All Forum Posts by: Rob White

Hey Andre, Im looking at a triplex in Tampa, but its zoned SH-RS, as yours is. They have a duplex in the front house, and have converted the back garage into the 3rd unit. Its an off market sale, but not sure of the legality of a triplex in an area zoned SH-RS. Is a duplex even allowed in an area zoned SH-RS in Tampa? Did you learn anything I your process that might help determine if I'm going to get int trouble with this situation? Thanks!

The cash flow in the McAllen area looks promising, and there seems to be a lot of multi family units for sale (not sure if that’s a good or bad sign). Are there any specific areas within the McAllen that are better than others as far B grade neighborhoods with good cash flow? Additionally, does anyone have a property management recommendation for the area?

Aloha Daniel, which online bank did you end up selecting? Im on Maui, but my LLCs are out of state, and currently trying to figure the best online bank to select.

Thank you very much for your reply, Mike. For your Subject to deals, do you typically cancel the sellers homeowner insurance and replace it with your own landlord policy, having seller as additionally insured? Or, do you keep the seller policy and additionally create your own policy? Thus, paying two policies. Curious of which works best for you.

Most creative financing strategies for Subject to / Sub2 deals, have a workaround of avoiding the bank from knowing the sale has occurred, to avoid the due on sale clause. There seem to be very effective ways of doing this, but regardless, it is still the main risk (albeit very small) and reason some people avoid doing subject to deals, and also one of the main hurdles in selling the idea to a seller. I also understand that you can give them certain assurances where the seller will receive the house back if the buyer stops paying (a deed in lieu of foreclosure).

I have read a few BP posts from 2014-2016 of people simply letting the bank know prior to the Sub 2 sale, that they were going to takeover the payments, and the loan was not called due. Does anyone have recent experience with letting the bank know up front of the subject to sale via letter or phone call before the sale occurs? This method would obviously be less stress for all parties in the long run, assuming the bank ok'ed it. Again, I know the threat of due on sale is currently extremely low, but maybe the frequency of the due on sale clause being called may become more frequent now that interest rates have risen considerably, and subject to deals are becoming more common. 

For this reason, Im looking to see if anyone has a method they are using currently to alert the bank of their own Subject to purchases. If so: 

How are you alerting the bank?

Larger or smaller banks more accepting of Subject to?

How long to get a reply from the bank?

How often does the bank say no?

Any information would be a great help!

- Rob

Aloha All,

This is a very late reply for all the help that was given by the members above. But if someone gets into this situation, I want them to know how it was handled And they can message me anytime for tips.

So, I did let the county know that I received their letter of the $1000 a day fine for vacation renting and informed them of my issue (owning the unit, but Tentant illegally subletting unit for vacation rental unbeknownst to me). 

Maui County was understanding and the landlord tenant hotline (free) we have here gave me some tips for eviction procedures. 

Note: The hotline in Hawaii is awesome. Yes, they may be a bit bias towards the tenant a lot of the time, but the employees were livid about my tenant Vacation renting the unit when we have an affordable housing shortage.

My tenant did have several more vacation renters in the unit after I gave her the eviction, but she did agree to leave after the 45 days.

The place was trashed, so I did keep her deposit, which didn’t cover all the damage done to the unit. But, in Hawaii, you are not intitled to the deposit for the gross breach of contact alone as some friends thought. 

I assume this does and will continue to happen to many landlords because the money is so good in Vacation renting units here. Make sure your contacts are solid against sublet/vacation renting and know that you have me as a resource if needed. 

I could write another 1000 words on the back and forth between the tenant and myself, but I’ll save you the details unless you find yourself in the same situation. 

Mahalo, Rob

Aloha,

My Hawaii lease agreement states no subletting of the unit and the county zoning for the condo complex is for long term rentals only, making vacation renting illegal.

I found out my year lease tenant was vacation renting my unit for their profit, without asking me and going against the lease agreement. Along with this, I got a letter from the county saying that any vacation renting will result in a $1000 a day fine to the owner. My tenant has disregarded my demand to stop vacation renting, but agreed to "move out" in 45 days. Thus, the vacation renting continues. 

Any suggestions? I figured an option would be to let the county know of the exact situation between me and the tenant. 

Do I have any right to blatant breach of lease contract and illegal use when it comes their deposit? I don't believe so.

Thanks for your help!

Hey @Patrick Franta ! The trip was amazing, but happy to be home! 

Ive been doing a bit of research on commercial asset management, because you mentioned it, and it does seem like I would be dealing with people on a more professional level as apposed to SFR tenants and owners.

Ill be reaching out to some more people to see what the best fit is while i take my license course and have the time. I would be happy to take some of the contacts and get a better feel of whats out there.

Thank you very much for your help!  

Aloha Loren,

Thank you for the reply! That's a lot of good info for me. Couple questions from that: 

Do you know what an average PM on Maui would make as a salary per year? 

You mentioned prior experience. In your eyes, would someone like myself be employable as a PM with experience derived only from my own properties the last 3 years? I also have a bachelors in business and managed at a Wailea resort. Just not completely sure what the typcal resume for the job looks like and barriers to entry.

Thanks!