All Forum Posts by: Sylvia H.

  Im getting an investment loan where the appraised rent amount must met or exceed the mortgage payment.  Long story short the first appraiser the lender used was horrible and gave a horrible appraisal amount of 30% lower than anything you can possibly get in literally anywhere in California (1 star yelp reviews across the board on how bad this guy is).  So now we are ordering up a second appraisal.  This time we want to take no chances and communicate with the appraiser before they come or when they arrive to do the appraisal.  

Any advice on how we should go about this?  We were thinking we have our agent relay some comps to the selling agent to give to the appraiser when he arrives or should we be a little more direct?

thanks 

 This is super common, we deal with this multiple times per year- you simply have someone who wants to get rid of a roommate. The short answer is that there is zero benefit to you, and you could very likely find yourself in court if you try to do this. There are two possible secenarios (but I'd reccomend you just tell the husband, "sorry, but nope.")

-Scenario 1: Wife wants off the lease: You could do this as a favor, but if the husband defaults, you can't go after the wife for rent, which benefits her, not you. 

-Scenario 2: She doesn't want off the lease: drop it there. She has the legal right to be on the lease and occupy the property when she wants and you have no legal reason to deny her that right. 

They are having a personal problem that has nothing to do with you or your lease. Don't make it your problem. I see this all of the time with self managers- getting roped in to personal drama and tenants wanting to use their landlord and their lease to exact revenge on their friends and family.  Just say no! 

No problem @Travis Felchlia.

Hey @Sylvia H. - Rent-to-own and seller financing are two different strategies.  

Rent to own = would be if you already own the property (typically single family house) and you rent it to a tenant with the option to purchase within a certain time frame.

Seller financing =  Acquisition strategy where the seller acts as the bank and you pay them a monthly payment and downpayment at specified terms to purchase the property.

@Luisa Trigo - We aren't too far from you in Missouri, just a little NE up in Chicago.   The answer to all your questions is yes, as long as the seller (and bank if in the picture) agree to the contract terms.

You can set up seller financing however you want actually which is why it is such a great creative strategy.  You can do seller financing with just the down payment and have traditional bank financing (more typical on commercial deals) the only speed bump is whether or not the BANK will allow it.  You can also set it up for interest only while you add value and then refinance.  Everything is negotiable. 

Sounds like you've answered your own question.  Besides, why renew a lease with a late-paying tenant??

Regarding possible eviction, you need to consult with an experienced eviction attorney now to prepare.

A word of advice:  Take the emotion out of it.  His circumstances are unfortunate, but they're not yours to consider.  This is business.  You're in business to make money with minimal headache.  He is no-longer an ideal tenant, move on to the next.

Hi BP pros,

Is it ok to let a renter rent my house if her credit score is 501?

I am new and starting my first rental property. Your response is much appreciated.

Sincerely,

Van

Is it permissible to deny a candidate because the other tenants get “creeper vibes” from him?

I’m renting by the room and have the current tenants show the place. After I followed up with them, they said he gave “creeper vibes”. However, so long as his background check, references, and income requirements check out, I feel like it’s illegal to deny based upon the other tenants just not liking his vibes.