All Forum Posts by: Carlos Lez

Dear fellow members,

I am seeking your help in (and possibly if you could help with docs or contracts I need the seller of a multifamily house to sign off so that a proper transfer of lease that the seller has with the tenant occurs so that it is now a lease between me (buyer of the property) and the tenant. We are trying to minimize or in the best case scenario not need the tenant to sign any paperwork.

My questions are;

1) The lease states the sellers address and specific details on where the monthly payment need to go.

2) The seller has retained a security deposit from the tenant. How will that transfer occur?

3) The closing of this sale will occur around the July 5th so it is mid month. How will the rent distribution occur?

4) When does the signing of these documents happen? Escrow?

Thanks in advance for a detailed response. I do apologize if these questions are naive, but I am doin this for the very first time. and the real estate is not helpful at all. He just says "the lease will automatically transfer at the point of sale". I want to be sure to get the right documentation in place.

My understanding is that FRB loans are portfolio loans. At one point around 5-6 years back, they were subject to protests after which they have started requiring borrowers to sign it.

My only question is does it hurt me in anyway? Attorneys in this area require a $2,500 retainer to interpret this statement!  Go figure.

I rent to students, by the room and on their own individual leases. So a 4 bedroom house has 4 people and 4 leases - they are all private rooms and single occupancy. 

It was just reported to me yesterday that one of the tenants has brought in another person and he is living with him. This is direct breach of the lease. I am seeking help on how to handle this situation. He is out of work and has been paying each month from his unemployment money albeit late. He is already playing a racism card. Please see the recent discussion here for context.

https://www.biggerpockets.com/...

With eviction moratoriums going and given the fact that his lease ends in August, I want to be careful in handling this in a way that it doesn't become costly. Any actionable suggestions would be much appreciated. The property is in San Jose, ca.

I am doing 2 refinances (duplex and triplex) both are not rent controlled and one acquisition, all in Santa Clara County. First Republic bank is asking me to sign the following statement;

"

Do you have any present intent to re-purpose the use of the Property by withdrawing any units from the residential

housing market pursuant to California Government Code Section 7060-7060.7, commonly known as the Ellis Act,

or is the Property currently under any Ellis Act restrictions?"

My questions are;

1) how will these properties be encumbered if I sign this disclosure. Am I waiving any rights under the Ellis Act by signing this? I for the near future have no intention to take these off the rental stock anytime soon. I certainly wish to retire sometime and don't want to be saddled with this.

2) Can I invoke the Ellis Act anytime in the future? Since it says this disclosure is "present intent"? Also, if I refinance with another lender in the future does the same pledge hold?

3) If I sell these properties, will the new owner be subject to the restrictions that arise from waiving this right,

Thank you all for the very useful feedback. I have these folks on their own individual leases. How do you get different individuals to agree to sign a single severally responsible lease for the entire house? I fully appreciate the benefits of a joint lease.

Please note that the resident prior to this new tenant (the one he has a conflict with) was of non-A origin (the same as the complaining tenant) which proves there is no selection bias. They completed their entire 1 year lease term and left peacefully. Now the current tenant happens to be of A origin.

So, I have a 4 bedroom house and have a student tenant in each of the rooms. This evening I received the following email where the tenant is alleging me for racial discrimination and threatening to lodge a complaint against me. I am seeking the help of fellow members to respond to this email (if you deem it necessary). If you can suggest what to write that would be great.

For context, these are student renters. It appears one person is an ultra clean freak and he retained the services of some cleaners and this other person hasn't paid his share. How am I involved in this? He is playing the racism card to tried and rope me in and I want to be sure I steer clear of this by responding appropriately.

For the sake of neutrality I will just substitute terms "person origin A" and "person origin B" in his message below:

"Your new tenant is harassing me.

I have been in contact with your office that I am going through economic hardship, which already feels invasive.

Your new tenant purchased services and I told him I will notify him when the balance can be paid and he is making my living here an unbearable nuisance.

Him feeling privileged to consistently harass me feels like it is due to me being the only person of non-A origin/heritage resident in this residence. This does not feel like equal treatment if I was the same as him.

He said you told them I was moving out and it feels like I am being pushed to moved out and am experiencing housing discrimination.

This is a notice that I’ll be submitting a complain about my living experience in your residence."

I often run into this situation where a handyman job exceeds $600 and therefore necessitates giving them a 1099. However, these people are not too excited to receive a 1099. Complicating matters further, if you hire an unlicensed professional for some odd jobs and they don't have an ITIN or SSN how do you all deduct these expenses on your schedule E taxes for investment properties?

All great comments and thanks Jim K for a very detailed exposition on the mechanics of running a C class rental. These are discussions on the maintenance and upkeep side of the business. It is even more challenging dealing with different personality types and  managing their interactions in a co-living housing situation aka several students renting rooms in a house. One has to end up donning the hat of a hostel warden!

While I agree some of this can be reduced but still there are daily items like refrigerator is leaking. Who goes and resolves that? Do you all have people lined up to attend to these kinds of items?