All Forum Posts by: Mindy Bowden

Lenders typically want at least 20% down to purchase an investment property. You'll also need to extra money in reserves for maintenance, repairs and vacancies.

Treat them how you would want to be treated. Most people would appreciate as much heads up as possible if their situation is going to change. After you close, I would provide them with a written notice of your intention to increase rent if they choose to renew their lease in December. That way, it gives them time to find a new place if they decide not to renew.

Has anyone used Apple Pay as a form of rent collection? I'm considering it as an option to provide tenants, but would like to know if there are any cons to it I'm unaware of. Thanks!

When screening potential tenants, do you consider low credit scores a dealbreaker? It's obviously a heightened risk, but how much riskier? Do you find that most with low scores tend to be more risk than they're worth? Or are most of them responsible but may have just hit a rough patch in their life?

I have a rental property (townhouse) that recently had some water damage. The faucet to the tub on the second floor broke when the tenant tried to shut off the water. It took her awhile to figure out where the main shut off was, but by that time the tub overflowed. The flooring/1st floor ceiling beneath it was damaged. Anyways, my insurance company is giving me a hard time saying 1) "there appears to be no cause of loss...believed to be normal wear and tear" and 2) that the HOA's insurance company should be the primary insurance filing the claim and they should be the second.

First of all, even if it's caused by normal wear and tear, there's still loss so shouldn't it be covered? And secondly, my understanding is that the HOA insurance company would only cover the exterior and my insurance would cover the interior, which my HOA company confirmed as well. But my insurance company is giving me a hard time on that as well and wants the HOA to file a claim.

Is this typical coverage you all have for your rental properties? I'm at a loss of what to do next. Do I need to upgrade my policy to a typical homeowners policy instead of a rental property policy?

I'm going to continue with regular tune-ups and hope it lasts longer than expected. I have a portable AC on hand too, just in case.

Thanks everyone for all your suggestions!

It’s already about 12 years old and the other week, the tenant noticed that it was running louder than normally. It could just use a tune up but I’m not sure whether to spend money on tuning it if it’s on its last leg.

The HVAC on one of my rental properties is nearing the end of its life. It currently still works but I can see it dying this summer or by next summer. I can't decide whether to just go ahead and replace it or if I should wait until it actually breaks down. I'd hate for it to break down in the middle of summer and then have to put the tenants up in a hotel if the HVAC company can't get to us immediately (as it's usually the case down here in the South). Pros and cons to doing it now or later? If I replace it now before it's broken, can I still expense it or would it need to be depreciated?