All Forum Posts by: Joseph Walsh

Odd, this exclusivity contract sounds more like a realtor that is used to selling houses.  My current house, my wife and I had to look at 40+ houses over the course of a year, and we finally pulled the trigger.  Our buyers agent never once asked for that kind of commitment.  We did sign a contract prior to making offers (and there were quite a few we missed on) authorizing her to act on our behalf, but it was never an exclusivity contract.  Personally, I'd find another.  However, We weren't first time buyers, and she might just trying to be sure you aren't just "kicking tires" and are committed.  Are you pre-approved for a loan?  While I get their perspective, I don't like it.  If I am calling her regularly for houses, I clearly am committed to her services.  We also sent her other buyers and sellers, and continue to do so years later.  What if she goes AWOL for some reason(vacation, sick, busy with wealthier buyers...etc.) and you miss on a house?   I would be wary unless there is a good exit clause.   Again, sounds like you found a good agent, but trust goes both ways.

 I just learned to send them one warning letter, then next time, an eviction notice after 5 days.  After that, the late payments stopped.

Seems overly complicated, as a result, sounds like more work.  I rent month to month in one locale due to the legal benefits.  Lease is nearly impossible to evict bad tenants and they know how to work the system.  Month-month is more protections for me.  I have had one tenant for 5 years.  Although I have never raised the rent, it's already near market.  Two things I would of done differently if i were you: Full months deposit, no pets.  If you do allow pets, require the renters insurance to explicitly cover the dog, in writing.  Although, in your specific case I would of just done no pets, since they are sharing your personal property. If you want to incentivize a 1 year+ stay, you could always add a "after the first full year" tenant will receive $100 off the next months rent, or something.  I don't like a rent hike after 6 months, seems like it should be at most annually or at turnover.  It sounds like you have a good tenant.  Assuming they aren't trashing the place/appliances, might not want to try and squeeze every dollar out of them.  rent and forget is nice to have.

Emotional Support animals don't have the same protections as Service Animals for the disabled (they can't go into grocery stores, for example, although most people don't distinguish between the two).  Also, MANY people claim their animal is an ESA, when it is not, which is why the airlines are starting to ban them, or require documentation.  I would, at a minimum, request documentation of the ESA certification. 

That said, I am curios if one could require the tenant to carry additional liability insurance on the animal, or documented completion of obedience training.  Hopefully, you can find another reason to deny the tenant.  You're basically set up for a lawsuit if the animal bites someone.

In my SFH rental, I made it the responsibility of the tenant. I'm buffered from tickets if he doesn't do it by the property management company. As I have gotten older, and busier, I don't have the time or energy for that crap.

Pass.  The key here, 2 felonies...one in 94, but yet another one just a few years back.  That and none of the "he's reformed" bs passes muster, since it is the WIFE fessing up and asking.  either way, there is a  higher than usual risk of  your renters losing part of their incomes stream, impacting your ability to collect rent, and that's ignoring any other reservations you might have.  You clearly already have them, since you posted the question.

I'm a relative newb, but I have looked at 2 types of property recently.  (yesterday, actually).  One is in an A property, that is in an area out appreciating the nearby areas.  4-5% a year the past 3, and is projected the same the next few.  It's a by owner, and I am looking into seller financing.  This one I would be content with $0 a month if I get it with built in equity.  since I am all but guaranteed not to lose money if I have to exit soon, but it's a long term hold option with good returns, and would have a few hundred $ cash flow as a bonus.  The other's are student rentals, which are more work, and much lower value.  I am only looking at the ones that cash flow +$400 a month.  In both cases I factor in property management, as a cost, even though the "A" property I would likely self manage.  evaluate it if you were to have property management either way. don't fudge the numbers to "make it work".  It either does, or doesn't.  

the short point of this post: "depends on the property, and the goal of the investment"

I never give cash up front.  if it's a big job, use a draw schedule that pays them for demo/prep.  that is labor only work.  they get a decent draw of say 20-30%, and you get something for your money if they walk, or get busy and slow play your job.  They can use that cash to get the first set of materials they need for rough, and pay the demo laborers.  After rough and they pass rough inspections, another decent draw should cover finish materials. (note, they now have skin in the game, since THEY have to pay the trades, or finish the job timely.)  After finish work, a 3rd draw covers all but the last 10-20% so they can pay the trades/recover what they paid the trades, and they get the final draw after final inspections are ALL PASSED (and get THEIR profit/pay)  If it's a small job, get another contractor, they should be able to cover it.  50% up front on a big job to me screams: "I am going to use a chunk of the money to complete my previous job!", or just rip you off.  There are exceptions of course, specialty materials with long lead times, other "unique" job items, but those I would purchase directly and have delivered to the site, possibly in coordination with your contractor.  Then again, I'm small time, not sure your relationship with your GC.

have you started with the resources available here on BP?  

I'd start with the REI tools: particularly, this one.

Then lurk on the forums, and listen to the pod casts.  It can really help you possibly narrow down where you want to try and focus to start.  Being only 19, I would think house-hacking might be a starting point.  But only you can decide what makes sense.