank you all for the advise. The history is not a problem for most of you and myself included. The security deposit is. I have notified him the security deposit is doubled and needs to be paid up front. I do allow pets for all applicants. with the doubled security deposit and pet deposit I feel well covered.

I am weeding through possible tenants for my first rental. Out of the people we have met my wife and I both like an older couple with a small dog that have had a checkered past and were completely up front and honest about it. He has a DUI and Possession charge that came from the same traffic stop. He is not the kind of guy you would picture with a drug problem. It has been over 5 years and he has been on probation with nothing but good references and works as a construction project manager so problems with the house will be only major issues all small items he can handle. They have good rental history and communicate well with us. I have gone to their apartment and spent an hour talking and meeting the dog. They have paid $1400 a month at the apt for the last year, my rent is $1450. They cant make all the security deposit up front it will need 3 installments over the first 3 months.

So far everything checks out well and we have a good feelings about them being honest hard working couple.

Would you rent to them? Advise?

I looked into this for my first property that I am now am using as a rental. It is a 1200sq ft ranch on a sloped lot. The basement has 12' of ceiling height at the back and slopes up to about 5' near the front of the house. I was planning for a 650sq ft separate living space/apartment to rent for about $700-800 a month. Rough in bids were about $30K to get excavated, additional slider cut into the concrete foundation and framing/flooring in place. I am a very handy guy so after frame in I would take on most of it. $60K sounds in the range to have it completely turn key ready. I think its a great idea. My wife vetoed the plan as she was not comfortable with someone living below our house when I travel. Now that it is a rental its back on the future improvement list

I feel the some frustration in this post. 1 issue here is labeling Realtor's all in the same boat. A Realtor is an individual 1099 contractor. They are all individuals with different mindsets, different values, and different skills. This can be true of any group of people. There are all different types just because you use the same brokerage does not mean the agents all work the same way. I am a newer agent and love working with investors, its even better if they do repeat business. It sounds like you have not yet found your guy that aligns with your values. My goal when working with a new client is to create a relationship that goes beyond just closing 1 deal. I would suggest you meet with more Realtors until you find someone who clicks with you. Also it never hurts to put yourself in their shoes, many times the first phone call is simply to qualify you and see if you are serious. Can you imagine how many "investor" phone calls come into an office after some guru seminar comes into town.  In any profession there will be people who love to work hard and others that don't. You could say the same thing about Lawyers, Doctors, Flippers, ect.....

Find your guy or be your own guy don't let one 2, or 3 individuals determine how you feel about that profession.

Brandon,

The Portland market has been a hot sellers market since late last summer. Inventory is very low. Cash offers with no contingencies are winning the deals. I have had multiple offers on fix and flip properties. The pocket neighborhoods also drive activity up. Further out DOM can be more and values can be less, again depending on the neighborhood. I have been working with clients that want SFR and condo rentals but you must move fast, That usually takes losing 1-2 for them to understand.

To clarify. I will not be living in the house. I will be renting it to 2 adults who are roommates.

Thank you all for the insight

Would love to hear the thoughts and advise of others about renting to tenants that will be roommates. My first SFR I am turning into a rental is up for rent. I have a nice single lady with a 4 year old and her female roommate wanting to rent. Obviously both adults would be on the lease. Combined income is 3X rent, job and employment history checks out good. What are your thoughts on renting to 2 adult roommates?

Peter, I am a younger guy as well and would not recommend pulling your TSP funds to sit in a CD that gains 1% if your lucky. You will likely take a tax hit on your Roth as well. I work with many younger VA loan buyers also. I always recommend you will need some cash to present a strong offer on a property and have some negotiating room especially if it is a hot property. The VA loan is a wonderful benefit and if you put some skin in the game to prove you are serious that will help your offer. I had $6000 in my 401K at 23 and at 33 I have almost $200K in it from consistent contributions. You can loan against most 401K's if it rolls into a private sector 401K (I admit I don't know the TSP very well). I just loaned myself $50K out of my 401K to get into another property. No tax hit that way. I Love Real Estate and feel similar that my real estate is my retirement not the 401K, It is a nice cushion growing on the side though.

Great post Mike. I am writing my first rental agreement. I agree with the convenience vs necessity items. I will repair and replace the refrigerator and leave my old washer and dryer. I will not replace or repair the washer/dryer since it is a convenience item (sweeten the pot for the tenant). Most SFR tenants in my area expect to provide their own washer/dryer but not necessarily the dishwasher so I would take care of the dishwasher as well. Chipped counters and broken windows would be the tenants responsibility.