[S2000]

Very good info there Jessica!

Some links I use for tenants checks –
Background case lookup - Case Look-up I like to check criminal and small claims here.
Online information regarding rules for Landlord/Tenants – (A MUST READ) Connecticut Law About Landlord/Tenant Law
Tenant/Landlord rules - Landlord/Tenant/Housing Frequently Asked Questions
Tenant/Landlord Responsibilities - http://www.jud.ct.gov/Publications/hm031.pdf
Eviction process - http://www.jud.ct.gov/Publications/hm014.pdf
Statutes - TITLE 47a* LANDLORD AND TENANT (http://www.cga.ct.gov/2009/pub/title47a.htm - broken link)
CT General Statute: Title 47a/
Chapter 830 (§47a-1 to §47a-74)
Rent issues: §47a-3a, §47a-15a, §47a-4a(8)
Security deposit: §47a-21, §47a-22a
Nonpayment of rent: §47a-15a, §47-23
Breach of lease: §47a-15
Withholding of rent: §47a-14a, §47a-14h
Repair and deduct: §47a-13
Access by landlord: §47a-16 to §47a-16a
Retaliation by landlord: §47a-20, §47a-33
Abandoned property: §47a-11b, §47a-42

It’s a balance of security and having a nice place but at same time it’s a business and can’t be personal. I have to fret with this all the time with my properties. All you have to ensure is:
Landlord's responsibilities/Tenant's rights:

• A clean apartment when the tenant moves in;
• Clean common areas (hallways, stairs, yards, entryways);
• Well lit hallways and entryways; and,
• Properly working plumbing and heating (both hot and cold running water).

For any questions on this call the local housing code office where you eventually buy into.

Hope this helps.

[S2000]

Originally Posted by jaylude

While I can certainly appreciate why this can be true for all the reasons you had stated, the property owner is still earning equity even when only breaking even on costs, correct? While not liquid, this would still allow him/her to use equity extraction via loans to further expand a portfolio or make investments elsewhere. It would be great to keep a positive cash from the rental property right off the bat, but I would think earning equity alone as still a positive outcome.

Jay, you still need some positive cash flow. Banks won't even look at you if you don't. Nowadays they are asking for like 30% down as well. The whole leverage the equity deal is so yesterday.

Here are some baseline metrics you can use that was given to me:

Typical Values- Bootcamp Rules of Thumb
Property Types Price/Door Cap Rate Mkt Cycle COCR
“A” – Built in last 10 yrs; white collar; path of progress $75k+ 7% BM1 15%+
“B” – Built in last 20 yrs: mix white/blue collar; $35-75k 8-9% SM1 15%+
“C” – Last 30 yrs; mostly blue/collar; lots of Section-8’s $15-35k 10-11% SM2 20%+
“D” – Last 40+ yrs; never re-habbed. $1-15k 12+% BM2 10%+

[JayCT]

Originally Posted by S2000

Jay, you still need some positive cash flow. Banks won't even look at you if you don't. Nowadays they are asking for like 30% down as well. The whole leverage the equity deal is so yesterday.

Here are some baseline metrics you can use that was given to me:

Typical Values- Bootcamp Rules of Thumb
Property Types Price/Door Cap Rate Mkt Cycle COCR
“A” – Built in last 10 yrs; white collar; path of progress $75k+ 7% BM1 15%+
“B” – Built in last 20 yrs: mix white/blue collar; $35-75k 8-9% SM1 15%+
“C” – Last 30 yrs; mostly blue/collar; lots of Section-8’s $15-35k 10-11% SM2 20%+
“D” – Last 40+ yrs; never re-habbed. $1-15k 12+% BM2 10%+

Can you explain these further? Jay

[S2000]

Hey Jay, sorry for late response. I don't browse this forum all to much. Those metrics are what was given to me by an old friend in the real estate game a long time. Those A through D scenarios are for types of properties you should strive for.

For instance an "A" property would be one that was built with in 10yrs. With a Price to Door of no more than $75k. A cap rate of at least 7% or more. BM1 - Property in a Big Market. At least Cash on Cash Return of 15%.