A buy and hold property can bring great long term income, but only if you get great tenants. Here’s some ways to make sure you’re selecting tenants using proper criteria.
Many investors focus on Arizona fix and flip opportunities but there is also the prospect of holding a property beyond your initial Arizona hard money loan, obtaining a traditional loan for the mortgage, and take in long term rental income.
A buy and hold property is only as good as the tenants who reside there. Your selection criteria should help you determine who is going to be a stable occupant who will be able to meet the terms of your rental contract.
Make Your Selection Parameters
Here are a couple of things you’ll need to consider when outlining your selection criteria:
· Ideal income to rent ratio
· Minimum credit score
· Background check result considerations
· Personal and rental references
Pre-Screen to Save Time
You don’t have to carefully consider every potential tenant which can waste your time and theirs. Some will show red flags straight away. Getting them on the phone and asking a few up front questions can help you narrow down who is most suited for your property. You’ll still have to run credit and background checks, but if they tell you from day one that they have less than ideal credit, you can cross them off the list.
Perform Due Diligence on Applicants
We would like to think that everyone will provide completely truthful information on an application, but that isn’t the reality. You’ll want to confirm employment and references for accuracy.
In order to obtain a buy and hold rental property it may be best to use a Arizona hard money loan prior to qualifying for a traditional loan. Hard money lenders like us can fund in as little as a week so you can get started on any rehab for the property and get tenants in as quickly as possible. Call us today to find out more about securing a Arizona hard money loan!
Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.
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