All Forum Posts by: William J Anderson

Hello Alec, 

 Thanks for sharing your approach to tenant screening—it’s great to see how others manage this important part of the process. I’m still learning the ropes of property management, so I really appreciate the opportunity to exchange ideas.

At our property, we have a structured screening policy influenced by the Federal Fair Housing Act since our location falls under its scope. We aim to balance thoroughness with fairness to ensure compliance. Here’s how we handle applications:

• Income Verification: We require proof of income that’s at least three times the monthly rent, verified through six recent pay stubs and a detailed employment verification process. This includes contacting the applicant’s employer and speaking with their supervisor to confirm job stability, income, and reliability​. if the person has not been employed at their place of employment they would require a guarantor
• Credit Score and Debts: Applicants need a minimum credit score of 620, and while we review debts, medical debts are generally not disqualifying unless they impact overall financial health.
• Criminal History: We do review criminal history to ensure safety and security for our tenants, while remaining mindful of state and federal guidelines.
• Rental History: Positive references from past landlords, with no evictions or significant lease violations in the past five years, are essential. and we can see into the court system if they have an eviction judgement.
• Release of Information: We include a release form allowing us to verify employment and rental history directly, which helps us get a clearer picture of an applicant’s background.

This process has worked well so far, but I’m always open to improving. I’d love to hear your thoughts on striking the right balance between being thorough and adhering to fair housing practices.

Thanks again for starting this conversation—it’s incredibly valuable to learn from experienced property managers like you!

Hello Tiffani Hollis, 

Congratulations on stepping into the realestate game. I am new in the arena too. I think that rehabbing a property is no small feat, especially if you're trying to maximize your budget. A question we faced was the exact same: Should we buy used appliances or go for new ones with warranties? 

When we rehabbed one of our units for the first time, We found good success buying from a secondhand shop. They tested the appliances thoroughly and offered a one-year guarantee. This was a cost-effective way to meet our requirement of providing just a stove and refrigerator (we don’t include washers or dryers), without breaking the bank further.

But here’s the twist: If we were upgrading appliances for a long-term tenant with a stellar payment history, we might invest in brand-new appliances. A warranty can bring peace of mind, especially if the tenant values quality and reliability.

Here’s our rule of thumb:

• For budget-friendly rehabs: Used appliances from a reputable source can be a smart choice. Look for shops that test and offer guarantees.
• For valued tenants or premium units: New appliances might be worth the investment for their reliability and long-term durability.

Ultimately, your decision depends on your goals. I would think about tenant expectations and how much maintenance you’re willing to manage down the road. Either way, weigh cost, quality, and peace of mind to make the best choice for your property. All the Best!

Thank you, Scott, for your thoughtful and detailed response! Your advice about understanding the underlying accounting and how the numbers are generated is an excellent point—I can see how that would help me identify any gaps or inaccuracies in the financials.

I also really appreciate the insight on how T-12s differ based on the number of units. That perspective will help me focus on developing and reviewing statements tailored to the scale of my property. Starting with three T-12s from properties of a similar size and market is a fantastic strategy, and I’ll definitely take your suggestion of setting aside time to really dig into the details.

Thank you for the encouragement and practical tips—it’s advice I’ll take to heart as I move forward. I appreciate you sharing your expertise!

Thank you, Drew, for your thoughtful response! To clarify, my focus isn’t on analyzing T-12s for purchasing a property but rather on developing a solid T-12 for managing my property effectively and for use when I eventually sell my investment property in the future.

I want to ensure the T-12 I create is both accurate and straightforward, serving as a reliable tool for tracking performance over time and presenting the property’s financials to potential buyers down the road.

If you have any advice on key elements to include or how to structure it for these purposes, I’d greatly appreciate your insights. Thank you again for pointing me in the right direction—I’m looking forward to learning from this process!

Thank you so much for sharing your insights, Brandon! I really appreciate the emphasis on simplicity and clarity—especially the advice about keeping non-operating expenses separate from NOI. That's a great reminder of how even small details can significantly impact the way a property's value is perceived.

I’ll definitely keep this in mind as I work on formatting my T-12s and ensure they’re straightforward and professional. It’s also helpful to know that a T-12 is essentially an income statement or P&L, which gives me a clearer sense of how to approach it.

Your feedback on Yardi is interesting too—it’s good to hear that while it has its limitations, with some effort, you’ve been able to tailor the reports to suit your needs. I’m curious, have you found any specific tweaks or adjustments in Yardi that have been especially useful for presenting your T-12s to bankers or buyers?

Thanks again for the detailed response—it’s incredibly helpful!

Hi Everyone,

I’m new to the BiggerPockets community and excited to connect with all of you! A little about me: I’m a new real estate investor diving into the world of property management and eager to learn as much as I can. I’ve already realized how much there is to know, and I’m grateful for spaces like this where experienced investors share their wisdom.

Right now, I’m working on getting a better understanding of T-12s (Trailing Twelve-Month Financial Statements). I know they’re an essential tool for analyzing a property’s financial performance, but I want to ensure I’m approaching them correctly.

Could anyone share examples of what a good T-12 looks like or highlight key items I should make sure are always included? Are there any specific tips or insights you’ve found helpful when reviewing or creating a T-12?

I’m here to learn and grow, so any advice or resources you’re willing to share would be incredibly appreciated. Thank you in advance for your time and for welcoming me into this community!

Looking forward to connecting and learning from all of you.

Best regards,

@StephanieMenard, thank you for sharing your experience and for being so open about what happened. I’m so sorry you had to go through this—what a difficult and frustrating situation. As a new investor, your story is a powerful reminder of how important it is for me to be meticulous in protecting my investments. I’ll certainly take this as a lesson to leave no detail overlooked and to approach every aspect of my agreements with care. Your insight has been invaluable, and I truly appreciate it.

Hi Noah,

Thank you for your kind words about our mission at GenAlpha3 LLC! We truly believe in fostering community and providing affordable housing while maintaining a high standard of ethical management and resident well-being.

We are definitely looking into growth opportunities for our properties here in Norfolk, but we're taking a careful and steady approach to ensure we can continue delivering quality for our residents. A DSCR loan is an intriguing option, and when the time is right, I'd be happy to reach out and explore how it might align with our goals.

I appreciate your offer to chat and exchange ideas—it’s always great to connect with others who share a similar vision. I'll keep your contact handy for when we’re ready to take the next step!

Warm regards,
William Anderson
GenAlpha3 LLC

Thank you Noah. WE are certainly 

At GenAlpha3 LLC, our mission is to provide quality, affordable housing through ethical management, ensuring safety, comfort, and fairness for all residents. We aim to create a harmonious living environment by adhering to all relevant laws and fostering a community based on respect, transparency, and continuous improvement.

 Thanks Jacob