All Forum Posts by: John K.

For buy and hold rentals doesn't give you that much of an advantage.  In Wisconsin you have to disclose you are a licensed realtor on offers, and many times I feel sellers can think something is fishy if realtors are trying to buy their property.  I feel you get the best deals for buy and hold by not being a realtor.

welcome!

It's a numbers and operational organizational game.  You have to be 100% fully committed and not do land lording as a "hobby business" - but as a "business business" - it no hobby as you are dealing with peoples housing.  I see no problem borrowing 140-160k to cash flow $600-$900/month per property.  If the cash flow was only $100, $200 even $300 it would not be worth it.  One furnace call for $3000 could kill a years profits.  But doing $700/month provides a 30-35% annual return on investment (down payment) even with some minor repairs.  At 35%, with the rule of 72 you are doubling your invested capital pretty fast.  Slow stable controlled growth of a portfolio lowers the risk as a broken furnace is spread across a greater cash flow base.  

With debt coverage on a property at 1.8 - 2.2 range, even if the economy takes a huge downturn you can discount rents by 30-40% and still be cash flow positive.  People who lose are the ones who don't know the market, try to buy a property because they saw a flipping show on TV and it looked fun - and have no understanding of landlord/tenant laws and no interest in growing their education around land-lording.

I'd probably suggest searching the web generally speaking, you are going to struggle with a non-us resident using the standard systems to search.  Could search local court records.

Looking for other Madison investors to network with!  

I would be interested in any good tenant application CRM systems as well.

I am able to look up evictions on a state website, should I just format a denial letter simple like:

Dear Bob,

Thank you for your recent rental application. Based on provided information, we find that we are unable to accept your application for rental at this time due to a prior eviction.

Sincerely,

Joe Landlord

Or should I use the template similar to that above that @Michael Modesto provided?

@Jeff Goedeker A rental P&L statement would be pretty simple to create.  I'd suggest just creating one on your own - with excel when you create the template it's both the way you want it, and then also you fully understand it.  I've seen a lot of bad excel templates online...

I've seen tons of posts on BP about online applications, but all are more about actually doing the credit check and charge per tenant applicant.  Are there any services that just allow users to complete an online application and then for the landlord to easily download it all to go through their process the old fashion way?  I don't want to collect any money from the tenant for the application since its a mess with returning it to them if we don't accept them.  

Probably 20-25% down, and you would want to look at a commercial loan to get started.  It would be difficult to get that many separate residential loans all at once.