All Forum Posts by: Sylvia H.

My property is up for a new lease and i am in the process of renting it to the next tenant. I have just screened candidates through zillow rental manager and shortlisted 2 potential renters.

1) An attorney with a rent to income ratio of 4 (rent is 2.5k, income is 10k). lives with a partner who has his own business (apparently making above 5k a month). Concern: can attorneys potentially screw you for the slightest reason? should i be concerned about the partner and his varying incomes?)

2) A family of 3 (husband is manager in a logistics company with income of 4k, wife not stable job with income of 1.6k and a young kid). Concern : with recession looming, if husband loses the job, not sure wife alone can pay rents smoothly every month.

I am not in the same state as the property anymore and both are extremely keen to take the lease for more than a year but i am struggling to decide between the two candidates. can you guys share your thoughts to help me decide ?

Different qn : what is the usual policy for pets (cats/ medium dogs)? do i charge monthly or 1 time pet deposit) ??

Thanks a lot.

Ugh this one is a difficult decision. The attorney could be a really great candidate but then again he could also be a problem if things don't go his way. The family sounds nice. You have to look at stability. How stable are these two tenants? Have they lived at their current rent for 3 years or more? Have they been at the same job for 3 years or more? Are they considerate to the former landlord in giving notice to that person? You want someone who is stable and easy going. It's not as simple as how much money they make. Lots of people make enough money but will completely make your life miserable.

Re: Pets. I don't allow pets of any kind. Cats especially can do thousands of damage because that smell is hard to get out of the house if they are not clean. A dog is a liability. Some insurance companies won't insure you if a person has a certain type of dog. Check with your insurance carrier to see if there is any barrier to you allowing pets. If you allow one tenant to have a dog the next tenant might have a pitbull. Remember if that dog bites anyone you are liable. Don't allow the pets. It's a liability you don't need. Best of luck to you

0 Votes

Austin, Texas

Quote from @Moises Guerra Garcia:

The offer was accepted late Monday evening (October 3rd, 2022). The closing date chosen is October 21st. My agent chose this date. There are 18 days between these 2 dates.

Since this is my first time purchasing a home, I didn't put too much thought into it. Today I decided to consider other lenders to see if I get a better rate. The Bank of America mortgage banker, who I spoke with on the phone and who was working on giving me a loan offer, was baffled by the 18-day period. The banker mentioned this period is usually 30 days. During this call, I learned a bit about the steps that take place during these 30 days (closing period). One step I recall right now is the lender appraisal. The banker recommended that I talk to my agent to get that change, otherwise, I could lose the escrow and option fee money on the closing date since the bank will not have enough time to get everything done by this date.

Is there any reason perhaps that my lender chose this date as the closing date? What is the reason behind such a short closing period?

I agree with the others. That is not a reasonable time to get a mortgage. So what can happen if you don't correct this if you go past the time for closing they can put it back on the market and keep your deposit. It's serious. You need to change this immediately and I would write in 45 days. Otherwise it's a huge mess. The appraisal alone could take two weeks. Don't do it.

0 Votes

Austin, Texas

Thanks so much for your reply. That seems to be the general consensus. I agree she was negligent. If she was truthful but to deny it was her, I mean come on. lol

0 Votes

New Haven, Connecticut

Quote from @Zach Rubin:

Quote from @Sylvia H.:

I purchased this way and it was an excellent way to get some repairs done and have one mortgage closing. Repairs cannot be more than 35K with FHA. You will put in your offer and get a quote from a contractor to complete the work. You can get. loan for updating furnaces, painting, pretty much anything that will improve the home. You could not for instance get a swimming pool or anything like that. They underwrite it as one loan and when you close the work can start. You will have to find a lender in your area that offers these types of mortgages. Word of warning. All FHA lenders are not created equal so look around and make sure you are dealing with a lender that can do what you require. Best of luck. It's a great program.

Thank you Sylvia for that information. Now would I have to search for a contractor myself during this process or would lenders have recommendations to contact?

