Michele and Bruce own 8 units that are in a low-income area. They share their techniques and practices for getting quality tenants and how they deal with situations that arise.
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00:00 – 00:59 Intro: Michele and Bruce Fischer talked about a guy who ride a dirt bike all over the rental property to run away from the police.
1:00 – 2:21 Eric Worral opens up the podcast by introducing today’s guest, Michele and Bruce Fischer, also shared today’s topic which is investing in low-income housing.
2:22 – 3:34 Bruce Fischer was a commissioner in a housing authority and got involved in the neighborhood. When the market soften in 2008 and 2009, they invested in rental properties.
3:35 – 5:03 When the prices are lowest, that is the time they start buying houses. 1 property they bought is 4 BR house which cost $63,000 with rehab cost about $10,000.
5:04 – 12:09 The Fischers discussed about their great screening criteria they built over the years and how they worked with expellants, sex offenders and felonies.
12:10 – 16:33 The Fischers are not charging screening or application fees for the tenant applicants. They also discussed how they deny the applicants and what are the qualifications for the applicant to get denied.
16:34 – 20:37 They also discussed Seattle Market where there is an average rental of $2000 per month, and month to month agreement.
20:38 – 24:03 They share details on they deal with property managers and explained how was the transition in hiring property managers to manage some of their rentals. They also explained how they work with tenants who has little or sometimes no credit.
24:04 – 30:47 They also shared stories about how they got burned by some of their tenants. One take away from this story is to never get it to you personally.
30:48 – 34:59 They explained how cash for keys has been a savior for them and how they used it well for their business.
35:00 – 39:59 They also discussed how they take upfront payments with low-income properties and the structure on how they do it.
40:00 – 40:59 Eric closes the podcast and share his take away with this podcast.
Collecting Rent: Investing and Landlording in Low-Income Neighborhoods (Michele’s Book)
Google Sheet of Tenant Screening Criteria for Low Income Housing