Single Family with 216 & 1007 Rent Sched

[GTM]

Single family sale. Client wants operating income and rent schedule in report.
What is the reasoning behind the request? Typically in my area, single family dwellings are not purchased for income potential. I notified client and they insist on including the forms. Any insights?

 

[Carnivore]

Single family sale. Client wants operating income and rent schedule in report.
What is the reasoning behind the request? Typically in my area, single family dwellings are not purchased for income potential. I notified client and they insist on including the forms. Any insights?

Gerald,

The client likes you and is giving you an oppurtunity to increase your income for the period.

Give them what they want, charge a fee, that would emulate into a per hour rate equal to a URAR. In otherwords if a typical URAR fee is $350.00 and takes five hours from your door to report out the door; 5 hr/350 = $70.00

216 & 1007 - 3 hours(ave) x $70 = $210 + expenses(my rent comps cost $20.00) = $230.00

This brings to end this session of Business 101. Thank you for your attention.

Thats how I do it, others may be 503c corporations and dont charge anything except for their salary (percentage used).

 

[Chris Colston]

Do like Andrew says and don't fret about why.

More than likely the property is either a rental property NOW or the buyer has indicated it will be. Perhaps the buyer is purchasing with the intent of housing a relative. It's not really important WHY the client has asked for this...just be glad they have asked at the time of the order instead of AFTER you've completed the assignment and turned it in.

 

[Scott McCallum]

Ois/rs

A rent schedule and operating income statement are frequently required for investment properties. The logic behind is to justify the cash flow for the property - often times the result of the borrower requiring the additional income to offset the additional expense of a non-owner-occupied property. The MLS in my area has a section for the reporting of rental properties, however, as most of the activity takes place by the owner of the property through newspaper or sign listings, the MLS only contains a fraction of the potential data. Our office retains a file of rental properties, as a signficant increase in the volume of investor owned/rented properties in our market area took place after the "dip" in the stock market a few years back. In addition, we also get data via noting properties and phone numbers with "For Rent" signs in the yards and calling the owner after the sign is gone. For the most part, the owners are willing the share information pertaining to the property and lease - but every so often, you'll get one that...well :new_321: . It can be a tough time, if this is your first one, or you are in an area that does not have significant rental data; but they get easier as you grow your rental database. Good luck

 

[TSBailey]

These are pretty common on investment/rental SFR properties. Just charge them a few for the work an perform the analysis.

 

[GTM]

Thanks to all for your quick replies.
Jerry

 

[jonathan asbury]

late to the party but...

The buyer most likely already has a primary res. so the lender is requiring the 216 and 1007.

I usually charge 350-375 for a 1004 and 500-525 for a 1004,1007,216
BUT

if the broker trys to pull a fast one and orders a 1004 then comes back 2 weeks later and says he needs the 216,1007 FAST! (of course)
then its an additional $350 just for the rental, income, and TRIP FEE


jonathan

 

[Ralph Baldwin]

Common request UW when cash flow from subject is needed for debt to income ratio's to qualify.

 

[Richard Carlsen]

Consider it as part of the assignment. Ours is not to determine what or why the client gets; it's to understand what the client needs. In this case, I would say sure but if I had a question, call the client and ask why the need on this particular assignment. You will most likely find that the new owned is buying it "non-owner occupied" and the income stream no becomes a concern in the lending consideration of the client.

 

[Mike Garrett RAA]

Guess I am not charging enough these days for the additional work...Usually get another $100 to do both.

Here is a tip. On my MLS I can search using the field "Occupant". Put in tenant and see what comes up. Quite often this is a good way to find sales that were rented at the time of sale. A quick call to the listing agent will reveal what the rents were. Now you have the basis for determining your GRM.