All Forum Posts by: Michael J.

Understood Facts: As demand for affordable housing grows, mobile homes present an attractive entry point due to lower initial investment and high potential returns. With quicker transactions and less market saturation than traditional real estate, this niche offers unique growth opportunities. Creative financing options such as seller financing can also attract more buyers.

Question 1: Should I, as new investor, consider diving into mobile home wholesaling for a promising start in real estate?

Question 2: How do go about closing deals once I find them?  

Question 3: Do I need to know 100% of everything or 75% and figure things out as I work the deal? My fear is failure.

Good morning Bigger Pockets family,
I wanted to ask a question on what should I do with this one specific tenant. This tenant is a mother of 4 that works 2.5 jobs, home schools, and takes care of her family by herself.  During the COVID I knew things were taking a toll on her because I noted odd things broken in the house when performing my quarterly inspections, such as, broken medicine cabinet mirrors, master bedroom door cracked on the side, and a cracked vanity sink. (How in the heck do you do that???) I figured it was her acting out due to stress from being overwhelmed with everything which she communicated on different occasions.  In most cases she paid someone to come out to make the repairs which is in violation of the agreement or I charged her for the repairs/replacements which she paid. She's even replaced their kitchen's double oven with a better double oven without consent which she is currently paying the replacement costs.  The last instance was that she recently told me that she had switched her renter's insurance which I thought was odd because I was not notified as the "party of interest."  When I called her former insurance company I realized that she didn't give them my correct email address and when I followed up with her new insurer the agent told me I was just added as the "party of interest" yesterday, 7.2.2021. I am having a hard time trying to determine my next steps with this tenant because on one hand if she breaks something she pays for proper repairs or replacement, pays on time, responsive to requests, and very easy to work with. I guess my problem is the lack of communication and transparency.  In typing this post I believe I have my answer but I still want to get the group's thoughts? 

Thank you everyone for all your help.  From your responses I will be doing the following.

1. Lowering the amount of the security deposit to 1 month.

2. If the tenant fits my requirement but changes their mind when I presented them with the timing of the security deposit and 1st month's rent.  I will ask questions about the deposit and rent compared to others. (Plus I will start looking at what the competitors in my area are doing.)

3. Stagger the timing of when funds are due for security deposit and 1st month's rent. Hopefully by providing a small window between the signing of the lease and first month's rent it will hopefully reduce the financial strain. 

- At the lease signing they will be required to provide security deposit. 

- Shortly after when they are ready to move-in they will be required to pay the first month's rent before receiving keys. 

I am so grateful for all your insights and doable action items.  

Thank you once again.

Mike Jones

Good morning Bigger Pockets community. 

I wanted to get your perspectives about my criteria's I am currently using trying to rent out a 3 bed row home in a "C" (blue collared) neighborhood. Every day for the past month and a half I have been receiving feed back from potential tenants that are interested in the home BUT once I provide them with the "standard minimum requirements" and the "initial costs", security deposit and 1st month rent, I don't hear anything back? Am I missing something? Below are the standards and costs I am currently using.  

Standard Minimum Requirements:
-The tenant or tenants combined must earn 3x's or greater the monthly rent from document-able income sources.
-Tenant(s) cannot have prior evictions or felonies.( Conviction of a crime that is a threat to people, property, manufacturing or distribution of a controlled substance.)

-Tenant(s) must have a credit score of 580 or higher.
-Tenant(s) must have good references from past landlords. 

Initial Costs at Lease Signing:

- Security Deposit (1 1/2) of monthly rent.

- 1st Month's rent due at lease signing. (Please note this home is renting $100.00 below neighborhood median.)

I thank you in advance for all your assistance.

Thanks Allect for the insight. I haven't purchased my first property but from my readings they say have professional team in place so that you can leverage their expertise.  I will make sure they aren't trying to over change. 

Good evening this is my first post.  We are in the process of buying our first property and from our readings they state the importance of your professional team.  Since we will be investing in Philadelphia we wanted to know if anyone had any referrals of good tax accountants?