Here is a case, Please share your inputs:

the applicant and his youngest son will apply and his girlfriend probably will be always be there, even she said she has her own place. (only 5 miles away.)

His take home pay is $8,000 (round up), his monthly debts both installment and involvement is $6,000(round up), after paying the rent he has less than 500 for living expenses for two persons. (I do not know if he pays any child support, he has five kids, the youngest is graduating from sr. high in May.)

If you don't see his debts obligation that require his monthly payment, then he qualifies 3X of rent from his income.

He has less than 4,000 in his checking account, he has less than $20,000 in his 401K account after worked since 1994.

He has a new job less than 8 months, and I did not have any other info of his life (?) where, or how ...etc.

The listing agent said he is "close" to perfect.

What do you think? Should I rent it to him? I asked him to provide his son's drive license, his last three months bank statements, and 1040 IRS copies, he said he did not want to let me review it, because of the privacy issue, and identification thief.

So, what kind financial info do you ask your tenants to provide in order to qualify the lease.

Will you let me know soon.

Thanks.

It all depends on what your written criteria specifies. You should have a written criteria, but if you don't then you need to at least make sure all applicants are treated and screened equally. I personally require that the applicants make 3X the rent (gross). Some people require more, some require less. I don't delve too deeply into their personal finances because I want to just have a general rule to follow.

That sounds funny. And listing agent? Uh, huh. She gets paid when she places, yes?

For this one, you need a credit check to see if he pays his bills. The score itself may be telling.

If you've not signed up for the one through MrLL, which requires the inspection, SmartMove would be a good option.

You should NOT rent to them!

The reason why we ask for 3 times the rent in their monthly income is because:

a) People have to pay Federal Taxes, around 30%. So this applicants $8,000 monthly income after taxes is $5,600.

b) People have transportation costs: Car Payments, Insurance and Repairs -- that's on average around $600 per month.

c) Health Insurance, Food and Utilities can easily be $1,000 a month.

So based on a applicant with little to no credit card debt and no student loans, his $8000 gross income boils down to $4,000 a month. Divide that by 3 and I hope your round is around $1,000 a month.

But when an applicant has a large debt to carry each money, as stated on their credit report (minimum debt service costs), they you can see they can't afford and you can't afford to accept him.

No. He doesn't have enough income to cover his bills and the rent. I turned down a psychiatrist once for my best unit because he owned the mid six figures in debt.

Alice, the agent only gets paid when she puts a tenant in, so she will say anyone is great if it means she gets her money.

Thank you for inputs.

I agree with you all.

Yes, the father and the son brought a full house of new furniture (2400 sqft) when they moved to Texas and leased a house. The current owner wants to increase rent for another $400, so they are looking for another place.

But, he only has $4,000 in his checking account, and to show he has 401K (which is untouchable.)

Well, I do not know how people live above their means.

Thanks.

Hello,

My name is Mike Landis. I own Atlas Commercial Real Estate Services (a commercial mortgage brokerage).

I wanted to give you some information on a loan I am doing for N/O/O residential properties that can really help your owners if they want to buy more properties or refinance/restructure and get cash out from the properties they already own. Highlights include...

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3) Cash out on "true appraised value" for properties after only 30 days (75% ltv)

4) Only need a 660 credit score to qualify

5) Terms - 30 year fixed or 7/1 ARM options - 30 yr am (no balloons). Rates start at 6% (credit score driven)

6) 21 day close

7) Can blanket finance up to 7 properties into one loan

Please share this with any of your clients that may be in need of "out of the box" investor financing to help them grow and manage their portfolios.

Thanks,

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mike@atlascomres.com

www.atlascomres.com