All Forum Posts by: Sean Lambert

@Holly Horn I always pay for water/sewer and garbage. Water and sewer attach to the property. I also don’t want trash to pile up. These are just expenses that I write off and use to calculate cash flow.

@Hunter Warren

I use Excel to track all income and expenses. I have a workbook for each property. I’ve setup autopay/paperless billing for each bill. I’ll get an email for each bill or itemized by property and enter those into the associated spreadsheet. Each workbook has a summary sheet that mimics a Schedule E.

@Shane Blackshear I would just recommend that after you pull the money out that the existing properties still cash flow. Don’t rob Peter to pay Paul.

@Samuel Bridges

Yes, get pre-approved, especially in this market. If no local credit unions or banks are available, you could contact a mortgage broker. Good luck!

@Chey Zwicker after under contract, get a copy of the current tenant lease and seller’s Schedule E for at least the last two years, which will show you seller’s reported expenses and income.

Being five hours away, do you have contacts for inspection, etc. Will you be managing the property yourself or having a PM do it? How is it currently managed?

@Matt Slease read the existing lease, so you understand what’s currently in place. Get information from the seller on the amount of security deposit. Draft a letter introducing yourself, your intention to keep renting to them and where/how to pay rent. Have them fill out your application, so you have their info.

I’ve inherited a number of tenants and it was a simple process.

Congrats on the new purchase.

We relocated for a job, purchased a personal residence in the new location and rented out the previous personal residence.  We did a lot of research before we rented the original house on landlord laws.  

To answer the question, we may have researched about three months.

Don't over analyze and don't count on appreciation.  Focus on cash flow to float you through any bubble pops.

Check your local/state laws, but I don't think you can double dip on the rents.  If you get a new tenant in there, you can't make the exiting tenant pay the remainder of their lease if it overlaps the new lease.  

They probably want a quick and painless close, which can happen with a cash offer.  

If the offer is dependent on financing, that could take a lot longer and could fall through at the last minute. Can you round up enough funds (borrow, HELOC on your primary home, etc) to offer cash?

Good luck!

As mentioned above, raise the rents on a regular basis.  It doesn't have to be raised a lot, but it should be done regularly, so you keep up with market rates.  Make sure to check local and state laws, because there might be limits on rate increases and how much notice you have to give the tenants before the increase.