All Forum Posts by: Jim Stardust

I'm not going to debate the need of a PM and their advice, but I agree with George, that this should be solely your decision and whether the tenant met your pre-set criteria.

Now, did you verify the income and the savings with the bank? Does she have a credit score in the 600's or higher? What was the issue with the previous tenant? Where did she work before becoming a full-time nurse to her grandfather? Reason I'm asking is if the grandfather is getting up there in years and if he passes, will she have the ability to land another job (it should be easy for a nurse, in Florida nonetheless, but you never know). If there are issues with the license, she might not be able to do so. Have you done a criminal/background check? I have heard of nurses who became drug-abusers and have their licenses suspended and then resorted to providing healthcare through venues that would not require a license, I'm not saying that's the case here, but you should be aware that the problem exists. What are the potential "red flags" you suspect?

I agree that there's no such thing as a perfect tenant, and if all checks out, it sounds like you should have a good tenant here (I assume you accept pets?). I would still contact the previous landlord and see if the issue was really resolved to his/her satisfaction or whether there were other problems. You deserve to nitpick, it's your property and your investment, actually that's a very good sign that you may be successful going forward.

No, that's not a fair percentage. You can offer him a lump sum or a smaller percentage based on executed deals with the investor. Explain what you put into the equation and if he still thinks 50% is a reasonable fee for his referral, he/she really is not your "friend".

Good luck!

The question I have is: Are they telling everyone else around them the same things or are they only complaining to you? If it's just you, then it might be that they're either seeking your help (they might see you doing well financially) or they might actually be trying in a roundabout way to ask for help or guidance, since again, they see you handling your finances well (I'm assuming you are).

I've learned to avoid negative people who do nothing to fix their situation and just enjoy complaining and venting without seeking a solution. I nod my head and move on...

However, if you think they're seeking you out, a simple "would you be interested in my opinion?" might go a long way to help a true friend see the light and get on the right track.

Well, did you have a set criteria (written) before you started taking applications, did they both meet it? Did you already verify their employment, credit, income, past rental history, etc.?

What shape is the house in and will it take abuse from 4 teenagers? How old are the teenagers (when they will be moving out)? Boys or girls (boys tend to be rougher on property than girls)? How does the single mother's rental history?

As far as the grad students, what happens if one of them finds another position and moves out? How far away from graduating and do they have intentions of moving to another city/state or do they plan to stick with their current employer after they're done? Nitpicking can actually be a good sign, you can protect yourself by having some addenda to your lease but it tells you they may actually care about the property and its condition. It's obvious that they view your property as a fall back place and they're asking about backing out in case they find something better/cheaper. I'm curious why two grad students need an SFR instead of an apartment or a condo?

The single mother will probably stay longer, you can bank on getting your rent on time, but the property will probably take some abuse from having teenagers. The two grad students will probably not stay as long, may break the lease if one of them loses a job or lands something else, but they'll probably take a better care of the property. It may be beneficial to lower the price a bit more and see if you can attract few more applicants...

Good luck!

J Scott, keep us updated on what happens with your recent offer, whether it gets accepted, rejected, and even if you don't hear back? I'm trying to figure out how HUD establishes a minimum bid and what strategies investors/buyers employ to win some of these auctions? I was told by an agent that the accepted bid on a property I expressed interest in, was actually higher than the list price and she said that happens pretty often!?! I don't know if she's misinformed or just didn't want to bother with this particular transaction.

I would contact your insurance agent/company and explain your situation, you may be able to keep/transfer your current policy into a rental investment insurance policy and then add an umbrella on top.

Hey Paul, Semper Fidelis! :D

I have military experience and I'll try to answer your questions:

1. I don't understand the comparison between VA and USAA? USAA is a financial services company and I've been a member for 19 years, they have excellent customer service and their insurance products are superb, however, they won't give you any distinct advantage when it comes to mortgages. In my experience, USAA mortgage products are not very competitive. Now, the VA loan guarantee is the best kept secret available to Veterans and AD servicemembers. My advice is to take full advantage of it, use the 100% leverage to get started into REI. Remember, there's a 2.15% funding fee but that can be rolled into the loan itself.

I would use the VA guarantee to buy a multi-family property and get started, live in one of the units and rent the other/rest. There are some restrictions and requirements, but there's no better way to get started that is available to anyone in a similar position, especially these days.

2. I wouldn't be worried about moving and relocating, I know European people buying and running properties in Florida. In this digital age, the issue of geographical location is becoming less and less important to running a successful investment or rental business.

3. No major advice about Hotels as I have little experience, but you got to start small as others say. Remember, your competition is going to be very fierce and much larger. It's good to have big goals though, good luck with your endeavors. Pay attention to your schooling right now, having an accounting degree and a financial certification is going to open more doors for you than many of us, I would look at getting into a career that can help you with your long term real-estate dreams!

You want an oceanfront for under $200K in an area that can be considered reliably warm? I don't think you'll find it, unless you get very lucky. Hire a realtor and have them do the leg work, you might find something. I think you should consider the Ft. Myers/Cape Coral/Naples area and think of buying a house instead of a condo, you can probably get a house with a pool for that price and you can probably get it to cashflow. As far as appreciation, I don't buy that part about oceanfront holding their value better, plus you're going to get killed on the insurance. Also, if you're flexible on the price point, check out Sanibel and Captiva Island area, oceanfront premium properties, rented almost 40 wk/year.

How are the rest of the windows structurally (you mentioned the few that need repairs)? Will they pass inspection? Would they detract from the rest of the improvements? If you're pouring in a lot of improvements into a 400K house, having less than optimal windows might take away from the new flooring or would be the only sore spot in an otherwise spotless bathroom, you get the picture...

Having said that, for a 60 year old house, the windows are part of the character of the home, I would try to keep them, do the sanding, caulking, and painting yourself, it shouldn't be a tough job. Putting new windows come with its own issues, it's not just about cost, it's about how they'll flow and whether you're going to get an installer who knows what they're doing, they're much more important that the actual windows themselves. I've seen those $189 windows guys put some windows that actually made the house look worse because they've done such a shoddy job.

If you manage to get her arrested, make sure you make a lot of noise and get all the neighbors out to see what the commotion is all about!!!