All Forum Posts by: Ryan Spath

This same thing happened to myself ~12 years ago we were using banks instead of mortgage brokers, the banks did not consider all the things our broker did.

Have you looked into DSCR loans? These products use the debt service coverage ratio of the subject property and it has nothing to do with your personal situation.

Correct me if I'm wrong but this sounds like something your PM should be versed on and would be handling. If they are involving you with the decision making process on this or asking you how to handle I may be looking for another professional in this arena.....

Do you have any type of language in your lease that states what the fee is if the lease is broken early?

Also, refer to your local laws as how to proceed from here...

best of luck, and let us know what happens.

We had a conversation about this the other day. From what we were told you are on the right track. As long as everything is separate and there are agreements in place we were told this 100% adds another layer of protection. 

If you find / hear otherwise please share / post 

thanks!

Great conversation! My biggest learning experience was not having an early termination clause in our leases. We had a tenant sign a lease and move in for a short period of time, they ended up purchasing a home and we had to re-rent the home in a month that is less ideal to have turnover. This cost both time and money, we now had to list the property for rent, screen tenants, move them in (at a lower rate).

We have since included a early termination clause in our leases that allows the tenant to buy out lease at a predetermined fee. This has made those conversations much easier when we are approached by current occupants that do want out of the lease early.

@Aman Raj this sounds amazing! Is it an app that would need to be downloaded and simply listens to your conversations and provides what you stated above?

@Robert Jones great question. Personally I prefer locations I live or have lived or a place I am familiar with. We like places with population growth, job growth, lower unemployment rates. When it comes to picking an area inside a location again in my opinion it is best to be your own boots on the ground and know the areas personally. Not saying it is impossible to do this remotely and never visit (people do this successfully). However, for myself personally if I were to consider investing my family's hard earned money in a new market I was unfamiliar with I would hop in the car or plan and spend a few days there. Meet with a realtor and possibly view a few properties in a part of town they referred. Interview a couple PM companies. I would also schedule my trip around the time when a local meet up was happening and be sure to attend. Best of luck!

@Sean Petrash congratulations on the rental! Contact who ever you have your personal homeowners policy through. Tell them you have a rental property and they will provide you with a policy. Next, consider an umbrella policy. This will help protect you in the chance something major happens and protect you. 

Before becoming a realtor I used redfin,zillow, realtor to help with this. If you look daily in the same area for an extended amount of time you start to get an idea of the values of the product you are seeking. Also, go walk the open houses for things in your market to get an even better idea.

@Ivette Raygoza 

@Delroy Watson congratulations! Sounds like a great project!