All Forum Posts by: John Alosio

@Matt Clark

I abandoned the "doc" idea after poor response. I guess ppl didn't want to click on a link from a stranger. Now I just include questions in an email. See example:

"Hello ---- . Thank you for expressing
interest in my listing. I am not scheduling tours right now because the
unit is currently occupied. It will be ready to begin showing Mid July. I
will reach back out soon to schedule a tour. For now, could you please
answer a few questions to verify that you meet some basic
qualifications. Please be aware that this information will be cross-checked during application process.

-Estimated credit score

-Do you own pets? (if yes please explain)

-How many adult occupants?

-How many minor occupants?

-Combined yearly income

-Current employer and length of employment (2 years history)

-Have you ever been evicted?"

My listing clearly defines the criteria. So this step just weeds out anyone who did not bother reading all the way through.

So, Matt, its your first time? My best advice to you... screen screen screen. Do official background/credit checks. Do not fall for sob stories. Just make a criteria and stick to it. (Non discriminatory criteria of course)

Good luck!

Let me know if you have any more questions. I'd be happy to help.

Cheers

@Norma Rosa

Your situation is why the average tenant is terrified when they hear that their home is going up for sale. They assume there will be a rent increase and can only hope that the new Lord of the Land will be Just and Fair.

Landlording has a steep learning curve. Most say "its a business", some say "have a heart". In my experience, the answer falls somewhere in between. Its a delicate dance.
Having some level of compassion will help your business to preform better. The better your business preforms, the easier it is to navigate situations such as yours.

If you are desperate for that rental increase from day-one, then you send that pressure down to the tenants; everyone is agitated.
If you are stable enough to ride out a few months at current rent, that makes for a much easier transition.
Taking the hit for 3 months to give her room to plan could save you 10X that much... if the agitated tenant decides to stop paying all together. Now you've got a squatter that will need to be forcefully removed. And I can almost guarantee the condition of the unit will suffer.

A few years from now you will probably have forgotten about the handful of dollars you left on the table. Most important is that you got started! Congrats on your first rental property. Best of luck moving forward!

Cheers

@Jared Hottle

Thank you so much for your reply. Glad to hear it worked out for you.
Great advice. I'm going to look into Google Form.

I was thinking that I still want to do the official application, background/credit checks through apartments .com because I really like the reports they give. And everything is streamlined into my portfolio management platform. I'm looking at this as a Pre-Qual step, knock them out of the race before the official application process. Save them time and money too, if they had no chance of qualifying from the get-go.

Thanks again!

Greetings BP family.

I am gearing up to turn around one of my rentals. Previous tenant notified me that he will be moving out-of-state soon. So I have a bit of time to plan and hone my screening process.

This will be my 6th on-boarding since I began my journey. Each time I feel like I'm increasing my screening skills. However, efficiency is what I'm looking get a handle on. I've dealt with too many tire-kickers and time-suckers over the years. I'm trying to systematize the process down to only have the best quality folks walk through the doors.

I already screen with background/credit checks. References. and all of that good stuff. But I'm hoping to better thin out the herd before they even get to that point. Too many times have people set up a showing and apply, only to have their credit come back terrible. or with major criminal history. or their income is well below the standard. Even though I have all the disqualifiers clearly noted in the listing. I get the feeling that some people don't even bother to read it thoroughly. They're just desperate to find a place.

Before I open the flood gates again, I want to employ a technique that I heard about on one of the BP podcasts. The guest mentioned that he has a "per-screening document" that he blasts out to everyone that expresses interest. When the documents come back for review, he has the opportunity to shake out some bad apples before they even step foot on the property.

I have created such a document and would like to hear some feedback. If you wouldn't mind having a look and tell me what you think.

https://1drv.ms/w/s!AkWFUmNFp-...

What would you add? what would your take away? or if you have any other tips for per-screening that you may have to share...

Thank you for taking the time to read and thanks in advance for any feedback!

@Yuki Jones

I assume you're looking to house-hack... Is there a more affordable area within driving distance to your job? Say you have to commute an hour to work instead of a 5 minute walk. Are you willing to sacrifice to make it happen?

Focus on your first property instead of worrying about the 10th.
Just take action. The next move will become clear the further along you go.

Cheers

@Bryce Renicker

Congrats on taking your first step.

First of all, no matter which loan product you use, you will need to live in your current home minimum of 12 month per FHA guidelines.
I was under the impression that you can get a 2-4 unit with a 5% Owner Occupied conventional. Please quote me on that, maybe someone else can clarify.
From my experience, if you are going the owner-occupied route... the lender is most likely going to grill you about your "intent to occupy" the new property. They will be looking for you to justify why the move would be an improvement. I.E. closer to work, more space (Growing family), better area etc.
If your current unit is 3bed 2 bath, it may be difficult to justify moving into a 4-plex with efficiency style apartments.

I managed to get away with this twice. Here's how it went down:
#1 duplex FHA 3.5% down. My unit was 2/1 (1200sqft) Refied into conventional after 1.5 years
#2 duplex FHA 3.5% down. My unit was 3/1 (1500sqft) Did Not refi.
#3 Single family home 3/2 (1400 sqft) with 5% conventional primary residence loan

Hope this helps.
cheers

@Milt Constantine

This would be a question for your CPA. (I am not one)
But i can tell you, most likely no, moving costs are a personal expense. However you should be able to write off things along the lines of cleanup & prep. Patch, paint, carpet clean, new binds, etc. additionally, If you have newer appliances, newer flooring, things that still have a valuable life expectancy, your CPA should be able to help you break them down to a reasonable deduction. Just make sure you can prove the original purchase. If you have no paper trail, then its probably not a good idea to claim it on your taxes. You don't want to get stuck in an audit with your pants down.

If your movers are billing for cleanup, have them break down the costs on an itemized invoice so that your business expenses are clearly defined.

Good luck!

@Tommy Barrow Congratulations on getting started!

Screen. Screen. Screen your tenants! Credit and background checks are a must! Don't fall for sob-stories. Too often it will come back to bite you in the @ss. Weed out the drama before it becomes your problem.

On your listing be sure to advertise a clear criteria for applicants and stick to it. Pets? What kind? How many? Size restrictions? Minimum credit score? Maximum # of occupants? Etc. This will siphon out the unqualified, as to not waste your time or theirs.

If you will be house-hacking, you have slightly more legal freedom to cherry-pick tenants, since you will be living next to them. But always keep in mind that someone could get a bug up their butt and cry discrimination. I've never had it happen, but you just have to be mindful of the possibility. Be respectful and honest but firm in all situations.

Cross your T's, dot your I's and enjoy the ride! Good luck!

I manage my properties through apartments. com (free to sign up). One of the tools they offer is a Rent Comp Report
(also free). There are some bonus services they do charge for. But I'm totally happy with their free stuff.

You would have to create an account and make a profile for the property that you're seeking comps on. Then, request a report... It will give you a breakdown of similar local -active & recently active- listings to compare where your listing falls. Its a beautifully organized PDF file. Send me a PM if you would like to see a sample (for free lol).

*cheers*