Great question. You would find the contractor yourself. You need to find someone reputable and do your homework. Check to make sure the contractor is licensed with your state and that there are no complaints lodged against them. Also check to make sure they have liability insurance as well as Workmans comp insurance. This is to prevent them from making a claim against your insurance should they damage your property or get hurt on the job. Do not give anyone any deposits upfront. The lender will pay once the work is done and the check will be made out in your name and the contractors name so there is no issue with the work. The biggest advice I can give you is to do your homework. Angies list is a good place to find a contractor as there will be reviews you could read before proceeding. Whew! sorry for the book.

0 Votes

Raleigh, North Carolina

0 Votes

Raleigh, North Carolina

Quote from @Amonrid Chaiprathum:

We don’t want to commit mortgage fraud that’s why I am asking :)

Please don't. The fines are severe and you can go to prison.

0 Votes

Hey there. Question for you. Are you talking about doing a rent to own?

1 Vote

Joliet, Illinois

Quote from @Sawyer Ballard:

I'm 16 years old and I've been researching about real estate investing for the past year and I'm fully committed to it. My goal is to buy my first rental property when I turn 18 and I'm confident that I'm on the right path to do so. If anyone has anything they would like to share that they wish they would've done at my age or what they did that helped them such as finding a mentor or getting a job at a real estate related company to learn, I would love to hear it all. Thanks!

Wow. All I can say is kudos to you for being so young and thinking ahead. With real estate investing you have to walk before you can run. Small steps. If you are able to save 3.5% of a home you can get an FHA mortgage, (can be your own money or can be a gift from your parents) I would start off by purchasing a good condition 2 unit. You will have to live in one unit and rent out the other. That other unit can help pay the mortgage payment in part or in full. That will give you a taste of what it's like to own a home and also give you a start to dealing with tenants. Read everything you can about managing tenants and make sure you are doing everything legal. Go to your states website and look up rental properties, responsibilities of landlords and tenants. Starting small at your age will give you the confidence and experience to move on to bigger deals. Best of luck to you!

1 Vote

Salt Lake City, Utah

Exactly. Couldn't agree more. Thanks

0 Votes

New Haven, Connecticut

Quote from @Kristin Astourian:

Hello!

I live in Atlanta and am looking to split time in Nashville. My finance owns our ATL home, so I would be looking to buy the home in Nashville as my primary residence with the intention of short-term renting when we are not there. I found a property near down town that allows owner occupied STRs and was curious about 2 things:

1. Do you think there is a high-risk that an owner occupied permit could be revoked or that the city will change their regulations?

2. How accurate do you think the Airdna tool is? The location shows that it would have a 51% occupancy rate with an average nightly rate of $583. This sounds fantastic, but I’m not sure how confidently I can lean on the numbers from Airdna.

Lastly, does anyone have a STR management company that they like?

Thanks in advance!! I have a long-term rental and have been eager to jump into the short-term market, but am lacking the confidence to move forward. Any feedback would be so appreciated!

Hi there. So much to unpack here. If you are going to use this home for a rental the first thing you need to do is make sure the lender allows that type of renting. Some lenders could call the mortgage if you do not owner occupy it after telling them you would. The second place you need to check is with your insurance carrier. Short term rentals make the property more at risk for liability claims, etc. Your insurance agent may not honor a claim if they gave you the owner occupied rate and you are renting it out to holiday makers. I personally am not a fan of short term rentals because of the damage that can occur to the property for people who are just there for a night or a weekend. I prefer long term renters. Your call just make sure you don't get in trouble in not disclosing to lender and insurance company what you are doing. If something were to happen and you needed to make a claim they could deny the claim. Best of luck to you

0 Votes

Nashville, Tennessee

All Forum Posts by: Sylvia H.

Sylvia H. has started 7 posts and replied 139 times.

Post: Leasing advice needed

Post: My agent chose an 18 day closing period. Is this normal?

Post: Tenant stuck toy in the toilet and doesn't feel its her fault.

Post: Property purchase with FHA203K Loan

Post: Property purchase with FHA203K Loan

Post: Primary Borrower and Co-signer Occupancy

Post: How does seller financing work?

Post: Tips for a 16 year old aspiring investor

Post: Tenant stuck toy in the toilet and doesn't feel its her fault.

Post: Owner Occupied STR Question