All Forum Posts by: Chris Platis

@Angelina Frascarelli thanks for commenting. Glad to hear your case was won, I’m sure that must be a relief long in the making. Curious what do you mean by more than 6 months? Can’t find anything relevant on that, other than a 6-month notice to evict in the UK (wow). Also, not sure how to prove Tenant was not impacted by Covid — I’d like to go down that road, but this NYS Hardship Declaration form (filled out by tenant) seems pretty final and doesn’t open any room to challenge. I know there are landlord groups petitioning against this in NYS but not sure if any progress. Thanks again. 

@Ariel Jeidel terrible stuff. Thank you for sharing. I'm sorry the lawyer didn't get the 30-day out in time, but I'm sure at this point the 60-day would potentially suffice if/when justice decides to wake up from this snooze. I'm worried that my 30-day may be nullified because after all of these months, tenant has now been residing over 1 year, but the 30-day was sent during less than 1-year of occupancy, and Non-Payment case should stick. We shall see, and keep hoping. 

It is a grim time indeed and I am also a bit petrified moving forward after seeing how this crisis continues to unfold. Very unfavorably. Hopefully the end is near, good luck my friend. 

@Ariel Jeidel sorry to hear, thanks for chiming in. What have you been doing legal-wise? I just want to make sure that in the event courts open up, that an eviction process would go in my favor. I tried to build two cases, Non-Renewal of Lease (which was foolishly NOT sent via certified mail but posted to tenant door) as well as 14-day Pay or Vacate (which WAS sent via certified). Now I am just sending certified Late Rent notices which are quickly piling up. 

My rent is not as high as yours, but I house-hack the property and tenant is severely disturbing my well-being, with all-day auto work, a revolving door of visitors, loud music, etc. Third unit on the property was tenant-occupied as well but tenant there very happily took a Cash for Keys proposal, and I swiftly transformed the unit into a Short-Term Rental which has been going great. Of course, non-paying tenant has been disrupting that rental as well, with complaints over noise, smoking, smells, etc. 

It's such a circus and I'm feeling so stripped of rights as a homeowner. I would be much more supportive of Hardship Declaration forms if supplementary documentation were required. My market is such that Unemployment Insurance (STILL with +$300/week) and Stimulus check payments would be able to cover rent expense, but alas a simple Hardship document is allowing people to skate through this time. I will pray along with you that at least this May 1 date does not get pushed forward. 

• Tenant is 4 months behind on rent and has stayed beyond Notice of Non-Renewal of Lease

• Tenant was served a NON-RENEWAL OF LEASE 3 months ago, followed by a certified mail 14-DAY PAY OR VACATE NOTICE, which prompted tenant to send me a certified mail HARDSHIP DECLARATION FORM from NYS. 
• I have now been sending Certified LATE RENT NOTICES each month, including full balances due.

• Tenant will not communicate with me, and had turned down a very gratuitous Cash for Keys proposal when this all started. 

What should I do at this point? Anybody else stuck in NY with this position? Local court is not accepting any new paperwork until at least May 1 (when current moratorium ends), which leaves me pretty helpless currently. 

I realize this is probably better suited to ask a lawyer and that these are very difficult and uncertain times. Wanted to ask the BP community because you've all had great insight in the past, and I also wanted to submit my experience in case somebody else is going through something similar and unsure how to proceed. Thanks all, stay well 

Hi BP! 

I have a unique home purchase scenario which has led me to the world of portfolio lending. This will be my first home purchase so I am hoping to run a few questions by you. First, I'll give a bit of insight into the deal followed by the MAIN QUESTIONS toward the bottom. I so greatly appreciate any experience, thoughts, concerns, advice on this situation.

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About the Property

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Corner lot on a dead-end street. 4-acre property with a beautiful 2400 sq. ft home on it, along with a detached mobile home which brings in $850/month in rent. I am drawn to the property for 4 reasons: 

1. The home and land are beautiful in an area that has a good amount of positive momentum building around it. I'd be proud to call the house and town my home. 
2. The home and land have great STR potential for days that I am off-property (I travel quite often for work and am extremely minimalist in material possesions. I'm very familiar with hotels and short-term rentals, and would live in the home as if it were an operating STR business)
3. The mobile home has a great rental history, is updated, and seems fairly low maintenance. The $850/month covers the property's taxes + insurance and a good portion of the main house's utilities
4. The asking price, in my opinion, does not factor in the worth/rental-income of the mobile home. If the mobile home did not exist, the home would still comp conventionally at asking price.

