All Forum Posts by: Troy F.

Great insight. Thank you!

Hello inspiring real-estate community,

I am considering purchasing an older home (1907) near the University of Nebraska - Lincoln campus.  The plan would be to rent by the room in a three bedroom home.  Target market are students.  Has anyone been successful in a venture such as this?  1 bedroom apts rent for $400-$600 per month.  How do I gauge what rents would be for by the room in this area?

Thanks,

Troy

I have a conversion four plex in Wisconsin which has some great long term tenants.  I am finding it difficult to respond to a particular tenants needs every day.  They call daily with questions like; do you think the other tenant's dog will hurt mine? I am missing a package..do you think someone stole it?  The heat is too high.  The heat isn't high enough.  I have a hard time balancing between responding to this tenants needs and just being a sounding board.  What is my responsibility to answer these calls?  I've started letting them go to voicemail but they never leave a voicemail so I feel compelled to answer.  I do feel responsible for the heat.  The 4 unit is heated by one furnace, controlled by one thermostat in one apartment.  I don't want them to freeze of course but I also don't feel it's right to text the other tenant daily to ask them to turn it up a notch or down a notch.

Any suggestions on how to handle this problem that only seems to be getting more consistent?

Thanks!

I've heard Brandon and David talk about having a clear tenant screening criteria.  I have a 4 unit rental property in Lincoln, NE.  I am open to accepting tenants with vouchers, or Section 8.  I am wondering what is a reasonable credit score for tenant screening?  Also, if we are accepting housing assistance vouchers is the criteria of earning three times the rent out the window?  If so, is there a reasonable alternative for how much they should earn?  

We use RentRedi to manage these units. The automatic e-mail that goes out from RentRedi for prequalification asks for W-2, tax returns, prior year tax returns, employee letters, etc.  It sounds like they are applying for a loan.  We do the background checks and talk to previous landlords and employers but these other documents seem like too much.  Does anyone else out there ask for all this documentation and is it really necessary?

As always, thanks for your input.

Hello real-estate community,

I am purchasing a conversion 4 unit this Friday in Wisconsin Dells, WI. The current landlord pays all utilities. I've heard some ideas on the BiggerPockets podcast on how to separate those utilities out to the tenants. Can anyone share some ideas on how to split up a big old house so that the tenants share their fair portion of the utilities? There is one furnace so I don't think there is any option for splitting this up. The water/sewer/trash on the other hand might be something I could split up.

Thanks,

Troy

Norb,

I've tried out of state investing with and without a manager.  With a manager you can almost forget you have a property except for those few and far between large maintenance expenses.  I found it exceptionally valuable to have a manager if your property is empty.  Taking pictures, marketing, screening tenants, and even selecting the right ones was a little stressful for me in the beginning.  Oh, and don't forget tracking expenses and income necessary to be prepared for tax time. I also noticed putting my time into these activities puts a strain on other activities such as expanding my portfolio and researching for other great deals.  However, you can absolutely do all of that without a manager.  Be prepared for the call from the little old lady who's heat has gone out and it is -17 degrees outside.  Of course this usually happens at the most inopportune time, like when your boss asks you for a new report or something is really pressing at work. I often bounce back and forth between work and real estate throughout the day.  If your property is empty and you plan to rehab you will likely spend hours tracking down good contractors for plumbing, electrical, drywall, etc. Once you have your go to contractors the process becomes almost instinctive but getting to that point takes some work. To wrap up, if you are going to go without a manager, walk through the steps you will take to get the tenant in place, collecting rent, managing maintenance, and maybe even eviction if it ever came to that. Explore the BiggerPockets Forums, review their guides on these topics and make a game plan.  

Our tenant applicant is having trouble with the rental software we are using. We are using RentRedi. Is there a free background check application?

Sorry, that last message was directed to Cody.  

Hey Sam.  I don't know much about Beaver Dam.  I haven't done any business there.  In fact, I've had a hard time finding deals in WI in 2020.  I am still looking though.  

Good to know. The security deposit does cover the rent but not late fees or the utility bill. I probably went too soft on this one. Definitely a learning experience.