All Forum Posts by: Millie D.

I disagree with @Don Glasgow regarding credit scores. I have not found them to be a good predictor of a good tenant. I have had several divorcees with terrible credit scores who turned out to be ideal tenants. European transplants for whom I was the first landlord in America--paid in cash, extremely clean. Also, some young folks who had just landed good jobs after college. 

Interviews with former landlords and employers are far more valuable. Also, a wise landlord once advised me to judge a tenant by the car. Is the car clean, well-kept, or trashed? How they keep their car is how they will keep their home. I admit I now keep an eye on the car when an applicant shows up for a viewing.

 In the area where I am, the type of tenant that will pass the requirements of @Chris Kennedy are most likely folks who are moving here and will be moving out soon when they buy a home--this may be different due to the market economics in a FL or CA. 

I prefer tenants that have a longer term perspective.

• No smoking--(they must sign that they do not smoke, many will say they don't but actually do)
• No pets
• Clean criminal background check
• Excellent rental reference. My questions to current/former landlords:
  
  • "How many late payments has tenant had in the last twelve months?"
  • "Have you had any complaints about the tenant?"
  • "Have you had any difficulties or incidents with this tenant?"
  • "On a scale of 1-10, how would you rate this tenant?"
  • --if less than a ten, I ask why.
  • "Is there anything else I should know before renting to this tenant?"
• Ability to pay deposit at contract signing
• Steady work history with income 3-4x rent depending on rent amount.

These requirements (except income & work history) are checked on everyone over the age of 18 who will live in the unit.

We took out a loan on one of our 401ks. It was the easiest deal ever. Filled out the application online in 5 minutes and got the check in a few days. You must pay interest on the loan and that's the best part. Paying yourself interest instead of to the bank.

Wow @Paul Stern that is so much better than what I am finding here my area. The lowest so far is 5.25 on a 5/15. The good thing about that loan they are offering is that it is fixed for the first 5 years, then converts to ARM for the remaining 10. That's better than what I've had up to now, because the ones I have now are balloons that have to be re-underwritten (including appraisals, finance fees, paperwork, etc) at the end of the 5 years.

I believe I saw someone else in a different post mentioning a rate in the 4's. Why am I not finding that kind of rate? Is it my region, am I not looking hard enough or not looking in the right places? 

Do you use the banks' offers as negotiating power to try to get a better deal? I mean do you go to one and say "XYZ Bank is offering 4.5%, can you do better?"  I have not done that but am wondering if that would be a good strategy.

Hi--I don't want to hijack the thread but can someone point to a post or information that explains why doing a rent to own with the tenants is no longer compliant with the law (namely how does Dodd Frank preclude it)? Is this for mobile homes only?

Thank you!

That's a big project! Where is it in Charlotte? Looks like it's in a neighborhood with a lot of lovely old homes.

Hi Justin,

I found this document for Denver; perhaps there is one for Pueblo also. 

http://www.denvergov.org/Portals/777/documents/For...

I'm in North Carolina, perhaps the market is different in CO, but a word of caution. I've noticed that investors don't go to the foreclosure auctions to buy property anymore. I bought one at the courthouse auction but also won't anymore. Why? Because the auction price is usually quite a bit higher than what the property will be marketed at once it's in REO. So it is usually better to wait for it to come up for sale on the MLS after the auction-- at least in my market. You could test this theory in Colorado by picking a few foreclosure that are going to auction this week--if they are not sold to a 3rd party, they will be back on the market in about 3-4 weeks. Compare the auction price to the new sale price and you can get a handle on whether it's better to buy at auction or after auction. That said, once it's available on MLS, you have to pounce! Get your bid in at 12:00 on the day it becomes available to investors.

Hope this helps!

Thank you for the warm welcome! I am north of Charlotte, in the Mooresville area. @Ricardo S.  where are your rehabs?

I just spoke with one lender who said their rates were around 5.5%. Does this sound about right to anyone else?

Thank you Paul! Would love to hear what rates you end up with.