All Forum Posts by: Tim Herman

@Brad E. are you a real estate broker? Georgia requires you to be licensed by the state to be a property manager. I leave a reserved at my PM and it is paid out. I receive a quote for the service before the service is provided if it exceeds the limit of no approval.

@Austin Noon Look at it from the tenant side. I don't want to fill out an application for a property I wouldn't be interested. List the requirements that are necessary to rent the property. Confirm with text or call that they meet the requirements and show the property. I do open house style. I schedule every 15 minutes. The 15 minute schedule allows for the flakes that don't show up. I usually show Friday  evenings and Saturdays.. I get their email address and send them to a link to apply for the rental if they are interested. Depending on the jurisdiction you have to take the first qualified candidate.

!@Kevin Forsell You need a different agent. He is telling you to commit mortgage fraud. Low down payment is for owner occupied. Google federal mortgage fraud. Max of 20 years of prison 5 million dollar fine. Bubba is looking for a new roommate. It is not that onerous to stay in the property for a year. 

@Emily Ziemba You are 3 months late doing something. Start the eviction process now. They will continue to withhold rent and why would they move out when they know you are a pushover. 

@Felix Piper Federal mortgage fraud is a class c felony. Look at the upside, lodging for up to 20 years with 3 years supervised probation and a 5 million dollar fine. Don't make anybody mad they may get back at you by informing the authorities of your crime.

@Alex Diaz unlikely to get 6% mortgage. No pmi for putting less than 20% down. Did you run budgets for capex and repairs. How long can you afford 1k per month coming out of pocket. That's the amount you are putting down. No pm cost. 

@Seth Wingate Vacancy is on the turnover of tenants. Sometimes you can get tenants to move in as soon as the previous tenant moves out. I touchup paint and deep  clean between tenants. I don't like to show the property while tenants are living in the property. It may take a week or so to find the right tenants and run background checks. You will lose up to a month of no income so that is a vacancy factor.

@Todd Miller That's over $300 per night as a short term rental at 100% capacity. Looked at March and a ton of properties near the area are renting for $150 per night. Weekends might be booked but unlikely 100 percent. So let's say you get $200 per night and 60% capacity, your gross will be $3600 per month. Where did you find the only property that will never have any maintenance. I average 1 per year on long term. No clogged toilets, no drippy faucets, burners that quit working, painting to spruce up the place. No other utility expenses like wifi. What are the reserves in the condo association or is there a special assessment coming up. I looked up long term rent and you could get a whopping $2700 per month.

@Nick Schlag for a rough idea you can use a percentage of gross income. For more accurate numbers you do a budget and it depends on the size of the property. My bare minimum for vacancy, capex, and repairs is $250 per month. That means sub $1000 per month rentals need a higher percentage to meet the bare minimum.

@Seth Wingate where you getting a 5% mortgage. Closer to 7% or greater. No mortgage insurance on less than 20% down. A vacancy factor of 3% is your tenant staying 33 1/3 months. That means when you evict and it takes you 3 months to get them out your next tenant has to stay 100 months to get back to the 3%. Banks will underwrite at 5%. Did you run capex and repair budgets or just using percentages. No PM. Are all utilities separated? Any grounds keeping expense.