All Forum Posts by: Francis Louis Vogel Jr

From a bankers prospective long term tenant leases are a requirement if your trying to sell or refinance the property. Without long term leases raises the risk profile for the prospective financing. You'll be offered higher interest rates, very low loan to value and a shorter amortization period. In some cases the only financing will be a hard money bridge loan.

There are two fundamental ways to value a property.

1] The property value in relation to comps
2] Value based on cash flow

Bankers like to see a stable business model with future predictive cash flow.

The landlord can sue the squatters for fraud and theft. This way the landlord can garnish wages, lien bank accounts and take tax return checks. Do this simultaneously with the civil eviction action will give the landlord financial recourse during and long after the eviction.

Great read. Thanks

Add language about: long term visitors, auto's must be registered at the subject property address, land lord is co-insured, number of tenants and over night visitors, only tenant use of washer and dryers, noise rules, smoking pot in units, cultivation of anything, business operations in unit by the tenant, visitor parking, auto insurance, grilling and BBQing, sub leasing, snow removal policies, reimbursement for liens for police and first responders, entry to unit for inspections and repairs, ongoing due diligence and back ground checks of the tenant. This is just to name a few.

Ben,

My first home purchase back in the 1970's was a 2 plex, just out of high school. Looking back it was the best financial decision I ever made at a young age. I was able to live with little out of pocket every month. After few years I saved 90% of my pay checks and it really added up. Saved up to start a family. The key is to attract a high quality tenant. This turned out to be a retired person who had sold their home recently and ended up renting from me for 10+ years. To attract high quality tenants you need to invest in the rental unit. Great paint job, quality counter tops and washer and dryer, ect. Advertise locally, churches and VFW for example.

There will be some extra work involved. You'll cut the grass, shovel snow, repairs and clean the gutters. At the end of the day it's worth it.

Good luck.

If the mortgage is 3 months past due. Most likely the mortgage is in foreclosure and moving to sheriffs sale. Check Zillow and other sites to see if the property is for sale. I've worked with a lot of private lenders and property owners in the past. If the property is listed. Directly contact the property owner to purchase. If you're offered a land contract make sure you're on title. If you're not, it is a lease agreement. At the end of the day it's all about the money.

Steven, thanks enjoyed the post.

Dillan,

Your first real estate investment should be in a 2 plex home if you haven't already purchased a home. You live in one unit, the your tenant covers the mortgage, taxes and insurance. Secondly, savvy real estate investors are also skilled trades. Hence they can put in the sweat equity into real estate investments. This expertise allows you to spot good investments and conduct due diligence.

Good luck!

First, check with the HOA if there is one this is the best place to start. There may be deed restrictions for rentals.

It depends what State you're in.