All Forum Posts by: Matthew Walker

Hey @Chris Mills ,

Any chance you can name them here so that we can all do a little digging based off of recommendations?

I would say RUN, not walk away from this potential tenant. A few red flags in the small amount of detail:

#1 - showing up in a car with "all his stuff" - I know that people hit the skids and things get away from them, but someone wanting to make an impression would have handled this a little differently. 

#2 - leading with not paying rent - he's admitted he's skipped out on rent up front. Again, everyone has a story (and I've done the same a few times), but that's not something I'd open up with a potential landlord as my initial introduction.

#3 - expecting to move in right away - having unrealistic expectations about how things work. This isn't like putting a man on the moon, this is a fundamental skill. Maybe he just arrived from Mars and has absolutely no idea how things work here on Earth. But ... he does know rent is due and he didn't pay. 

#4 - As far as asking about the employer questions, I'd just verify that he's employed for starters. Not sure what relevance being an engineering major is. It's not a proxy for intelligence. All you know is that he has said he's gone to school. 

Could go on, but I recommend staying far away from this prospect and seeing who else pops up. Put him on a waiting list and contact in a few days if you really are feeling charitable. 

@John Teachout

Great questions John! 

Utilities: We do a split utility agreement (1/3 paid by the tenants). This percentage is in our rental agreement assuming we (my family and I) consume at a minimum of 2/3 the energy/water. To help allow the tenants feel more at ease with this, we offer the availability to see the bill so they know we are not over charging. Everyone, thus far, has declined as this offer puts them at ease

Plumbing: We did raise the bathroom area slightly (~14 inches) to allow for toilet/sink/shower plumbing. I've attached a photo of that area as well as the kitchenette for ideas/understanding. 

Thank you for your questions and interest! Please let me know if there is anything else I can answer for you. 

-Matt

Investment Info:

Single-family residence buy & hold investment in San Jose.

Purchase price: $30,000
Cash invested: $30,000

Garage turned studio:

Living area
Kitchenette
Full bath
Two closets
Access to main house laundry (twice a week) via a shared access point.

This space is a small (325 sqft) yet perfectly quaint studio that fits the needs of a young professional or couple.

What made you interested in investing in this type of deal?

An opportunity to have instant cashflow arose and it couldn't be passed up.

How did you finance this deal?

All cash.

How did you add value to the deal?

Resources already available to us were used to reduce labor costs on the conversion of the garage space into a 325 sqft studio. Seeking and building relationships with personnel within the construction community can significantly reduce your up front costs for a project or rehab such as this.

Investment Info:

Single-family residence buy & hold investment in El Dorado Hills.

Purchase price: $637,000
Cash invested: $128,000

This is a lovely single-family 4 bed, 3.5 bath, 3085 sqft home located within a fairly new area of El Dorado Hills, Ca. This area is exploding with new homes and the market is thriving. Not to mention the outstanding school ratings (nearly incomparable to the national average for public schooling).

What made you interested in investing in this type of deal?

This particular deal is a little different from your normal investment as it's intent is to be rented until my family and I are ready to fill it's walls with our own photos and it's floors with my son's never ending accumulation of toys.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $637,000
Cash invested: $128,000

This is a lovely single-family 4 bed, 3.5 bath, 3085 sqft home located within a fairly new area of El Dorado Hills. This area is exploding with new homes and the market is thriving. Not to mention the outstanding school ratings (nearly incomparable to the national average for public schooling)

What made you interested in investing in this type of deal?

This particular deal is a little different from your normal investment as it's intent is to be rented until my family and I are ready to fill it's walls with our own photos and it's floors with my sons never ending accumulation of toys.