All Forum Posts by: Christian B.

Are you saying that there will be followup guidelines due to so many people getting laid off because of the Corona Virus?

Hi, I am a newbie who planned to get started in real estate this year; I wanted to start with an FHA loan so I can house hack. This summer I would have been employed for 2 consecutive years. As I understand it you need to be employed for at least 2 years to qualify for an FHA loan.

I have been laid off from my job due to the corona virus and I am now collecting unemployment. My boss told me that this will be temporary and that they will hire me back as soon as possible. Will this disqualify me from getting an FHA loan? I hope not, I was really looking forward to buying my first house.

As of now all my plans, real estate and other aspects of my life, are on pause while we get through this situation.

@Chris Mignone I'll contact you when I am ready.

@ Michael PInter Thank you I will contact you when I am ready to move forward.

Disclaimer:  I don't own any properties yet, I want to get started this year.  I am not a legal expert.

I noticed something wrong with the video.  At https://youtu.be/EqjsOOYjSR8?t=52 it says you won't be able to rent to your son and his family.
In the bill it says "§ 214 (G) THE LANDLORD SEEKS IN GOOD FAITH TO RECOVER POSSESSION OF A HOUSING ACCOMMODATION LOCATED IN A BUILDING CONTAINING FEWER THAN TWELVE UNITS BECAUSE OF IMMEDIATE AND COMPELLING NECESSITY FOR HIS OR HER OWN PERSONAL USE AND OCCUPANCY AS HIS OR HER PRINCIPAL RESIDENCE, OR THE PERSONAL USE AND OCCUPANCY AS PRINCIPAL RESIDENCE OF HIS OR HER SPOUSE, PARENT, CHILD, STEPCHILD, FATHER-IN-LAW OR MOTHER-IN-LAW, WHEN NO OTHER SUITABLE HOUSING ACCOMMODATION IN SUCH BUILDING IS AVAILABLE. THIS PARAGRAPH SHALL PERMIT RECOVERY OF ONLY ONE HOUSING ACCOMMODATION AND SHALL NOT APPLY TO A HOUSING ACCOMMODATION OCCUPIED BY A TENANT WHO IS SIXTY-TWO YEARS OF AGE OR OLDER OR WHO IS A DISABLED PERSON;"  So you can evict one tenant to allow a family member to live in the property.  I suppose you can use this as a loop hole to get rid of tenants by renting to family members on short leases then stop leasing to them to get new tenants.

Another thing I noticed in the video:  https://youtu.be/EqjsOOYjSR8?t=66 says the rent would be capped.  The bill says "§ 214 (A) THE TENANT HAS FAILED TO PAY RENT DUE AND OWING, PROVIDED HOWEVER THAT THE RENT DUE AND OWING, OR ANY PART THEREOF, DID NOT RESULT FROM A RENT INCREASE WHICH IS UNCONSCIONABLE OR IMPOSED FOR THE PURPOSE OF CIRCUMVENTING THE INTENT OF THIS ARTICLE. IN DETERMINING WHETHER ALL OR PART OF THE RENT DUE AND OWING IS THE RESULT OF AN UNCONSCIONABLE RENT INCREASE, IT SHALL BE A REBUTTABLE PRESUMPTION THAT THE RENT FOR A DWELLING NOT PROTECTED BY RENT REGULATION IS UNCONSCIONABLE IF SAID RENT HAS BEEN INCREASED IN ANY CALENDAR YEAR BY A PERCENTAGE EXCEEDING ONE AND ONE-HALF TIMES THE ANNUAL PERCENTAGE CHANGE IN THE CONSUMER PRICE INDEX FOR THE REGION IN WHICH THE HOUSING ACCOMMODATION IS LOCATED, AS ESTABLISHED THE AUGUST PRECEDING THE CALENDAR YEAR IN QUESTION;"  This sounds like you can still increase rent but it will based on change in CPI for the area.  I don't have any renting experience but it seems reasonable.  I am not an economics expert but CPI is one way of measuring inflation and deflation.  According to the bill you can increase rent rates by 1.5% if CPI goes up by 1%.  So as long as regional prices (what CPI measures) and in relation average salaries/wages (more pay = able to pay higher prices) are going up, the landlord can continue to raise prices.

Another thing I noticed in the bill:  "§ 214 (B) THE TENANT IS VIOLATING A SUBSTANTIAL OBLIGATION OF HIS OR HER TENANCY, OTHER THAN THE OBLIGATION TO SURRENDER POSSESSION, AND HAS FAILED TO CURE SUCH VIOLATION AFTER WRITTEN NOTICE THAT THE VIOLATION CEASE WITHIN TEN DAYS OF RECEIPT OF SUCH WRITTEN NOTICE, PROVIDED HOWEVER, THAT THE OBLIGATION OF TENANCY FOR WHICH VIOLATION IS CLAIMED WAS NOT IMPOSED FOR THE PURPOSE OF CIRCUMVENTING THE INTENT OF THIS ARTICLE;"  This sounds like if the tenant violates the lease agreement and does not fix it within 10 days of notice you can evict.