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About the Financing

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The mobile home has made financing tricky. Conventional lenders will not loan on it because it is a single-wide. It IS on a foundation, but even lenders that would go that far backed down once they heard single-wide. Apparently, Fannie Mae and Freddie Mac get very confused with properties that have traditional homes and mobile homes on them together.

As such, I've been pointed to several portfolio lenders. One local lender seems very forward-thinking and has offered me a 30-year loan with 10 years at a fixed rate. To my knowledge, this is referred to as a 10/1 ARM

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MAIN QUESTIONS

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• How does the community feel about portfolio loans in general? Anything particular worth noting?
• The presented 30-year portfolio loan product has 10-years fixed at 3.25% (whereas 30-year conventional is 3.75% in my market). I definitely plan on staying for at least 5 years, and am not necessarily married to owning the home for the entire 30 years. I realize an ARM like this can be beneficial if one is open to selling/refinancing prior to the fixed-rate period ending. I'm just not sure how refinancing might go considering the difficulties with financing to begin with, due to the mobile home.
• Are adjustable-rates from portfolio lenders bound by anything? Are these at all relates to FED Rates? Or can I expect the complete unexpected come year 11 (when the fixed-rate is complete)? I'm pretty worried about this as if I can envision a local portfolio lender sinking their teeth in once that fixed rate period concludes.
• Anybody have any tips on mobile home financing/re-financing in general? It may be different due to the fact that the property is not exclusively a mobiel home, but a sort-of multifamily property. 
• Do ARMs from portfolio lenders affect future lending in any considerable manner? ie. if in the future I were to approach a bank with a conventional loan for an investment property, would I be considerably tougher to approve with my portfolio ARM (as opposed to if this were a conventional loan).
• Any advice on how one would approach this longer-term? Again, I'm not sure how refinancing would look given how tricky financing already has been. Maybe remove the mobile home around year 9-10, refinance to a conventional loan, or even put back on the market then? 

Thank you all so much in advance for your time and help. Wishing the entire BP community success and happiness in its collective endeavors

-Chris

Hi @Michelle Phelan – thanks for the referral! I was sad to discover that Michael Jordan may have passed away this May –– will certainly give his partner a ring. Buying about 20 minutes SW of Kingston, in High Falls. Inspection this week, excited to see what this old home has in store!  

Thanks @J.R. Coffin ! Seems like a great guy, spent a solid hour over the phone with him and hired him for my inspection next week. Appreciate the recco – all the best your way

In the process of buying my first home! Very excited. Wondering if anybody has any referrals that they'd be willing to share for inspector and/or attorney. Thanks in advance! 

Hi BP! First-time homebuyer here. Circling in on a 2-family at about $200,000. The home needs a minimum of $50,000 in renovations. I am approved for $300,000 and will owner-occupy 1 of the units. Below are 3 loan possibilities that I am circling, I just wonder if anybody has any insight or preference. 

• FHA with 3% down PROS: low down payment, great interest rate, keeps cash in hand for renovations. CONS: PMI forever (yes I know refi is possible to get away from PMI), tougher closing process (to my knowledge), 203K renovation loan is ruled out, none of 4 lenders seem to work well with the program, only local lender that seemed excited about it approved me for way less than required.
• Conventional with 15% down PROS: No PMI forever, more equity in home, potential to bundle in with traditional renovation loan CONS: Higher interest, more upfront cost
• FANNIE MAE HomeStyle with 5% down PROS: PMI not infinite, keep cash in hand while having access to funds for renovations. CONS: unsure really as most lenders are seeming to sway me to either FHA or Conventional.

My thoughts originally were to go FHA as it is my first-time home, but I'm beginning to feel more deterred by it. I am intrigued by Fannie Mae loans but not getting as much info as I'd like on them despite shopping through multiple lenders, both local and larger. I like the seeming simplicity of a conventional loan. Assuming that I have the funds to cover the cost of renovations, I am just wondering what would be the best way to finance this home and complete the necessary renovations.

Any thoughts, advice, experience, or questions are greatly appreciated. 

Thanks! 

Chris 

Hi all, 

Wondering if anybody has a contractor recommendation for anywhere in Ulster County? I'm close to purchasing my first property. Home needs a fair bit of work, and I'm hoping to meet with a GC to give me an honest idea of renovation costs. Any help is appreciated 

Thanks

Chris