All Forum Posts by: Joe A Warner

@Irina Belkofer Wow! That's great info. I don't see 2 year lease requirements often. Do you have pretty good luck with that? What is your process if they want to break the lease and move out early?

@Ellis San Jose Pretty much aligns with my list! How would you measure "Low drama in life"?

Good Evening!

Of course when you are declining a prospective tenant from renting from you, you must follow all your local laws and not discriminate. But, how do you handle a situation when you have 2 tenants that are both perfectly qualified, but you only have one available unit? How do you decline the other person that meets all your criteria?

Good Evening!

I am closing on my first property next week! After about 1-2 weeks of work I'll be ready to rent it out. I am working on the finishing touches to prepare myself to enter the wonderful life of being a landlord.

I have my list of standards my tenants must meet in order to rent my property, but I am curious as to what everyone considers the perfect tenants to be?

What standards do you set for your tenants?

@Synthia B. It can happen!! I am so excited to begin my journey, I have many years of investing ahead and can't wait! Do you already have investment properties? 

@Amber Gonion Totally agree. As long as we are consistent with our investing, when it comes to property value it shouldn't really matter, your just buying at a discount. I am a cashflow investor so I am not terribly worried about property value as long as the cashflow is strong.

@Jesse Lynch also, no tenants in place. It was remodeled and then listed so both units vacant :)

@Jesse Lynch Thanks! Yeah, I feel fortunate on this deal. It actually came on the market the exact day I had a bunch of properties lined up to go see. Because of the timing I was able to see it twice and put an offer in within 2 days of the listing. Very competitive out there!!

The seller has some other properties he is looking at selling only because he is living out of the area. I think I may try and work on a deal to acquire those as well to start my portfolio!

Hello BP,

After a few years of "Analysis Paralysis", I finally have my first property under contract with a closing date in May. The house is a 3bd/2bth SFR (unit 1) with a separate 2bd/1bth house (unit 2) behind it on the same lot. Each property has its own address and separate gas and electric meters. The ideal plan would be to live in the smaller house out back while renting out the bigger one, but plan to purchase another property next while fully renting out this one. So the numbers below will assume it is a full on rental, since that is my final goal with this property. For now it will be my primary residence.

The Deal:

Purchase Price: $86,000

Financing: 30yr conventional loan

PITI (with PMI): $635/mo

Total Cash into deal: $7,380

Rent:

- Unit 1: $900

- Unit 2: $400

- Total: $1,300/mo

Total cash flow including non-cash expenses (vacancy, repairs, capex all at 7% gross rent) is $180 per month. I will also be able to add $50/mo. once my PMI drops off the loan = $230/mo.

Cash on Cash ROI: 26.06%

Even if I don't rent this property out and live in it with no tenants, I am already reducing my monthly rent payment that I have now by quite a lot.

Also, wanted to note that the main house is recently renovated with stainless steel appliances, granite countertops, custom bathrooms etc... A little too much for a rental in my opinion, but doesn't bother me any since the seller did all that before listing.

This would be my first ever deal...thoughts??

@Whitney Hutten Thanks Whitney! I couldn't agree with you more on that, great podcast episode! In my opinion 401(k)'s are best suited for individuals that plan on staying with a company for the long haul. I think that with my goals it just doesn't make a ton of sense to factor in the match to my decision since I may not ever be vested with 100% of the match.