All Forum Posts by: Mike McCarthy

@Jeremy Szymankowski it sounds like the tenant/mom feel like this is just paperwork since they already have the property. I would definitely give her a deadline, that a, b, c need to be submitted by Friday 5pm or I’ll have to look at other applicants.

Start off on the right foot with her. Be friendly, but firm. And don’t make assumptions - if her credit, application, etc meet your needs, then great. If not, move on to another.

Lastly, did you give your current tenant notice that their lease ends at the end of the month? Most leases convert to MTM unless notice is given.

@Edwin Ro what’s your current interest rate? What kind of interest rate are you looking at to refi? And most importantly, what are your longer term goals?

By refinancing, you’ll reduce your monthly payment by probably 1/3. (Your taxes and insurance remain the same). You’re also resetting your payment schedule to 30 years.

If that extra cash flow per month is what you need to be happy and successful, do it.

But also think about other options. If you put that $400K in an index fund, you’ll get 7% annualized ($28K/yr). If you invest it in a good rental property, you might be looking at 10%.

But really, the answer depends on where you are in your life and where you want to go.

It’s definitely a personal decision, but I would suggest 6-12 months of reserves somewhere it doesn’t have to be in a checking account earning 0%, but you don’t want to end up in foreclosure if the AC breaks the same month as the tenant moves out. You want to be able to weather those unexpected events and not end up in a bad situation.

Most banks require 6-months worth of reserves for their monthly payment. Which is a good place to start.

@Titus Dorman many landlords require their tenants to have rental insurance, for the reasons you state - as well as rental insurance will cover their belongings if a pipe bursts or there’s a fire. (Your landlord insurance will cover you and your property, but not the tenants property).

It’s sort of silly though I think for you to buy the extra insurance for the tenant. You’re then basically double-paying for insurance.

I think you just need to decide whether you want to force your tenants to have it. I recommend to tenants that they do (it’s an addendum that they sign), but I personally don’t require it.

@Rob Foss the standard policy is a $100K policy. It’s $100K liability and some lower amount for personal property (I think $25K).

This is sufficient for most properties and renters.

@Nicole Zach do you have space in your unit to install a washer dryer? It’s always best to have each tenant with their own so they pay for it and there are no quabbling over laundry left for too long, I always do my wash on Wednesday, etc.

a shared facility is fine if needed, but you need access (without accessing the other’s personal space) and you need to figure out electric and water.

I have seen 2 sets of washer/dryers installed in a shared basement, each connected to their tenant’s electric and water, and some kind of lock on the electric so they can turn on/off using a key and not use the other’s.

@Peter Goeller “some of your tenants are concerned about the security around the property at night so we are installing motion activated floodlights and cameras to increase our security. Cameras will be installed at the front door, rear door, and xxx. Please let me know if you have any questions or concerns”

@Matt Lopez you need someone trusted to be your boots on the ground. Whether that’s a friend, trusted handyman, or a PM.

It’s really hard to run things by just calling contractors. There will be a hundred little things that just need handling - and you don’t want to be struggling to find someone to go over to the house.

@Chris Abislaiman you can also simply create a DBA. It slows you to have a bank account and collect rent as ‘cool guy rentals', but eliminates the extra tax filings and LLC maintenance.

But I agree, hiding yourself as the owner is overrated. You need to be a good (and firm) landlord either way.

@Mike Craig partially unrelated, but is there a reason you’re not moving to apartments.com which has been running/owns Cozy?

I’ve been a Cozy fan for years and I’m awaiting the transition to Apartments, but don’t really know what to expect. Curious what made your decision.