All Forum Posts by: Amy Thatcher

@Joshua Baker brilliant suggestion. I had never heard of the Garn-St. Germain Law. I looked into it and learned, as well, of recent CFPB (Consumer Financial Protection Bureau) rules that further clarify what can and cannot be done. Assuming the loan would be great, no fees, and if I am able to get a HELOC on the equity to BRRRR a new property, payoff and repeat it will be the ideal solution. Thank you.

Interestingly, as I said i spoke with three other lenders who never mentioned that Law.

Thanks for all the ideas. To ensure I understand them all they are

1. Consult a real estate attorney to see if it may be assumable under the circumstances. (Then I could add a HELOC)

2. Sell the property and invest in alternate investment.

3. Seek and qualify for a new mortgage  then pay off the old once it is approved. (Would they accept my rental history on the house even though I don't hold the mortgage?  It is on all my taxes)

@Melvin List a second opinion on?  

My father purchased a home with a mortgage in 2005 (I had recently divorced and my finances would not enable me to secure the mortgage).  He then added me via a quitclaim with Joint Survivorship. Since that time I have made all the mortgage payments and maintained the home.  In 2010, I purchased another home for my primary residence and began renting the original home.  The home is a 3/2 and rents currently for 1500.00 (the monthly payment including P&I, insurance and taxes is 1150.).  The mortgage is a 30 year fixed at 5.75% with a remaining balance of 94k.  Conservatively, the home value is 190k.  

My father passed away 6 years ago and I have continued to pay everything as usual. I have not cleared his name from the title because I did not want to risk the bank calling the loan (it is not assumable). I would like to remove some of the equity in the home to use in another investment (I have 2 other rental properties at this point that I paid cash for and am rehabbing with the intent of refinancing. I have spoken with 3 mortgage lenders about this situation and none of them could give me direction in how to proceed. I cannot get a HELOC because I do not hold the first mortgage. Would it be a refinance even though I did finance initially? Please share your wisdom, ideas and advice on how I can best hold the rental and retrieve some of my equity to reinvest. Thank you!

@Joel Owens There was nothing signed at purchase.  They were living there month to month, which I was fine with because they underpay for the rental.  I factored in rehab money to clean and upgrade their unit when they left. My goal was to rent the other side first, which is done.  Thank you for the information and the new term 'snowballing'. 

@Mark Fries I was using hyperbole related to a three day notice.  I have never had to evict anyone,  guess my tenant screenings skills are sharp.

Thank you for all the great feedback. To clarify, a 15 day notice in FL rarely means they leave in 15 days.  Our eviction process here starts with a 3 day notice and 2 months later it may be resolved. @Nathan Gesner that is my current path, I think I will stay the course.

@Patti Robertson I understand having a heart, there is back story I didn't share. I have also spent weekends working on the property while the fellow complains repeatedly about having to work 4 days in a row. Where I come from you work and take care of your family, where I come from people usually work at least five days in a row

@James Wise well said, the key being 'the moment that it makes financial sense to do so'.

Make it a great day!

It sounds like the neighborhood is not going to have any issue with the chickens.  Talk with the tenants about their chicken plans (If they start with peeps they will need to be inside under a light for a few weeks).  If they have a safe spot for them to roost and they keep it to a small number there is not much work involved.  Plus your grass gets tilled and fertilized and the bug population stays down!  Cluck it!

Although I heard time and time again not to rent to friends or family I did it anyway because I saw how well they cared for the places they lived in the previous 9 years.  My family lived in my house at below market rent, did not care for the yard, had several cats, dumped used cat litter in the back yard and let the roof leak for two years for starters!  I would never have imagined how bad it could be.  Never, ever, EVER again!!

I recently (late Sept. 2018) purchased a duplex in FL. The property was fairly run down, i.e. overgrown yard, the occupied unit has window coverings consisting of aluminum foil and/or bed sheets/blankets, additionally, there is work that could certainly improve the unit, although the tenants expressed no concerns to previous owner or to me when I took over.  Basically, it is filthy, smelly and difficult to tell what the apartment actually looks like. Their side, 2/1, was rented for 700 with landlord paying electric.  (The story was the tenants were there for 5 years and always paid their rent the first of the month.) The other side was vacant and in need of some TLC.  During the purchase process I mentioned to the owner I would be having tenants pay their own electric and I thought the rent was low.  She apparently relayed this to the tenant because the existing tenant moved the electric into their name (the previous owner let them keep the deposit with the electric company) and agreed to pay 725.00.  I did NOT sign a lease with the tenant and there was no existing lease when I took ownership.  (I was also under the impression it was a couple and two children, since that point a mother of the female tenant has been revealed as living there).  I have been working on improving the property and have a tenant moving into the vacant side next week.  That side is a 1/1.  The rent is 750.00 plus electric.  

The existing tenants paid 725.00 the first week of October. The beginning of November they paid 600.00 requesting a week to pay the balance of 125.00 (by Nov. 10th).  I agreed. I asked on the 18th if they had the balance of the rent and was told no (mother's social security issue).  I have not received or been contacted about the rent balance and in less than a week another month will be due.

Since there is no lease, I believe I can provide them with a 15 day notice to vacate.  I do not want to continue with rent issues and prefer to improve the overall property.  My dilemma is timing.  I would greatly appreciate input from readers on the best way to proceed.  I am inclined to give them a 15 day notice this weekend and allow them to stay through the end of the years provided they pay, in full, the rent for December and remainder of November.  Personally, my thoughts are conflicted because of the two young children and elderly mother, despite knowing this is a business and they are responsible for their actions.  Thank you!!

@Junior Cervila that sounds like a great idea. PM me and we can set it up.