All Forum Posts by: Josh Thomas

@Matt M. Thanks!

@Kathy Henley thank you!

Hey all,

I am planning to refi my current residence, move out, and rent via the Housing Choice Voucher program.

My house is currently a 4br, but we have another large room that meets all of HUD requirements to be considered a bedroom so want to qualify for 5br rate.

The room is in the entry hallway, and has a large opening (it's not a closed off room now, just a large opening from the hallway, if that makes sense)

My question- for this to be considered a bedroom, do I need to have the room framed in and a door added, or can I do something nice, but not permanent to section it off? (Like a nice heavyweight curtain on a track, temporary wall, etc)

TIA!

Thanks for the quick replies guys! Yeah, so the appraiser won't play ball, so trying to go through VA now.

Whats a bummer is the house is definitely a fair price, but the appraiser is using a comp from what is clearly a distressed seller situation. House sold for 70k below next lowest. And it was closed back in October.

Almost 100 homes sold in the subdivision this year and this guy goes back nearly 12mo to use the one on the same street with clearly something else going on outside the properties value itself. 

I guess we will see what the VA has to say!

Hey all,

Using my VA loan to buy a personal home. We have been under contract and appraisal just came back super low.

Going through the ROV process, but just found out an interesting bit. The house was under contract before, and the sellers told us "financing fell through due to covid job loss." 

Come to find out, that was complete BS. The deal fell through because the appraisal came in $19k under contract. 

Well, same just happened to me, and seller wants out to go conventional. And now I've spent $1k getting inspections and appraisals done, when this could have all been mitigated from the start. 

Do I have financial recourse (or other recourse) here? 

TIA!

Something else to consider that I didn't mention before- 3 of the 4 have lived together previously. and the previous landlord said they were great tenants. 

Im beginning to feel the biggest issue is income, which is $11.5k total, on a $2,400/mo rent and that other than that, there is no issue.

Awesome everyone. Thank you so much. It is highly likely that I will need to rent to them anyways. As @Mary Aviles mentioned, I am at a point to where we have been vacant for almost 3mo, and I am paying for a place in dallas and denver. The house is fantastic, so its likely due to the time of year we have been on the market, but that doesn't change the mortgage :)

We are giving it through the weekend to see if we get any more bites before making a decision. 

If you ABSOLUTELY had to rent to these guys/gals, what would be your terms?

Would you guys change your mind if a parent were to join in as a secondary guarantor?

Wow guys thanks for all of the great feedback so quickly. Let me try to answer these questions for everyone.

@Jason D. Not sure, think just dating. I had the same feeling, but felt I couldn't judge that without meeting them.

@Terrell Garren This is my biggest fear, I can't imagine what could have happened if I was 23 living in this house.. haha!

@Sean Lambert No, but I will have to ask. he said they seemed nice, well-mannered, and clean. Yes, it is. 3 x 1.5. 1700 SqFt.

@Bill S. The income is another big concern for me. If the couple decides to take the hit and leave town, the other two will be at like 60% gross income going to rent, which is not really doable. It is 1700 SqFt, and 3 x 1.5

Thank you everyone else for your thoughtful answers. This post has only been live an hour or so and it seems the overwhelming majority is a "No" or "Probably No"

Thanks guys!

Hello All,

I just received applications for our first tenants ever. They have passed all of our screens (criminal, credit, etc) and in general, I feel good about it. But there are some quirks:

• It is 4 people total. A couple, plus two others that are not related. I think they may all be friends from "back home" This is in Denver, btw.

• They are young. 23, 23, 24, 24 y/o and working entry level jobs. A few of them are college grads, and a couple may have dropped out. Not 100% sure. Collectively, I think they cover 4x-4.5x rent amount. We are trying to get another guarantor, like a parent, especially if they are still in school.

• All have Good+ Credit but one, who is still currently behind on surprise med bills in collections. He wrote quite an authentic letter, and has recently worked out a payment plan with them, but was still late Dec/Jan bills. Seems like a good person that had some bad luck. I've actually been in the exact situation before.

My PM likes them and without having met them myself, I feel like it should be ok. We plan to rent to the under one lease, so if one goes down, they are all still responsible. That said they are young, and our house was completely renovated 2y ago. So part of me is terrified they will turn out bad and f-up my place. Always a risk though I suppose!

Would you lease to them? If you did, are there any caveats? Any tips, or specific legal clauses, or lease structures you recommend to keep my best interest protected?

Thanks in advance all! Cheers!