All Forum Posts by: Stetson Oates

Hello,

I've received a lot of calls and have done many showings on my 2 properties in the same area.  I use Turbo Tenant and have sent the application link to 20 or so people. No one applies.  I've had several "potential" tenants, I've sent the application invitation to, none have filled out the application.  The Turbo Tenant fee is $55 per application.  Is the application fee a problem? If not, are these people just not going to qualify?  Loose qualifications are 3X income, 580 Credit Score, No evictions.....  Oklahoma City is the Location...

I've always looked at a property netting $100 per month as not worth anyone's time. At that point you are banking on appreciation 10 years down the road. If I'm going to be liable for $250K for 10 years, it better net me more than $100 per month. The issue is leverage, if used responsibly, it helps expand growth. If used irresponsibly it can crush you. Lots of investors are leveraged to the max. If there happened to be an event in the market that upset the financial lenders, they are toast. All cash or very low LTV leverage, you will sleep better and succeed in the longer run.

Option 2 is what I'm doing now. I plan to pull some cash out once rates go down, but leave the LTV at 25% to 35% on each property.

If you have the cash its best to use it. The more you leverage the more risk you have of failure. I'm using cash right now and IF rates turn lower Ill refi and keep the LTV at 25% to 35%. This gives you some cash back but still plenty of protection in a down market.