All Forum Posts by: Walt Dockery

If you're really 25% under market and they can't afford a 7% increase I think you're better off turning the unit over and finding a tenant who qualifies at market rent.  

when I moved last year, I bought a smaller house to live in while we were in between houses (so we didn't have to rush on a more permanent home purchase and get in the school zone we wanted asap), it was less than 1/4 of the price of the house we were previously living in. I got an owner occupied mortgage ... my mortgage broker did say lenders get suspicious when they see a significant downsizing like that, he wrote a brief letter that he had me sign of explanation explaining the situation and stating it was my intent to live there. I ended up living there 6 mos and kept it as a rental. I did put 20% down on it but not sure what that has to with the real issue which is the lenders don't believe you intend to live there. 

What does it say about our society when downsizing is somehow suspicious?  If you really do intend to live there, I'd keep looking for a lender who's ok with it, I would think a good letter of explanation should suffice. 

These people need to go regardless. 

If this is a garage apartment type thing at your own house, have you considered short term rentals ie Airbnb?  Once this tenant is gone obviously. 

I would evict since they clearly violated lease and lied to you (as suggested confirm it first) and going forward decide if you want pets or not but definitely no outdoor dogs (outdoor cats maybe?)

Unless it's a farm or some other working application, dogs do not belong outdoors full time. 

I like ally bank. They are online but pay good (relatively speaking) interest rates in checking and savings accounts.  We have our rental accounts there. 

What's that have to do with who pays the listing agent?

Proof of income is useful for screening, you are past the screening phase, there is no point in asking for it now. They either pay rent on time or they don't. 

Find a new bank that's ridiculous. 

As others have said, why on earth would a tenant agree to pay YOUR agent?  If I'm a potential tenant, unless it's an area w/ a severe housing shortage no way am I paying your agent, no way would I even entertain your property after hearing that, it would be an immediate deal breaker.

IMO if you want to use an agent, you pay them.  But if you live in the area and are able to I think you should strongly consider listing it yourself, as @Curt Smith said you will gain valuable experience and you are motivated to get a good tenant, an agent is incentivised to get the place filled and get his fee.  Read the ultimate tenant screening and how to rent your home guides stickied at the top of this forum.

also on the topic of CDs, ally has a "no penalty" CD currently yielding 1.5% for an 11 mo (but again can access your money sooner w/o penalty).  

Ordinarily I don't bother with CDs as their interest rates aren't enough to justify locking up my money, but I have my emergency fund in this product as the cash is still accessible w/o penalty, and rates are as good as most standard CDs. Not that 1.5% is anything to write home about, but the reality is we're living in a near zero interest rate yield. 

If rates weren't so low I'd consider putting reserves in a bond fund, but I don't want to bear the interest rate risk for such a paltry yield.