All Forum Posts by: Kenneth Mooney

@Bjorn Ahlblad somewhat. It depends on how large of an operation you run as well and prospective tenant flow. However, I totally agree, you don’t want to stray too much from the norm for your area.

@Andrew Merritt it seems like a better long term plan to me. No more land is going to be made and many communities across the US are already adjusting their zoning ordinances regarding multi family housing and construction.

@David Clark you are definitely not too late. I would definitely recommend looking into some other, less expensive, areas of the United States. There are many that you can get into your first rental property for a VERY low entry price. I know of multiple markets throughout the US that you can buy for $30,000 - $40,000 and get a perfectly good house. Don't hesitate to reach out for help! I love talking RE. 

@Bjorn Ahlblad if we tried to collect security deposit AND two months rent up front we would never rent a house I believe. We do security deposit equal to one months rent and prorated rent for the first month (second month is full month to get resident on a 1st of the month payment schedule). Majority of our properties are C class with some D class and some B and A class. 80% C class overall. 

@Andrew Merritt build the multifamily and do more than 4 units on each lot if possible. If you could combine the lots into one giant lot and build more than five units I would do that. When you go to refinance for over 4 units (or get a commercial loan on it) you are going to value the property on its performance instead of getting an appraisal based on surrounding comparable sales. You will have more control over the value and the value will almost be completely dependent on the income vs. expenses. 

@Eric Roloson I would do as follows: provide proof of funds, no due diligence period, and 20% of purchase price as earnest money. This has worked for me personally on off market properties where I am speaking directly to the seller. It shows the seller just how serious you are. Their viewpoint becomes "Well, I know its $20,000 off from where I wanted but I know at least I would have the money in 10 days" instead of "Well, its $20,000 off from what I want and I don't even know if the guy has the money to close."

@Michael J.

I am not sure on NJ but GA you have specific requirements and restrictions about which felonies you can and can't hold against someone on the application. We actually use 3.5x rent for income, 570-600 credit score is a double deposit, 600 and above is a single deposit. Security deposit is 1 months rent. We also do positive landlord references and verifiable income (must be taxed and must be able to provide proof). 

It is likely the security deposit that is hurting you. 1 month rent as security deposit is standard down here, and we do 2x rent security deposit if its 570-600. Hope that helps!

@Abhijit Roy choudhury not sure if laws in Illinois. However, first mistake was letting them move in. If we were in this situation in GA we would evict them if we had a signed lease.

@Robert Duffer Rob, which ones have the most updated capital expenditure items?! Go with those! Just make sure you don’t have to buy something where you have to replace the roof, windows, HVAC, plumbing lines, and electrical in the next 5 years! You’ll never make money!

@Anthony Vangilder Anthony, there are realtors and companies out there who will handle the renovation/turn for you AND make recommendations based off of what they are seeing in the market. Find that company and you’ll be golden.