All Forum Posts by: Jordan Batchelor

>It needs more work then the other, so my plan is to do that while I live in it.  They have been there for over a year and it ends in April. Is it just cause to terminate their lease or will they be able to dispute it?

To more in yourself or close family is one of the legal reasons for no-fault lease termination.  As long as you move in for more than a token amount of time (usually considered to be a year), there should be zero issue.  In addition, if you are rehabbing the unit (which is what you indicate), a rehab extensive enough that it cannot be reasonable occupied by the tenant is another legal reason for a no fault lease termination.  So you have 2 valid reasons for a no fault lease termination.  The no fault lease termination does require you to pay the tenant one month rent.  Pay this after they have vacated the unit (by law you can forgive the last month's rent but doing so places you further in the rear if the tenant does not move out).

>the studio is far below market rent and the rental cap of 9.1% increase still lands it below market rent. I have read that if you owner occupy a duplex, rent caps do not apply. Does that sound correct?

You are mostly correct but missing one critical component. The owner must have occupied before the tenant. So the existing tenants are covered by AB1482 (rent control), but tenants that occupy after you owner occupy will not be rent controlled. However, once the ADU is 15 years old, the property from a AB1482 perspective is a triplex. At that time all tenants will be covered by AB1482 and have rent control.

Hopefully I covered all conditions from current to future.

Good luck

Hi @Jordan Batchelor This seems really complicated. I wouldn't do it on a house hack. Maybe if the intent of living together was better defined I could understand this. I would wait until I had enough for FHA or some other low down payment program before buying with a partner on a house hack.

Partnering with someone to house hack in a lower price point market can be a good way to invest in real estate without having to put a large down payment. Here are a few things to consider:

1. Choose your partner wisely. It's important to choose a partner that you trust and are comfortable working with. Consider their financial stability, experience level, and long-term goals to make sure they are a good fit.
2. Set clear terms. Be sure to put the terms of the partnership in writing, including how profits will be distributed, how decisions will be made, and what will happen if one party wants to exit the partnership.
3. Communicate openly. Good communication is key to any successful partnership. Make sure to keep each other informed about the progress of the project and address any issues that arise in a timely manner.
4. Manage risk. Investing in real estate carries inherent risks, so it's important to carefully assess the risks involved in the project and have a plan in place to mitigate them.

Overall, partnering with someone to house hack can be a good way to invest in real estate without a large down payment, but it's important to choose your partner wisely, set clear terms, and manage risk. Good luck!

@Jordan Batchelor

one of the main issues though is... who owns the properties?  if i were the house hacker i'd want to own it... so then you are just loaning money.  and if they don't own it... the owner is not living there.

that's the issue.

@Jordan Batchelor I would look into the local HH in SD. Take advantage of the new permits coming out in the STR world and do a hybrid of HH with STR. My wife and I are doing that in North park with some great numbers so far. Let me know if you want to connect more on it.

Can anyone help me understand the residence requirement and what kind of loan it's tied to? I'm sure someone has written about this on the forums. I'm looking at a 3plex in my area and am wondering what I'd technically need to do to meet the residence requirement, as well as whether there are any tips re how to manage those.

I'm sure folks have written about this stuff before, but I'm relatively new here and hoping someone can point me in the right direction!

@Jordan Batchelor interesting idea. I wonder how it would play out with lending and legal structures. I know people who house hack together on a shared property and both live there and rent other units. Spitballing some thoughts here:

1. It sounds like you are thinking about co-singing with house hackers who can't qualify on their own. Your cosigning or helping with the downpayment would be the only value I could see you adding (besides expertise and mentorship). I like the thought. You'd want to really trust and believe in the house hacker as you are tying up your credit worthiness with them. 

2. If you were a lender for the downpayment as a way to get into a house hack - then you are essentially just doing private lending. And that could help some people get into house hacks, but seems like a high risk to you, so you'd probably want to charge a decent rate to lend. Lenders lending the 95% on the house hack are probably going to want to see that downpayment loan as a "gift" so you'll have to give it a couple months ahead of time. Then work out some off the books lending terms with the buyer. Again more risk. 

I probably have buyers that would consider that co-signing option from you.