We'll often get asked "what do you guys do with the houses you end up buying?"
My answer is "it all depends, really, on a host of factors."
So what are those 'host of factors' you ask?
When we purchase a distressed property we generally know before we even buy it what our plans are once the transaction is completed and it'll usually fall into one of four areas:
1) We'll purchase it to fix-n-flip it and resell it retail outright or as a lease option
2) We'll fix it up and rent it out
3) We'll sell it as-is to another investor and let him deal with the contractors.
4) or we'll consider renting-to-own it
In most cases, depending on our holding costs, the neighborhood, the amount of repairs required before it's move-in ready, how many bedrooms/bathrooms, basement, what are the current rental rates in the area, is the area mostly rentals or homeowners, etc helps us determine if we rent it out or sell it or lease it out as a lease option.
I'll discuss lease options and rent to own homes with bad credit in my next post.
Renting a House
For the sake of this post let's assume we're going to fix up the house and find a renter to pay the market value of what the house would generally rent for.
Can just anybody rent a house from us? Absolutely not.
We're going to want to make sure we have a mutual understanding beforehand and will ask you many questions before we decide to rent to you. We don't want one of our rental properties turning into a neighborhood crack house because of who you hang out with. Be honest and forthright because we will run a background check. We'd rather have a property stay vacant than rent it out to just anybody and end up with a problem tenant later on.
Some questions we're bound to ask you to qualify you are:
1) Are you currently working? If so, where and how long have you worked there?
2) Do you have reliable transportation? If so, what is your transportation?
3) What are your monthly expenses? Be forthright because we will check.
4) Can you afford the security deposit w/ no problem?
5) Have you ever been arrested? If so, what for?
6) Are you currently involved with any legal situation right now? If so, what is it?
7) Do you have any children? If so, what ages?
8) Do you have any pets? If so, what kind?
We are pet lovers ourselves and have no problem with pets as long as we know beforehand. We don't care for surprises only to find out later a tenant never told us and gets a rottweiler that gets no attention, no exercise or no discipline. and ends up tearing up the house and yard - understandably - only to just be tied up in the yard and barks incessantly. No neighbor wants to put up with that. So many people have NO clue how to raise a pet and it ends up becoming a burden and a nuisance. We see it time and time again. Before you get a pet get a clue.
Rent Homes in Michigan
So, what does take to rent a home in Michigan from us?
You'll need to have steady employment. Reliable transportation. A good rental history. A security deposit. Your rent generally can't be more than 1/4 of your income. All these are vital to us before we decide to rent a home to you.
Once we decide to rent a home to you you can be assured you'll get a clean, safe place you can call home and we'll do our best to make sure you're squared away if there is anything you need.