All Forum Posts by: Jimmy S.

When a potential tenant turns in a application how much of a deposit should I get? If accepted it will be applied to first month rent or how does everyone else do it?  I also don't charge a fee which I tend to believe I should.

I never use to get a deposit but I am finding that I am only hurting myself by allowing that tenant to continue to shop for homes while there application is under review.

Thanks

you should not have to if you have $0 balance.  I know the way they, underwriting qualifys you is to assume you will max it out and can afford that payment. 

this is off there website

https://www.fanniemae.com/content/guide/selling/b3/3.1/08.html

In order for the lender to determine qualifying rental income, the lender must determine whether or not the rental property was in service for the entire tax year or only a portion of the year. In some situations, the lender’s analysis may determine that using alternative rental income calculations or using lease agreements to calculate income are more appropriate methods for calculating the qualifying income from rental properties. This policy may be applied to refinances of a subject rental property or to other rental properties owned by the borrower.

If the borrower is able to document (per the table below) that the rental property was not in service the previous tax year, or was in service for only a portion of the previous tax year, the lender may determine qualifying rental income by using

• Schedule E income and expenses, and annualizing the income (or loss) calculation; or
• fully executed lease agreement(s) to determine the gross rental income to be used in the net rental income (or loss) calculation.

If ...

Then ...

the property was acquired during or subsequent to the most recent tax filing year, the lender must confirm the purchase date using the HUD-1 Settlement Statement or other documentation.

• If acquired during the year, Schedule E (Fair Rental Days) must confirm a partial year rental income and expenses (depending on when the unit was in service as a rental).
• If acquired after the last tax filing year, Schedule E will not reflect rental income or expenses for this property.

the rental property was out of service for an extended period,

• Schedule E will reflect the costs for renovation or rehabilitation as repair expenses. Additional documentation may be required to ensure that the expenses support a significant renovation that supports the amount of time that the rental property was out of service.
• Schedule E (Fair Rental Days) will confirm the number of days that the rental unit was in service, which must support the unit being out of service for all or a portion of the year.

the lender determines that some other situation warrants an exception to use a lease agreement, the lender must provide an explanation and justification in the loan file.

Long story short............. under my schedule e he put 365 days fair rental days when I purchased the property 8/20/14 and was really only like 120ish fair rental days. Now I cant use any of that income under Fannie Mays guidelines. I called my accountant right away when I found this out and he stated it had to be done that way because of new program or something the irs is using, taxes would not allocate properly or something. It has to say 365 fair rental days or I could not file my taxes properly. He tried explaining it to me but confused me.

Now my loan is falling though because they wont use that income and underwriters will not even look a the settlement sheet for poof that it is a glitch in the system... underwriter said to refile taxes and amend the return but loan is denied because of this and THIS HAPPENED 1 DAY BEFORE CLOSING after title work and appraisal is done.

 Just one check and only her name. He was not on it.

Should the check be made payable to everyone who signed the lease? Boyfriend and girlfriend signed the lease. When I return the security deposit should I make it payable to both of them or just either one?

thanks

I have evicted a tenant got a judgement from the court. I know I probably wont have any luck but is it worth it to turn it over to collection agency if they can collect anything?

How do I find a collection agency that will do it for free and just take a % of money collected. I never had to do this before...

Thanks

Talked to neighbors and they will sign it over to me for $1 but I will be stuck paying the $700 title work and county fees. 

 This house and garage was the first house in the area before the neighborhood was even built which is how the property got landlocked and a easement put in place. The developer of the neighborhood put all the homes and could not landlocked that property so an easement was put in place in 2010 to allow access to the garage and house. The easement will always exist but is a separate from the deeded "vanant land lot" the garage sits on..

 Thanks

I did google but it still did not state about a structure, only fences and other small items.