All Forum Posts by: Levi Perl

@Jill F. I especially appreciate your and others’ assurance around this being the worst time of the year to find a tenant and not to sweat the slow movement too much.
I’m curious if anyone would recommend to not post a listing at this time of the year, as it hurts the listing by sitting and you lose a lot of the “New Listing!” value because you have much less eyes seeing it if posted in these few weeks.

Ok, I see its normal to ask those who came to showings why they didn't apply. I appreciate it.

I have considered a PM. But they take first months rent and then 10% every month on top of that! I think I can do a good enough job of listing it. See Listing Link here.

I am attributing a lot of the "slowness" to the season. 

@Trent Davis, what would that help? Whatever the reason, it has nothing to do with me, or anything I can influence. Anyone who actually saw the house liked the house, or the house didn’t have everything they needed. For the one person who liked the house and said they’d apply, but did not, I would assume either they will apply, or they never actually qualified form the start.

Thanks Nathan. I want them to notify me if they will be absent for an extended period of time so that the property is not seen as abandoned by anyone looking to do a crime, and so that I could check on it. For example if they leave in the winter, I need to ensure the pipes don’t freeze.
Is there any amount of days (1, 3, 7?) a tenant wants to be away that you require them to notify you of their departure?

I think I have a pretty standard screening criteria. I ask they first confirm the below before showing. Here it is 

Applicants must:

1. Show gross monthly income equal to 3 times of rent (between 1 or more adults).

2. Be currently employed and be able to provide 3 most recent months of past paystubs or other income documentation.

3. Show a credit score of 600 or more (negotiable).

4. Have a decent rental history, including no past evictions.

5. Have a clean criminal history (excludes minor misdemeanors and traffic violations).

6. A showing is required as part of the application.

7. Documents regarding your pet(s), if any: Photo; vaccine records; proof of license with Animal Services; contact info of vet; renters insurance showing pet coverage.

8. Pet deposit is $250. Pet rent is $50/month per pet.

How many showings a week is considered good? Meaning that the number of showings show you have it priced well? I have seen many say “3-5 showings a week is good”. However, does that include people who wouldn’t qualify? I get many requests for showings, but when I ask them to first confirm they qualify (3X income, etc.) they don’t respond.

Listed 22 days. Have done 2 showings, with one more scheduled for tomorrow. Got 5 applications. Only one applicant qualified but they said in the end the house didn’t have everything they needed. The 2nd person really liked the house and even mentioned how nice the rehab was, relative to comparables they have seen. They made it like they were ready to apply, but did not apply yet. That showing was yesterday  

Would love if you give feedback on actual listing. Link here.

Thanks!

Have a class C property. Applicant shows a DUI class B misdemeanor from 2021 - “driving while intoxicated”. Shows court costs $420 and fines of $500.

Says they have much more income then needed to qualify. Credit score 583; shows they pay 62% of the time. Total debt is $2,433. Everything else checks out.

How would you approach this?

Thanks!

Hi,

Curious if anyone has what to say in terms of how to calculate which one is more worth it: to cash out refi on a Long term rental now at 70% LTV, and walk away with X amount of positive cash AFTER paying all debt, (X is a positive number and significant amount for me), which will allow me to potential get another long term rental and grow portfolio faster, or wait 4 months and cash out 80% LTV, giving me DOUBLE than X. I don't have a deal in the works if I DO cash out NOW, but I can start to work on one. Meanwhile, waiting 4 months will cost me $3,500 in interest, - though less than a second DSCR - and will prevent me from making another purchase and rehab, which I potentially can do all in 4 months. Of course, waiting is safer. But is it more worth it? Am I being dumb by NOT waiting, because it's unlikely - I assume - my next deal will be as profitable (I got very lucky on this one!)

How do I weigh all the pros and cons?

Thanks!

I inherited tenants in March 2024, who's lease is ending in October 2024. They are paying $825/month. It's a mediocre but not killer deal for me to not renew lease, rehab and rent to new tenants, as I'll make only 8% COC. The market rents on other hand are $1150 as is (this per the appraisal). If I rented it for that amount now, that would be great (12% COC). But is it reasonable to expect the tenants to accept that increase? What are the chances they would actually agree to that? And what is the amount of increase that is reasonable in this situation that a tenant would be ready to swallow?

In short, if it is unrealistic they would ever accept $1150, I would like to know beforehand, as I don’t want to be shooting my sled in the foot. Anyone with experience in this?

thanks