All Forum Posts by: Jonathan Rivette

@Nathan Gesner

@Kevin Sobilo

Thanks both for the reply - very helpful! Makes sense about just talking to them / asking them directly, and that's helpful to get more perspective on how you might approach reviewing credit. Much appreciated. 

Hi, 

I'm screening tenants for a single family home and the husband has no credit history but makes the bulk of the income. The wife has excellent credit (high 700s) and the adult son (also a contributing income earner) has excellent credit as well (mid 700s). 

Should I be concerned that the husband has no credit history (I'm wondering if this is indicative of past financial hardship/bankruptcy)? 

And as an overarching question - how should I apply my minimum standards for a household of multiple tenants? In this case their total household income (of the husband and adult son combined) does meet the requirement of being 3x the rent, but how should I apply requirements of good credit for this and other applications with multiple tenants in one application? 

@Richard F. Very good point. Thank you!

@Nathan Gesner those are very helpful points. Just sent you a connect & message!

@Zachary Ware that's a good shout - best to get a paper trail on that. Appreciate the response!

Hi, 

I have a house with a husband and wife and two grandparents. The husband is moving out (and unfortunately getting a divorce) while the remaining family members will stay and carry out the remainder of the lease. 

I have a lease amendment form that I can fill and have each tenant sign to take the husband off the lease. What considerations I should take moving forward? For example, effective dates - I understand their situation is getting ugly and the husband is not staying in the house currently. The remaining family members are asking for the lease amendment ASAP while the husband has asked for three more days to move out his belongings. I assume it's customary to have the effective date 30 days later for a courtesy period of transition, unless both parties agree with an immediate effective date(?). 

Any advice on how to go about this appropriately and things to account for? I want to do this in the right way without getting involved in the tenant's personal issues.

@Bryan Noth That's true, it varies by a person's goals. And that's good to get validation on the low COC return. Your comment on holding for the years to come is a good one, and I really like the idea on setting aside 5K of cash reserves up front. Thank you!

@Mike De Lota That's funny - I had not seen that thread so thanks for sending. Some of the posts on the other thread is also good confirmation/good insight for some of the things I was thinking. And thanks for the note on flips!

@Vik J. I know right lol 

@Andrew W. Thank you! Your reply is super helpful. That's nice getting some validation regarding the number ranges. Also the nuances you mentioned about Austin tax rate and LTV is good to know. And I'll definitely check out the FB group!

@Spencer Keane Good to know! 

Hi - I'm a new investor and I’m trying to figure out what a good, hypothetical, Buy & Hold deal is in Austin to get cashflow. I'm struggling to see what I could realistically buy that's profitable (even if I hustled and found a low-priced, off-market deal).

I'm looking at Single-Family Homes, 3 bed, 2 bath. I'm estimating:
$1600 - $1800 for rent
180K - 220K all-in (which would include some combination of the purchase price + the rehab)
20% Down Payment, 3.5% interest over 30 years

Expenses:
2.2% Property Taxes
$100-$140 monthly Building & Hazard Insurance
5% Vacancy
5% Maintenance/Repairs
10% Capital Expenditures
(Would love to account for a 10% property mgmt expense but that makes it even more unprofitable)

Key Question: What is your ideal Buy & Hold deal in Austin (realistically) and how are you flexing your numbers? 

Is there something I'm not accounting for (e.g. are you renting by the room to get more rent income, are there better price-to-rent ratios than what I've listed)? Are you primarily buying for appreciation, and foregoing cashflow as much as you can afford it because it's hard to come by? Is flipping or other RE strategies more common in Austin than Buy & Hold because cashflow is hard to find?

I've looked at a few Austin investor BP profiles with Buy & Hold investments listed, and I always have the same question - how is it getting cashflow?

Would appreciate any thoughts or insight.