Confused On Rental Application
Greetings Everyone,
I have received an interest from someone out of state for a home I have available in California. Through several emails, the person has sent me the credit check fee via paypal, filled out the application and emailed it to me, is very interested, had a bankruptcy in 2003. I am very confused about something that I have not verified yet. Through his email he stated that his employer is going to pay half the rent. I do not know all the details yet on why he is moving to California, etc. I still have to call him. He has lived at his current residence for 15 years paying $850 a month making 31K a year. The rent for the house I have is $1695. I have so many flags from his credit report, application, and emails. Has anyone ever heard of an employer paying half the rent? Very strange. I am pretty sure I will be denying his application, but just wondered if anyone has heard of employers helping with rent. Thank you in advance.
Startin an Eviction you must have a very good reason to get those children out of a home. To now the only reason i see is the cleanliness and you knew this before. If you start eviction now you will be jumping the gun . Try talking to the mother to get her stuff together so she will not have to face a posible cut off of the voucher as well as an eviction.
I have purchase all of my rental property through www.foreclosures.com. All of the property are bought at least 50% to 60% below market value. This is due to the fact that they do need repaired. I own all multi units and 2 SFRs. I have mortgages on the 2 SFRs, all of the multi units are free and clear. In most cases if there needs to be work done on the property that is cosmetic, the bank requires it to be done. I have never financed any properties to purchase personally. I do work with a lot of investors that do take out mortgages for investment properties. Most of them take out 100% investment property loans with no pre pay and once the property is fixed they refi to one loan at 80% LTV.
This is just one way of doing investment rentals. Your cash flow would depend on many things including but not limited to the following: credit, reserves, job history, debt ratio, ect. All of these would have an impact on your interest rate, which would affect your payment.
Laurie
[addsig]
That is how I started out and I think it is a good way especially if you are cash strapped. It also helped me by giving me time to read the forum and more books to determine my next move. I also gained skills by watching crews do some of my work so I have a good idea of what repairs cost and what to look for when touring investment homes. It is also best to have an idea of an appreciating area and what appraisers look for when appraising. Small things add value to your home. Again get a plan, stick to it, hibernate for 1 year and then wake up hungry!