All Forum Posts by: Roger Pokorny

Welcome to BP. There is a wealth of information hear.  It's the best place to gain knowledge and network. 

I am looking for fix and flips in the Bloomington area. If your wholesaling business brings you down south let me know.  Maybe we can do business. 

@Penny Clark thanks for the information.  I realized as the post progressed that I should do a better job with subject heading.  The big question I had was around the CC and loan information.  I reviewed about 4-5 different sources for an application I was developing and it seemed like most of them asked for this information.   I thought it was strange.  I posted the question on BP to find out what the norm was.  Thanks to you and others, I have determined that my initial research was a little off, from what most landlords are doing.  Thanks to forums like this, you can get real answers from the experts quickly, rather than unreliable sources.

I do appreciate your comments, though.  This helps me streamline my application.

@James Wise, @Alex Hamilton, @David Panzera

Thanks for the responses.  In the few different applications I looked at, requesting the CC and loan information seemed more the norm.  I thought it was odd and that is why I posted the question.  You are confirming my instinct that this information is not needed.  It's great to have a forum like this to get real information that eliminates mistakes, and/or re-inventing the wheel.

Thanks again!

@James Wise, @Gail K., @Jeff Gates

You all bring up valid points.  I like @Jeff Gatespoint about applying for a loan.  I didn't think about it that way.  However, I agree with @Jeff B.that the CC and loan information is on the credit report.  It doesn't seem to accomplish anything by asking for this on the application.  Has anyone had push back from potential tenants in refusing to supply this information?  I am referring to the CC & loan account numbers and balances specifically now.

I can understand the bank account information.  Is it common to ask for credit card account numbers & balances, loan account numbers and balances, money market accounts, etc.  I understand wanting to know as much as possible about the potential tenant but is this going too far?

It's been a long time since I filled out a rental application, but this would make me uncomfortable.

I am developing a tenant application and am a little uneasy asking for personal information.  Many applications I reviewed while developing mine asked potential tenants for bank and credit card account numbers and balances.  I am curious why it is necessary to ask for this information when most of this information can be obtained through the credit check.  In the times we live in where identity theft is very real, I would think many qualified tenants would refuse to supply this information.  

I question if it is really necessary and would be interested in hearing feedback from the more experienced property managers and landlords out there.

@Scott Schultz highlights the point I was trying to make.  You have to be careful looking at current tax records.  Is the townhome currently owner occupied?  If so, the current tax records probably have exemptions that rental property does not qualify for.

Again, I am not familiar with GA property taxes, but I will use an example from Indiana. A SFH owner occupied will run about 1% of market price. The instant that SFH is turned into a rental property the tax rate jumps to 2%. If I relied on the tax records that the previous owner paid, I would be under estimating my taxes and could turn a good deal into a negative cash flow.

You mention that your numbers are conservative.  I don't think you are being conservative at all.  I think they are right on with what you will be paying for a rental.  The property management fee is lower than what we see in Indiana.  Typically, 10% of gross rents plus tenant finders fees are charged, if you want full property management.

I hope this helps.  You know your market better than I do.  Good luck and I hope it works out for you.

When I am analyzing a deal I look at two things. CoC ROI of 12% and a cash flow of $200/month. These hurdles can be difficult to achieve but if you look hard enough they are out there. I would consider a lower return around 9-10% and $150/month, but not any lower.

My thinking is I can get 5% returns in the stock market with much less risk. Although 5% about now in the stock market would be a dream. None the less, historically 5% returns in the stock market over the long run is not difficult to achieve. 

I am not familiar with your market but the taxes and insurance look low to what I generally see. If these are off even a small amount, they can make a big difference on your CoC ROI. I would double check these numbers.

New home construction cost would be around $100 sq/ft.  Typically the foundation and some land development can be salvaged, putting replacement cost around $85-$90 sq/ft.  This will vary a little with where you are investing.  The suburbs of Chicago and parts of Indianapolis will be higher.

Unfortunately, this is a frequent occurrence. I purchased a property last year that didn't have a 160 sq ft addition included on the tax records. I pointed it out to the realtor and I was told they go by the the tax records to avoid lawsuits. I don't know how you get sued for correcting an error. 

I have seen it several times and always double check the sq ft when evaluating a property.