All Forum Posts by: Kenneth Garrett

@Paolo Patacsil

Here are some quick thoughts: 

Are they under a 12 month lease?

Is there a security deposit?

Are they paying rent on time?

Ask for a rent roll of the building over the last 3-5 years?

Are they paying rent at all?

A copy of the lease?

Condition of the building?  Get a home inspection.

If you get a chance talk to the tenant.  Do they like the building?  Have you had any problems with your unit?  You will be surprised what they tell you.  I always ask on a walk thru.

@Hong Zhu

I have had guests with no reviews.  I usually ask the purpose of renting my unit.  I ask for what the ages are and relationships.  I have had some respond to friends who are all 21 and 22.  I have a requirement of 25.  I’m mostly looking for family guests and not party guests.  So far haven’t run into any major issues.

@Daniel Lang

Everything is state driven, but in general the leases are turned over to the new owner.  An estoppel certificate is given to the buyer at closing that is a legal document that states you are the new owner.  You can use this when you talk or notify tenants of the changes of ownership.  You should request for a rent roll as part of your due diligence and a copy of all leases.  Make sure tenants know where rent payments need to go.  That is critical.  I always had the existing tenants fill out an application so I have emergency information and other important info.  At closing, make sure rent payments credited to you and security deposits.  

As @Patrick Menefee stated, security deposits should be held in a separate account.  Again, check with your states rules.  Could be county or city rules as well.  It depends.

The bank accounts can be separate for each property.  I started that way, but eventually it became to many accounts.  I now use one account and it is controlled through my accountant and quickbooks.

As far as books; Managing rental properties by Brandon, cash flow quadrant by Richard Kiyosaki, profit first by Mike Michalowicz.

Best of Luck.

@Jennifer Cooper

That might be difficult. First step is to check the zoning district of the property. Once you understand which district it is, you can then look at the permitted uses and or Special Uses. This is all in the Zoning Code. Many subdivisions have a PUD Planned Unit Development. If it's in a PUD then those requirements are specific to that development. Most residential districts allow if course single family homes and some allow duplexes, townhomes, etc. You mentioned multifamily so not sure what you meant by that; apartments, 4 unit, 2 unit, etc. I would call the municipality to find out, but if your looking at apartments, I think you will have a hard time, but nothing is impossible.

@Javier Carrizosa

I've done plenty of DSCR loans. The process is actually much easier. You don't have to worry about your personal income so much as it's based on the cash flow of the property. As others have said you can open an LLC and purchase the property and finance it. No time requirement in the LLC. I always used small local lenders. Not sure in this crazy banking time whether there are additional restrictions. You may need to shop around if you get push back.

I started in my 50's acquired many properties and was able to retire early. Mostly BRRRRR deals, some flips, student housing and STR. I think age is irrelevant. Of course, I wish I had started earlier, but it worked out in the long run. I'm always looking for my next project, but with this economy I'm patiently waiting for the right project.

@Bruce Woodruff

Here on the Beach in the Florida Panhandle started somewhat slow, but now it’s pretty much a typical beach season. 

@Connor O'Brien

Are you finishing the basement otherwise it doesn’t matter.  The only time you need to change the egress window size is if you finish the basement or add a bedroom.  Dm me if you need an architect.

@Devin Cook

Aside from the condition of the building, I see a number of things that would concern me.  When you say “not so good part of town” are you saying D neighborhoods.  Bad neighborhoods bring bad tenants.  You might find a good tenant, but if the area isn’t desirable, then it definitely limits your tenant pool.  Do you feel safe going to the property at any time of day, if not, I would not buy it. The owner said it’s been fully occupied for three years.  Does that mean paying tenants or is it just occupied?  Find out if they are paying every week.  Every week is an odd way to collect rent in my opinion.  Not sure if that means you have different tenants coming and going all the time.  Sounds like a pm nightmare  and expensive.  I would ask for a rent roll and proof of payments.

Best of Luck.

@Robert Saulnier

Hi Robert, here is the definition out of the International Property Maintenance Code.

BEDROOM. Any room or space used or intended to be used
for sleeping purposes in either a dwelling or sleeping unit.

Every living room shall contain not less than 120 square feet (11.2 m2) and every bedroom shall contain not less than 70 square feet (6.5 m2) and every bedroom occupied by more than one person shall contain not less than 50 square feet (4.6 m2) of floor area for each occupant thereof.

Not sure why the inspector is saying there is no definition.  There is not a bedroom definition in the International Residential Code, I am assuming that is where he looked.