All Forum Posts by: Jeffrey Suarez

follow up to the incident. 

Tenants were grateful I fixed the window. They apologized.  

My presence I think was enough from their body language. I think it is important that you make yourself present and always check up on your properties. And get to know the neighbors. 

I did let the tenants know via text that the social worker arrived. That is the main way we communicate.

They weren't there yesterday when I was on site all day.

I will follow up with a firm email when I finish the window repair.

I know california has a bunch of tenants rights so I need to see exactly how to approach this.

Quote from @Scott Mac:

Someone in a professional government job needs a "Social Worker" (???)

You want to evict them for a broken window (???)

Turns are expensive.

I think social workers get involved when children are in the home of DV case.

Its not the broken $80 window its because if he gets arrested and loses his job he's not gonna pay me rent. 

Quote from @Bruce Woodruff:

Quote from @Scott Mac:

Someone in a professional government job needs a "Social Worker" (???)

You want to evict them for a broken window (???)

Turns are expensive.

 Turns are a huge savings compared to what else could happen. I don't get why investors are so scared of 'turns'.....

OP, I agree keep a close eye on this one. Any further issues and you know what to do. Just make sure you are in line with local laws and your lease...

 Will check. I'll be there today and have a guy helping me with work there tomorrow 

and yes DV can turn into something destructive. I could be overreacting and hopefully this is an isolated incident.

My wife's initial comment to me was:

"If someone is gonna commit murder in my home I would like an advanced notice"

Need some direction on how to deal with this. First time it's happened to me

Tenants have been in a single family home for 5 months into a 12 month lease. couple with a new baby.

yesterday neighbor messaged me about several police vehicles at my property. I drive over there to check out. I am currently working on the property big construction detached building project so I'm there several times a week anyway.

I notice a broken window, and neither of the cars there. I texted them just checking in and letting them know i saw the broken window. That I would fix right away since there is rain. This is a nice b+ / a- neighborhood and I have a moral obligation to my neighbors and friends to keep the home looking nice.

I don't think anyone got arrested. It would be an issue if the husband got arrested since he is in a professional govt job that might affect employment. 

A social worker came by while i was there and we spoke for a bit. they wouldn't give me much in detail.

California has a DV protection law but doesn't apply when both people live together.

I know s*** happens and having a baby can ne hard but my gut tells me if this happens again I evict.....if they haven't already decided to break lease 

Do the math to see if refi is actually a better deal than heloc. 

I was in the same situation you are in. 

2.85% on a 420k primary loan.

I took a fixed rate equity loan out for 6% @ 60k to fund an ADU build.

Pros:

my combined payments were still cheaper than a full refi by a lot. 

Heloc & equity loans have very little or no closing costs. 

cons:

I was only able to take out 75%LTV instead of 80% with a full refi

Quote from @Kenneth Garrett:

@Jonathan Bombaci

It’s good to start think about this now.  I don’t charge family to use it. Close friends I give a 50% discount.  I try to only let them use it in the off season when guests don’t book that often. I’m in a beach vacation market so I have an off season.  When I bought I always wanted to share with family. It’s only been a couple times when family wanted to use it.  Not a problem for me.  

 This is basically my policy as well. 

For family and close friends we just ask them to pay the cleaners, never directly. they must pay us then we pay the cleaners. We have paying guests and we have a standard of cleanliness for them that our friends may not adhere to. 

For people I really like like parents i just pay for cleaning. 

Hi,

Looking to move purchase and move into our 3rd property (most likely early next year)

We are currently renting in Orange County, and would like to buy basically in the same neighborhood once our lease is up.

Our previous home is now being rented out for basically what our mortgage payment is. 

Currently building an adu on our previous home, and will rent that when finished at a huge Cash flow once completed in the next few months. 

We also have a STR, but next year we found a solid tenant (doctor) that wants to rent it long term at a small positive cash flow.

0% credit card debt once the adu is finished, and thanks to Biden student loan for wife will be gone. 

*************************************************************************************

Pulling a heloc on the STR right now, and that will basically be our 5% down payment we need for our next owner occupied home.

I do have the option to Refi my home to come up with the 20% down payment but that wipes out the low interest rate I pay now (under3%)

Issue is that SOCAL homes are in the 600-700 range for the fixer uppers I am looking at. ( I am a contractor, fixers are up my alley)

At 8-9% interest rate the payments will be in the $4500 range.

That puts my DTI at 56% Once I factor in the rents @75% projected.

On paper I look stretched but the full rents more than cover what I need. I have a decent 401k for reserves, and enough cash for 4-5 months.

If I calculate full rents then my DTI is 51%

I want to put as little down as possible, hold onto reserves. I'm seeing that the bidding wars are gone, and sellers will be getting more hungry in the coming months to take anything other than straight cash no contingency offers. 

I see some FHA loans with 55%dti, but are those feasible with low 5% down payment? Our credit is 750plus. 

Quote from @Nicholas Coulter:

@Jeffrey Suarez Be very up front with the lease. I would say if there are multiple restrooms pick one and stick to that one. If you can do it for a short time then go into a regular lease is great. I would set a lease for the time that youll be using the electric and water then sign another completely new lease with higher price. Let me know if you have any other questions!

 good idea on the separate lease, or at least I could do a lease change in writing with a cheaper rent for a certain amount of months.

We wouldn't be using the tenant restroom, there is no need to go into the main home as the new adu is 20ft away from the main house. I would just fence off the area as if it were a construction site, and probably rent a porto potty

I am in the process of building a detached adu garage conversion, almost done with plan check. Will most likely be signed off in less than a month. 

I will be putting up the main house as a rental in the next few weeks. 

I will most likely have new tenants as construction happens. I will inform them once the home is advertised. 

How should I handle this as I will most likely need access to water and electricity? 

My idea was to offer a utility credit until construction is complete.

Have any of you run into this scenario?