All Forum Posts by: Anthony Wick

I can’t imagine not making rents payable on the first. And prorate if they move into property in middle of a month. And I charge the max penalty allowable under state laws.

I wouldn’t make an offer without personally viewing each unit, and getting copies of all leases. This is especially for small properties like a duplex

First and foremost, I post in my ads; “Contact us today for a possible showing and application for credit, employment, criminal, and eviction checks”. It cuts way down on inquiries from people that are never going to qualify. I then do a preliminary check over the phone inquiring if they’d be willing to pay $40 for the application fee (using MySmartMove and explaining to them what it entails). Once I show them the unit, and they decide they’d like an application, I have them fill out a paper application wherein I check employment (usually 1 years employment in current job), income (always 3 times rent, always) landlord references, open source criminal data bases (zero felonies), and social media sites. No, I do not tell them all of this (like the social media site poking around), but I make it known these are free preliminary checks before the $40 application fee, which is the last step before renting to them. The last step checks credit report (600 minimum), criminal history, nation wide eviction history, etc. Usually the people that won’t qualify do not make an appointment for a showing once they know the process. My rents are in the $1,000 to $1,325 a month range, if that matters.

I’m curious to hear some actual numbers for reserves though. For me, my duplex has a 3 year old roof, and new furnaces/AC/hot water heaters (seller paid for these at purchase 6 months ago). My immediate thought was $5k in reserves should be good for now. But at the same time, we aren’t actually pulling any money out as our W2 jobs are doing well, so we could do more. But I was thinking anything over $5k could be set aside for the next property purchase (with reserves for that property of course). I’ve also read $10k should be reserves. But if you think about it, how many people owning their own home set aside $10k? Not many I’m guessing. Thoughts?

With 8 units, this is more tricky than just a duplex. I like the ideas of people saying give the current tenants a test run of 2-3 months. But, nobody addressed the location where you are at. Cold weather equals less moving in the winter. I wouldn't want to have MTM leases in the middle of winter. And, despite some people stating leases do not keep people from moving whenever they want, I 100% think it does. You could always give those tenants options, much like many apartment complexes do. MTM at $800 a month, 6 months at $775, 1 year at $750, for example. I give two options on my duplex. 1 year and 2 year lease prices. I have leases locked in on both options right now. 

60 days. It's written in my lease. Same if you will not renew their lease. I ask them about 70 days out, let them know their options (lease length, new rent, etc), and let them know a decision needs to be made.

Numerous comments about investors going broke in 2008. Well, if you currently have an interest only loan on all properties, with a 3 year ARM, and/or have hard money loans sitting out there at 10-15%, then yes, you're more likely to go broke and haven't learned a thing. But, are we really in those times right now? It's not difficult right now to get fixed rate loans, especially if you have 20-25% down. Now, if you have a 4% fixed rate loan, and the rents cover all your expenses, cap ex, management, etc., and cash flows several hundred a month after all that, and the market takes a hit, you still have your exact scenario of cash flowing investment property. A simplified example to be sure, and I certainly have other investments as well, but I would never take $210,000 in cash and pay off a mortgage. If that's the only way for you to have piece of mind, then yes, it's the right move for you. Just not for me.

@Nicole A. 

Well, that response to me was a bit salty. You kind of jumped the gun on assumptions. But that’s ok. My tenants pay top dollar, and I paid $175 to keep MY property from being infested by ants and bugs. And my tenants just signed a 2 year lease extension. Seems better than vacancies. And, it wasn’t a “favor”. It was business. I don’t believe cheapest is always best. I’ve learned that from going cheapest before. But that’s just my way of doing business. It’s not for everybody. 

It sounds like they are good tenants in a nice house and pay high rent. Why wouldn’t you want to A) Keep your house free of pests; and B) Keep these tenants happy? I just had the same problem at my duplex. Terminix online appt will give you $50 off. I paid $175 to get both sides of duplex done. A small price to pay to keep good tenants and to keep my property clean.

What are everybody’s mortgages at, 4-5%? I’ll take all your cash, give you 5% returns every month for cash flow, and I’ll make 10-20% on your cash. All while your tenants still pays off your mortgages.