"§ 214 (C) THE TENANT IS COMMITTING_OR PERMITTING A NUISANCE IN SUCH HOUSING ACCOMMODATION, OR IS MALICIOUSLY OR BY REASON OF NEGLIGENCE DAMAGING THE HOUSING ACCOMMODATION; OR THE TENANT'S CONDUCT IS SUCH AS TO INTERFERE WITH THE COMFORT OF THE LANDLORD OR OTHER TENANTS OR OCCUPANTS OF THE SAME OR ADJACENT BUILDINGS OR STRUCTURES;"  So if your property is losing value because of the tenant you can evict.

"§ 214 (F) THE TENANT HAS UNREASONABLY REFUSED THE LANDLORD ACCESS TO THE HOUSING ACCOMMODATION FOR THE PURPOSE OF MAKING NECESSARY REPAIRS OR IMPROVEMENTS REQUIRED BY LAW OR FOR THE PURPOSE OF SHOWING THE HOUSING ACCOMMODATION TO A PROSPECTIVE PURCHASER, MORTGAGEE OR OTHER PERSON HAVING A LEGITIMATE INTEREST THEREIN;"  If your trying to sell the tenant has to let you in for repairs or you can evict.

"§ 214 (H) THE LANDLORD SEEKS IN GOOD FAITH TO RECOVER POSSESSION OF ANY OR ALL HOUSING ACCOMMODATIONS LOCATED IN A BUILDING WITH LESS THAN FIVE UNITS TO PERSONALLY OCCUPY SUCH HOUSING ACCOMMODATIONS AS HIS OR HER PRINCIPAL RESIDENCE."  Want to evict all of them?  Move in.

https://youtu.be/EqjsOOYjSR8?t=73 says that you won't be able to sell the building because no one would finance a building with "lease for life" tenants, but the bill still allow the landlord to evict the problem tenants.  Only the good tenants should be able to legally exercise their right for "lease for life," and because they are good tenants why would you want to get rid of them or why would a bank not want to finance a building filled with good tenants who take care of the property, follow the conditions of the lease, and pay on time?

I'm no legal expert but that is my understanding of this bill.  The video series you put up seems a little misleading.  I am not a landlord yet but this bill doesn't seem too unreasonable.  It sounds like the bill is still protecting the landlord from bad tenants.  Like I said I have no experience landlording yet but if the tenants aren't bad, why would you want to get rid of them? The only thing I don't like is not being able to raise prices as you wish.  I understand the concerns a new law will cause but this doesn't seem bad.  If I am wrong somewhere please correct me.

@Adam Leitman Bailey Thank you for response.  Can you explain how a high tax rate is advantageous?

So if I am the borrower I have to live in the house and if she is the co-signor she doesn't have to?  Am I reading this correctly?  If she were the borrower then she has to live in the house and if I am the co-signor I don't have to live in the house?

Also thank you for answering some of my questions, they really helped me a lot.

@Michael Carbonare and @Remington Lyman Thank you for your advice.

I am a newbie to real estate and I want to get started this year. I want to try house hacking and using an FHA loan. I want to invest in Long Island, NY, but the prices are so high with most houses above $200,000.

I want to use an FHA loan to get started because of it's low down payment requirement.

I learned that I need to have stable employment for at least 2 years, which I will reach this year. Will I be less likely to qualify because I just reached 2 years?

My credit score is 786 and 791 according to Credit Karma so I hope that works in my favor. I don't make a lot of money but I have a relative who makes more money than I do who is willing to help pay for the down payment and help pay for the mortgage for when we don't have tenants or when the rent doesn't cover the mortgage.

I suppose she will be like my investor. She is interested in using real estate for supplemental income. She doesn't show interest in finding the properties but she has money. I will do the work in finding and buying properties; fixing up the properties; filling the properties; and working and communicating with everyone in the real estate business.

I assume my low annual income will reduce my chances for getting the loan. Can I add my relative to the loan or let the lender know that I want the loan in my name but my relative will help with the down payment and mortgage payments? My relative just finished college and will not have been employed for a year when I do reach 2 years of steady employment. Will that affect my chances of getting a loan?

I would also like to know if it is worth it to use the FHA loan and have the mortgage insurance or to instead try to reach the 20% down payment.

Does the mortgage insurance count towards paying off the loan?

I don't see where I can add the mortgage insurance in the Rental Property Calculator, can someone show me where it is?

Is there a way to compare the same rental property with different scenarios: one with a 3.5% down payment and mortgage insurance, and the other with a 20% down payment and no mortgage insurance?

@JJ GONZALEZ II and @Remington Lyman what would be the best way to get started in long distance investing?  I'm not sure how to work with people without actually meeting them in person and developing trust in them especially when it comes to thousands of dollars.