All Forum Posts by: Muks M.

@Thomas S. Thanks Greg again!!

Agreed with you comment around background check. They agent is claiming that it was done as part of them getting the US VISA. They started their job on Mar 1 in the area and looking for a home in the neighborhood. Perhaps currently in temporary housing offered by the company as per my property manager. And also according to my property manager, it is a normal practice for someone to come from out of states and find temporary housing before they find the permanent house and my property company manager company goes with the income and bank balance in these kind of cases without any hesitation but I will be bit concerned based upon what I am hearing here in this forum!

@Rod Hanks

@Todd Plambeck
@Rod Hanks

@Rod Hanks

@Fred Heller

@Thomas S.

@James DeRoest

@William C.

Thank you all for the responses. Really appreciate it! Good to see a mixed response!!

This perspective tenant with a white collar job of ~12K/month and rent of ~2K/month makes me feel that it may be worth a risk (but you never know!) especially when they are ready to move in from Apr 1 and the property is sitting vacant for the last 2 months. 

No other lead at the moment other than 1 more application but he works under the table and not able to provide paperwork for income. Waiting to see his income tax returns but not sure if I will be comfortable with that ?

Leaning towards the no credit but better job as opposed to low credit/no income proof/under the table job.

Any further thoughts with extra information ?

@William C.

What would you be careful of before renting to someone new to US with good salary (6 time rent) but no credit history in US ? Proof of salary from employer offer letter only. 

Good bank balance proof (25 times the rent). No background check option available as recently arrived from out of states. Agent claiming that background check was done as a part of VISA.

Just wanted to have people's opinion so that I dont miss anything obvious.!!

@Dawn Anastasi

In fact he did mentioned that he is going through the process of divorce and perhaps that could be one of the reason in this case. More than anything I was concerned of giving someone $1000 in cash as initial deposit (50%) and he run away with that as I am using him for the first time. Does not look very likely as he came across as a nice gentleman and could not find any red flags so far on his company etc.

Was reading Brendon's new book on managing rental which I received few days back and the chapter of contractors forced me to do my due diligence and hence this post ;)

@Roy N.

Just figured from another forum that 1099 may not be required in my case as it is an Inc. I will be paying to!!

https://www.biggerpockets.com/forums/67/topics/238772-paying-contractors

@Roy N.

Great tips. Would you issue 1099 for ~$2000 job ? I would think that the payment would need to be non-cash for 1099 ?

Also - would you think that I can write off cash expenses and/or for the unit where the repairs are going to be done prior to renting ?

@Roy N.

He would provide the receipt no matter what is the mode of payment. Perhaps its helping him on his taxes ?

@Jeff Pancone

Thanks for the quick response. Will do that!!

I will be signing a contract with contractor tomorrow for home repairs prior to renting (hoping I can find tenant by Feb 1). Couple of questions:

1. Is paying by cash a good idea for ~$2000 repairs as the contractor is offering ~6% discount.

2. Can I write off these expenses later if these repairs are performed prior to renting and paid in cash ?

Leaning more in the direction of paying by cheque as this is the first time I am using this contractor (although he seems OK and the saving are just ~$150!) and keeping in mind the tax write off if expenses incurred on the property prior to renting permissible during tax filing ?

@Account Closed

Probably not a lot (~3K)..was trying to figure if the argument used by one of the agent during my due diligence is a valid one ? I have seen people saying that 5% is easily negotiable and have an agent ready for that (2% for her as a selling agent and 2.5 or 3% for buying agent). However, another agent used the marketability argument and was kind of at the fence thinking delayed selling.