All Forum Posts by: Stone Timber

I decided to eliminate the Indian applicants. I was unsure of the curry issue but there were posts here and on some realtors' websites that worried me. Stories of houses being impossible to sell because of the persistent curry odor. This is a nice unit, freshly renovated with all new flooring and paint. I can't afford to let it be ruined with obnoxious odors. Secondly, and perhaps even more troublesome, the tenant was difficult during the screening process. He objected to my need to see tax documents to verify income and said he was not comfortable if I did not believe he could pay rent. I explained that this was a normal part of the screening process but he was resistant. I ignored signals like this during the application process for what are now my worst tenants. They pay on time but they are very irritable and difficult to deal with. I don't need difficult tenants. So I have decided to keep the place vacant. The Indian tenants would have moved in this weekend and paid February rent of $1,200 so I am losing that. But I don't want to risk damages to the unit and potentially difficult tenant relations. So I will keep looking.

I don't think you are in a good position to be an investor. The only debt that makes sense from a financial point of view is that which has a return greater than the cost of the debt. A small mortgage on a great cash-flowing rental. College tuition in a high-demand, high-salary field that denies entry without it. Debt for cars, feel-good degrees, vacations, and other niceties are financial folly, and if that's what your debt encompasses you are not prepared to be a real estate investor. 

What folks call "investing" here on BP is not investing, most are operators, that means most of their money comes from operating and dealing in real estate, not buying it and holding it. The definition of investing was posted on BP and the poster couldn't even read the definition properly but gave it a twist to allow someone like a wholesaler to call themselves an investor. It's purely an ego, marketing aspect of with no money operators calling themselves investors. No, I'm not off topic.

Hi @Stone Timber:

Could you list the 5 zip codes you mention. I have been investing in Chicago and would like to keep these in mind for future purchases.

I was also surprise not to see Chicago on the list, however I hear there will be a hike in taxes which may effect the profitability.

 You have the bad-assest name ever! 

As has been said, if a rent survey shows that your ask is reasonable for the area, stick to your guns. A vacant unit is better than a bad tenant - waay less expensive. 

@Shawn Ackerman - My reason as follows:

Credit score 556 (not a deal breaker if it was medical bills)

She co-signed for a car and has her own. 30-60 day late payments on the co-signed car (total car payments $750), if shes stuck with the co-signed vehicle.  

Employed for 9 month - not a huge deal, but a factor.  She can still be on probation. Major hospital and I know the rules.

Child Support was included in 3x salary and her children are 16-17.  Not much longer for child support (not judging, but they didn't appear to be college bound)

Bankruptcy (which isn't a deal breaker, but late payments after discharge). That tells me that she's not trying to rebuild her credit.

She moved addresses 2 times in 3 years. Seems odd when you have teenage children.

That was too many red flags.

@Tony Kogan

To maximize your return?  Buy a foreclosure on the court step.  Buy some tools if needed.  Fix it and sell it just below market value.  Should be within 6 months.  

I would spend the next 6 months doing the exact same thing.  Shoot for at least a 60% return.