All Forum Posts by: Sam German

First time renting out a home.

Posted on Zillow and got some responses.

One of the guys filled out a form which provided info that he made half the required amount, move-in date way too early, bad credit, etc.

Basically all red flags. He wants to see the property.

Knowing that he will not be accepted, do I have to get on a phone screener?

Show him the property anyway? Send an application?

Conflicted as to what the next steps should be for a person like this.

Once on a phone screener, if they mention they don't meet all minimum req, do I still have them fill out an application?

Can I insist they fill one out before they see the property, knowing that something will come up?

Or can I ignore him altogther?

Lots of questions but that's what you get with a first-timer. 

I've been deeply interested in looking at STRs in the Minneapolis - St. Paul Metro area. I have no one in my life that I can effectively bounce ideas off of and hear from their experience. Looking for like-minded people who'd be interested in meeting and talking over STR experience and strategies.

I have not used contractors before, but in my research, it seems common to encounter problems, high costs, or sub-par work when working with contractors. I just have yet to establish relationships, so I don't feel comfortable going into a deal knowing I will need a contractor, with no one to rely on. 

@Joe Splitrock I believe I have my standards set appropriately. In my market, $275k-$325k is a nice, but modest home. 4bd and 2-3ba is reasonable. The main reason I'd like to buy as primary and eventually turn it into a rental is to take advantage of primary residence mortgage terms (down payment, interest rate).

@Daniel Anshus I will for sure cash flow my current home, but I am just concerned about the next home I choose to live in. 

I don't know if anyone has experience in my market renting out homes for far above the median as long-term rentals. I have definitely considered STRs, which could be a good option when I move out of the next place I buy.

Hey Emanuel,

I've originated a fair amount of FHA loans, and this is a common struggle. Did you have any sort of work history before you played Basketball overseas? As long as you have worked 6 months at your current job, and you have 2 years of history total, you might be able to make it work.

By "tax-free" does this mean you received no government documents outlining how much you were paid? If you have anything at all, that could help you. Do you have the name of someone who could fill out a verification of employment form to confirm your previous employment?

Also, have you considered a co-signer? 

Hey Everyone,

My wife (22) and I (22) own a primary residence in Blaine, Minnesota (large suburb 20 mins north of the cities) and recently purchased a rental in St. Cloud (1 hr NW of cities). I want to keep pushing, and my next idea would be to find another primary residence and move there, taking our roommate with us. We would then turn our current home into a rental. 

The Dilemma I face is this: My price range is $275k - $350k, but I struggle to find something nice enough to want to live in, that would also cash flow once we move again, turning the home into rental #3. I don't know any contractors at all, let alone ones who won't give me the shake-down. Therefore, any homes that need a lot of fixing, even cosmetics, might be out of the picture. I just don't know if there will be renters who are willing to pay over $3,000 for a nice home in the 'burbs, otherwise, my new primary residence won't cash flow when I move out.

TL;DR Has anyone had success buying a nice primary residence and finding renters to cashflow when you move out? Or will I have to settle for a light fixer-upper?