All Forum Posts by: Sabrina Baldwin

I'm going to have to disagree with most responses. I look at each applicant separately. In general I don't like any recent evictions  (i.e. within the last 2-3 years). If a person had an eviction and it was years ago but since then they've rented from someone else and I can get a good landlord reference, I will consider them especially if they have a solid income and credit report. Look at other items on the credit report to get an idea of whether or not this person pays bills on time. I wouldn't flat out say 'NO' without evaluating the entire picture. Make certain to verify all things before making a decision.

Thanks for the feedback. I'll definitely talk with my CPA.

So I'm preparing to pull cash out of 2 properties I own free and clear and going through a portfolio lender. They require the property to be owned by an entity not me personally. Ive seen a few threads that mention a potential tax liability if this is done. Can anyone share a little more information on transferring the ownership of property in your name to an LLC or any other entity for that matter? I don't want to move forward on this until I have a clear understanding.

Sabrina

Thanks everyone. These are great suggestions. I definitely need to give residents notice.

Sabrina

I have an 8 unit apartment building and currently the water, sewer and trash is included in residents' rent. Each unit is a 2 bdrm and the rents range from $540-$575. The water is billed based upon usage and it continues to go up every quarter. We've checked for leaks and found a few and we are now looking into changing out some of the plumbing fixtures over time to help reduce water consumption.

Anyone have suggestion or other ideas to reduce costs and pass expenses on to the residents?

Hi Joey Noel,

I currently live, work, play and invest in St. Louis, M! Feel free to contact me, I'd love to help you anyway that I can.

Sabrina

Amy I agree with the above. Don't give too much weight to the credit score. You have to look at the entire picture. A person could have a low credit score b/c of a short credit history, medical bills, incorrect information that's  never been updated, etc. If a person shows good employment history  (3+ yrs), good income (including section 8 b/c its guaranteed), a clean background check, can pay the deposit and has a good landlord reference,  I'd accept them. 

I've posted this in another post but I have a scoring criteria to avoid this. I score if a person  showed up to see the house on time, if they brought all items requested,  if they  completed the app in it's entirety, to how long they've been employed and how long they lived at the last residence. It takes away from having to decide based on just a feeling.

If you are concerned about getting a filthy resident you can always do a home visit before accepting them. I've done that before and works. 

Welcome to the STL!!! Let me know if you need help with anything or referrals.  

Hey Chris,

It looks like you have a good plan. A few things to think about:

1. You have a RE Attorney listed as part of your team which is great. Just want to point out that there are several different types of RE Attorneys so don't think this is a one size fit all. Some RE Attorneys specialize in evictions, which you may need. Some specialize in setting up your real estate deals if you don't go through a RE Agent. Another type of RE Attorney may help you set up your entity (i.e. LLC, Corporation, etc.). Make sure they specialize in the area in which you need.

2. Did you determine if you were going to operate under your legal name, an LLC, S Corp.? Start researching and thinking about that now.

3. Your packet looks good. Include a Renters Insurance Form for residents to sign stating they understand it is their responsibility to always have renters insurance and that the Landlord is not liable for their damaged property. You should require that all residents have renters insurance in case their personal belongings get damaged. Let them know up front that you don't cover items if damaged because trust me they'll expect you to pay for stuff.

4. NEVER rent to friends or family. This is my personal motto. I want to maintain my relationships with my family and friends so they all know not to ask me if they can rent from me. However, I'll refer them to another Landlord friend.

5. Set concrete criteria for selecting tenants. You never want to be accused of discrimination. Become Familiar with your Landlord Tenant Laws

6. Visit www.mrlandlord.com It's also a really awesome site for fellow Landlords.

7. Hire reputable people to work on your properties. Referrals are the best. Make sure they are insured. Ask them for a copy of their certificate of insurance and ask that they add you as an additional insured. Many small time handymen wont have this and you'll have to make the decision if it's worth dealing with a vendor and the risk of not having it.

I hope that helps. You'll do fine. Just jump in there and do it!

Sabrina

Dave, 

Since you are new to this industry, play it safe. I would definitely go take a look at the building first. You'll need the practice in assessing repair dollars anyway. In order to know if it's truly a good deal you'll need to know how much repair work. 

Don't let the boards on the building fool you. Call the agent to see the inside, its not unreasonable. Boards can easily be taken off the doors. Do ask about structural damage for safety reasons.

Good luck!