All Forum Posts by: Rebecca Bauer

Love the nickname....rock n roll.

Just thought I would let my fellow investors know that Cleveland is evicting.....takes a little bit more time in the past, but it is happening.  A word of advice to all - stop taking agency money and start kicking out those who took advantage of COVID and really were not affected.  Those that were affected, try to work with them as much as possible offering agency assistance programs and bi-weekly or weekly payment options.....and remember those on SSI were not affected by COVID...

Listen to the developer....

Overall I would concur with pets as a definite plus vs negative. If you don't accept some type of pet you are really eliminating a large section of the rental market from seeing and residing in your units.  I would however, adopt the policy of a NON REFUNDABLE PET FEE (not a deposit) this would give your applicant some skin in the game and you some additional income to offset any unanticipated "accident", etc. Don't limit your market pool.

Banks have strengthened their tolerance levels for risk aversion given the recent economic conditions in an attempt to maintain their reserves and shift their holdings. I have recently seen a rise in credit score requirements on loans (to include FHA/VA borrowers), debt ratio reviews, additional diversification and some liquidation in the portfolios of credit unions as well as banks to strengthen their position in preparation for what is coming ahead in the markets. So what does this mean for investors? I see a movement in purchasing properties needing more work for and buying lower priced and conditioned properties utilizing cash. If you can keep your repairs to a "bare bottom make ready" (BBMR) scenario and keep the purchase price under $40K (given specific city markets, etc.) or what is below normal fair-average condition homes - use cash, otherwise private lenders. Private lenders will be utilized and should be considered at this time. The demand will increase for such, making it more lucrative for private lenders to lend more and also (charge) more. Demand goes up, so does the cost of doing business. It is still a Seller's market right now (city specific) - perhaps it's time to liquidate some properties that you are no longer in love with. Use that cash to buy or put in reserves.

Kenneth's answer is the best for this situation and borrowing from private sources as well.  LLCs will not get loans unless commercial. However some lenders do not want to do commercial loans under $500K as they believe they are too small/not worth their time etc. Do some research on this. Otherwise, find a lender that services their own loans and portfolio - typically credit unions etc. are a good source for this as well. 

The entire premise behind boarding rooms is the turnover - the agencies refill the rooms after "x" amount of time - so if Jan is taking up 1 bedroom in an all woman unit and the program requires her to leave in 4 months the agency refills it with another tenant for another 4 months etc.   so it can be an endless supply of boarders.  This is not a co-mingled tenancy by gender situation.  You provide a bed, a dresser.  Sometimes depending on the program the provider agency (not you) has a concierge/live-in placed associate.  Typical tenants are those in life in need of housing from negative/abusive/less than desirable circumstances.  If you have a 2 bedroom and you typically get $600-700/month depending on your market, and you can get $400/each bedroom, you are already ahead of the game and could have a non-stop influx of tenancy. Best wishes.  

Contact local area community organizations which place homeless in need of temporary housing. Many nonprofit organizations assist in this endeavor and need properties. It can be profitable as the prices can be vary/room per month depending on the market you are in, as do the stay periods.