All Forum Posts by: Brian S.

@Mary White  I recognize that was the rule.  

I contacted an HOA attorney and it looks like we are actually well-within grounds to sue the HOA board for starting to enforce old rules that haven't been previously enforced. I am going to be getting in touch with all the other investors and building a case to stop this or at the very least give more time for accommodations than 30 days.

Thanks for everybody's replies.   This is about to get interesting.  

Fortunately, I have already made my full ROI back on the unit itself. I was just worried about the value of it being hurt if I had to sell with that many other people at once.

This is a Utah property @Shazia Chiu.  It is in Murray.   

@Brie Schmidt it was in the CC&Rs when I bought the place seven years ago. One of the statutes was that they would only allow 10% renters in the complex and you had to live in it for a year first. I emailed the board when I purchased the place asking about this as there were far more renters than 10% at the time. They told me that was a rule they weren't enforcing. But now, new Property manager, new HOA board and they decide they're wanting to enforce it. I brought up my old email, and they said that was an old board and they're going to start enforcing the bylaws.

I recognize that is on me for buying the place when that was in there, I just think this is a really poor decision if even 30 of these condos hit the market at once, it is going to destroy property values.  

@Ray Harrell  They want me to provide utility bills for a year in my name, but even then they're now enforcing that only 10% of the complex can be rented out.   I just think this is a rash decision by the board in a 70 unit complex when possibly half of them could be hitting the market at once.   This just seems like a terrible idea to enforce this rule finally in such an egregious manner.

I just received a letter from a law office that is stating that my tenant has 30 days to leave the premises or they will start charging me $1000/day. They are stating because I never lived in the Condo unit myself, I am not in compliance. That the rules are you had to live in it for a year and only 10% of the complex can be rented out.

The problem is I have owned this condo for 7 years and been renting it just fine. 44/60 units in this complex are rentals. I just called the property manager and they're stating that only one of the rentals was found to be in compliance which means they're expecting 43 units to hit the market in May. The new HOA board is obviously upset there are too many renters in the complex, but this is madness. Can they really do this on an old statute that previously was never enforced? If that many units hit the market at once, we're all going to be screwed on trying to sell. Does anybody have any advice about this, or experienced something similar? I recognize I should have been going to the HOA board meetings, but I had no idea they would do something this drastic.

Thanks for your replies.    These are in my personal name, so I will definitely have to look into that @Jerry Padilla.  I currently only have 8 mortgages so I might be good for a couple more.  

I just asked the question because I feel like a 5-7% return doesn't seem that great.  Now if I calculate my return on what I have put in, it is a lot higher, but the appreciation of assets makes my return seem lower if I were to cash out.

I think you're right @Patricia Steiner,  I am putting the cart before the horse.  I just need to find a deal before I start thinking about stuff like this.   I had just ran into a colleague and we were comparing portfolios and he was telling me I was way too equity heavy which got me thinking about this whole thing in the first place.    I sometimes worry I am too passive with all this.  Appreciate the responses.

am trying to become more strategic with my real estate portfolio. Right now I have ten rentals that are paying me around $50k/year in positive cash flow after fees and expenses. About $62k per year if you include the principal of the loans being paid off.

I was analyzing my equity and realized I have around $1,000,000 in equity right now. I feel like I am not taking the most out of this opportunity as I just have a property manager that does everything and I enjoy the monthly income. I have always been a very conservative investor, putting at least 20% down on each property I acquired, but I can't help but wonder if I am leaving a lot of money on the table. Feel free to be honest or blunt with me. I want to know if I am doing this horribly wrong, haha.

What are my options right now? Should I re-finance and pull some money out for a bigger deal? Sell all my properties and start looking for something commercial? Just interested to hear what others have done that may have been in this situation or would do if they were. Thanks for any input.

I realize I posted this in the wrong category.  oops.  

I am trying to become more strategic with my real estate portfolio.   Right now I have ten rentals that are paying me around $50k/year in positive cash flow after fees and expenses.  About $62k per year if you include the principal of the loans being paid off.  

I was analyzing my equity and realized I have around $1,000,000 in equity right now.   I feel like I am not taking the most out of this opportunity as I just have a property manager that does everything and I enjoy the monthly income.  I have always been a very conservative investor, putting at least 20% down on each property I acquired, but I can't help but wonder if I am leaving a lot of money on the table.  Feel free to be honest or blunt with me.  I want to know if I am doing this horribly wrong, haha. 

What are my options right now?  Should I re-finance and pull some money out for a bigger deal?  Sell all my properties and start looking for something commercial?   Just interested to hear what others have done that may have been in this situation or would do if they were.  Thanks for any input.

@Jason Hirko, The courthouse was surprised as well when I called them.  They said this shouldn't show up on a background check or a credit check since I haven't even been able to offer a plea yet.  It all just sounds very strange.  I am hoping I will be able to clear this up when I call the Title company and it is a mistake.   I was really excited about this rental property and would hate for a wrongful charge to cancel the transaction for me.  Especially since they told me the same day my mortgage broker made my earnest money "hard".

Thank you for your reply @Jassem A. . I really appreciate your insight.  I do not have any criminal background.  Nothing more than a speeding ticket over ten years ago until the blip showed up.  I am going to call the title company today and speak with them.  I was just curious if anybody knew if this was unethical for Title Company's to do or not. 

Greetings,

I am currently in the process of purchasing a rental.  I was just notified as my contract went into underwriting that I need to clear this case I have against me before we can proceed with the mortgage by the title company. 

The issue is, this is a criminal case that I was planning on pleading not-guilty too.  I haven't even had a pre-trial yet to say that I plead not-guilty, let alone go to trial and explain my case.   I spoke with both the courthouse and my attorney and they both said this was peculiar and shouldn't be preventing me from getting a loan.  Has anybody else heard anything like this?  It just seems like being charged shouldn't be enough to prevent you from getting a loan since I haven't even made it to court yet. 

Thanks for taking the time to reply!