All Forum Posts by: Lynn McGeein

@Stewart J berry tenants may not regularly seal granite, wipe up dark liquids fast enough or use trivets and cutting boards — think raw chicken soaking into your counters — so we’re fine with laminate countertops, hygienic and cheaper to repair/replace if damage occurs. We cut our own with a builder’s supply purchase 8 years ago, still looks like new and it only cost like $150 plus the saw blade (small galley style kitchen).

@Kayla Palmieri read the contract or have your buyer’s agent explain thoroughly as some inspection contingencies require a licensed home inspector actually inspect it, and some even require approx cost of repairs and if seller agrees to that amount then you cannot exit for inspection contingency. In my area, an inspection contingency means as long as you have a licensed inspector actually inspect the property, you can then terminate just by sending a release/termination, even if nothing major found. It’s a problem as some will use that time to keep shopping and exit if they find a better deal.

@James McGovern I use specific sign riders stating Open This Saturday 1-3PM and directional signs if allowed in area. Neighbors can then let friends, family etc know about it even if they don’t usually look where mls distributes the info. Motivated buyers driving the area usually see the open sign and try to get in before the Open.

When we were looking for property management, we had to read through the fine print on MANY management agreements as they all sounded great when speaking with them, but most actual management contracts were filled with stupid additional charges.  A one-month placement fee is too high, and definitely too high for a renewal.  In NC, we went with a company who does not charge any placement fees, just an approx. $200 yearly admin fee and 8% of rents.  They focus on finding long-term tenants, and it's a win-win as less turnover is less expense for us and less work for them.  It took a while to find a good one, but worth the research.  Don't sign a management agreement unless you read through it carefully.     

@Richie Linnon if the unit needs renovation, which is likely with someone there that long, perhaps plan to give tenant 3-6 months’ notice as it will possibly be difficult and stressful for them to find something in their budget and they may need time to apply for and be accepted into assistance programs.

 Yes, I have other "typical qualifications" that applicants must meet, just the 3x income issue is problematic.  I also have updated my application with a section where they can address variances to my "typical qualifications," where they can explain things like an old criminal background record (still states absolutely no evictions) or a divorce that wrecked their credit score.  Haven't been legally challenged on it yet, so no idea how legit it is, but seems to have worked well. I've approved one with a medical judgment, so far, so good, and I've allowed a co-signer where a divorce wrecked their credit.  Otherwise, haven't had to stray from my requirements.  

@Dan McGrew so in Virginia, for example, source of funds protection means that if they have a voucher or funds come from something else besides employment, you can’t say 3x income for whole amount. More states are changing their laws to accommodate assistance programs. We used to just say we no longer participate in Section 8 program but new laws eliminate that option.

@Gladys Villa we chose to buy a fixer-upper in a great neighborhood, live in it for 2 years while renovating, sell with the tax exemption (now up to $500,000 profit tax free), then repeat until our kids needed more stability for schools. Then we stayed in our fixer-upper, used HELOC to buy investment property cash, then get a cash-out mortgage and pay back HELOC once rented out with rental history to qualify, and do it again. I'm not the type to live in a multi-family where other units would know I'm the landlord, so this worked out best for us. We built up a lot of equity buying the ugliest houses in great neighborhoods.

Our area sees a lot of VA home loans, so we're used to them. It used to be that VA appraisals were always tougher, requiring stupid repairs, low appraised value, took weeks, etc., but that has not been the case recently. I think a VA buyer can now pay for termite inspection and even some repair if needed if the termite inspection is required. I believe they also just came out recently with a statement that VA buyers are allowed to pay their own reasonable buyer's agent fees, although seller can still pay them if negotiated. So the costs to sellers is similar to other loan products.

@Franc B. Read your insurance policy before making a claim as I think most do not cover long-term damage especially if it could be easily found and mitigated. Also read your lease as if tenant could easily see damage being done and did not report it, they may be liable, not sure how that works in court if it comes to it, especially if you didn’t perform inspections that would have found it.