All Forum Posts by: John T.

More information is needed.

1.  What is your goal through RE investing?

2. What is your financial position?

Hello BP,

Trying to figure out what my local law says for lease termination, vacating, and evictions. See below excerpt:

48401. Noncompliance with Rental Agreement; Failure to

Pay Rent.

(a) Except as provided in this Act, if there is

noncompliance by the tenant with the rental agreement or

noncompliance with § 48204 affecting health and safety, the

landlord may deliver a written notice to the tenant specifying the

acts and omissions constituting the breach, and that the rental

agreement will terminate upon a date not less than five (5) days

after receipt of the notice unless otherwise agreed in writing by

landlord and tenant. If the breach is not remedied within the five

(5) days, the rental agreement shall terminate as provided in the

notice subject to the following: If the breach is remediable by

repairs or the payment of damages or otherwise and the tenant

adequately remedies the breach before the date specified in the

notice, the rental agreement shall not terminate.

(b) If rent is unpaid when due and the tenant fails to pay

rent five (5) days after written notice by the landlord of

nonpayment and his intention to terminate the rental agreement

if the rent is not paid within that period, the landlord may

terminate the rental agreement thirty (30) days after receipt of

notice.

(c) Except as provided in this Act, the landlord may

recover actual damages and obtain injunctive relief for

noncompliance by the tenant with the rental agreement or with §

48204 of this Chapter. If the tenant’s noncompliance is willful,

the landlord may recover reasonable attorney’s fees.

Does this mean that a non paying tenant has 30 days to stay in unit after non payment? When can eviction be filed? When does lease actually end?

@Albert Bui Thanks so much Albert!

@Albert Bui So if our primary has never generated rental income on tax returns, they can only use projected rent in the offset calculation upon renting it at move out? Did I understand that correctly? I'm sorry if I sound like a slower learner haha.

@Albert Bui Again, thanks so much for your time and valuable insight.

Last thing...CAN we include projected/anticipated rent from my current residence upon moving to the 4plex at any point in the loan app process? Whether it be for DTI or offsetting a mortgage?

@John Remington Property is located in Guam. Willing to talk if you offer services here.

@Albert Bui Thanks, Albert.

I spoke with the lender today, said he's willing to put the application through but it would only be a "referred(preferred?) Eligible" instead of an approved eligible for a VA loan. Not exactly sure what that means. But is there any particular strategies we can use to package the loan in a way that would be favorable to an underwriter....considering all that was shared in the OP? Rent comp for my current residence? Listing our primary/leasing it in advance? Any way to show the underwriter that..."yeah the DTI is too high...but X, Y, and Z are good indicators of success?"

@Albert Bui Thanks for the insight, Albert.

In your opinion, if we chose to submit our app anyway, how likely would the underwriter consider the rent from the 3 units and the rent from our primary res (upon move out) in consideration of a VA loan?

@Eric C. Thanks Eric. I have exhausted 90% of the banks represented on island. Will make more calls this week. Thanks!

VA loan qualified. 3 years landlording (tax return) experience. Looking at a 4-plex to owner-occupy. Our DTI is too high, bank is saying the subject property is roughly 100K over our borrowing power. We have about 130K liquid from a property we sold last year. The bank won't consider the rent from 3 of the 4 units nor rent from our SFR primary residence (which we plan to rent when we move out) to offset our income as it is only considered "projected." Although we would be living for free in the 4-plex if this deal went through (3 units pay 4plex PITI and primary house rent pays its own PITI), we can't seem to make it work in the banks eyes.

We have no qualms using majority or all of our cash in the deal, but it would defeat the purpose of leveraging the VA loan. We would also need to have 6 months reserves.

Any thoughts on how to get from point A (abovementioned) to point B (living in 1 unit at the 4plex with our house rented)?

Thanks for any insight.