All Forum Posts by: Tim Southerton

Hi folks,

My wife and I have our property listed, created screening criteria, have done a few showings, and we have 2 applicants so far. Like everyone I'm looking for the elusive perfect tenant, but both of these applicants have some credit issues so I thought I'd ask for feedback from this community. Ultimately I know the decision is mine, and there is risk whenever placing a tenant but let me know what you think.

Application 1: Family (Husband, Wife, young son, elderly mother) - Wife credit score 640ish, husband is 585. They both have some late payments a few years back for credit cards, and one account was put in collections. They claim this was due to medical issue, premature child birth, and an extensive hospital stay. Everything recent looks current and they say they are back on their feet and working to restore their credit. I still have to verify income but what's reported compared to their current debt ratio looks like plenty. However, they say they were homeowners for the past 12 years, but I'm not finding a mortgage on either credit report. Their home address lists in Zillow that it sold back in April for $1000 which seems insane. Is this some sort of real estate deal perhaps? It seems strange. The wife says it was just her who owned the home and "I sold my ownership rights in April and currently do not have a mortgage."

Application 2: Semi-retired former teacher reporting a much larger income than necessary through new part time job, pension, and social security. Lives alone with her 2 dogs, we're allowing pets with deposit. Credit score much higher, 676, but has one account that shows "Unpaid balance reported as loss" on her credit report. The same bank is listed twice, one with a $0 balance which shows some late payments as well as some on time. The other listing shows all missed payments and looks like a write off. This is for several thousand dollars, which obviously is concerning. Everything else looks good, her score is high, she has landlord and personal references. 

What do you think, any advice? I can always explore a higher deposit, which the first family is already totally on board with. Let me know if you'd decline either or both or any other suggestions you have. Thanks!

More awesome advice, thanks @Dmitriy Fomichenko! I'm checking out the alerts and the members list to start to build some connection. Thank you!

Thanks a ton @Jill DeWit - I appreciate the suggestions and I plan to act on them. Looking forward to this big first step and getting into it. The encouragement of all of you in this community is fantastic.

Thanks @Basit Siddiqi I appreciate the offer! Great advice, I do plan on meeting with a local CPA soon and that's a good question to add to the list.

Thanks for the welcome guys, and for the recommendations @Ben Miles! I’ve been checking out the local investment groups and meetings schedules. I hope to sign up soon and start connecting and learning more from the community.

Hi everyone,

My wife and I will soon be launching into the wild world of real estate with our first rental property. We've lived in the house for the past 6 years all with the goal to turn it into a rental someday, and that day's fast approaching!

We're super excited to get started, and also a little nervous. I'm reading up on several books on the hold strategy and everything I can find online. We met with a couple of property managers but we think we're going to manage it ourselves, and may change our minds later on that or if we get multiple rentals.

Our goal is to build up to several (10+) rentals long term, building up cash flow and equity over time. If we could eventually move on from the 9-5 we will, but this will be our side business for quite some time. 

I'm researching around to find a good local real estate lawyer and CPA to work with. It sounds like I'll want to get the lease and all legal docs signed off by a professional, and we'll need some accounting help to make sure we're making the best moves financially. 

We're excited to get to know this community and interact with many of you on this journey ahead. 

Thanks for any advice you'd like to offer us!

Tim & Lauren