All Forum Posts by: Kevin P.

Quote from @Kevin P.:

Mario, anywhere where the taxes are $14,000 a year does not sound like a rental market. Although there are many places around that rent for higher prices I limit myself to those $2,500 or less per month. Those are not with the taxes that you're talking about. Generally they're $8,000 or less. These are just better rental markets. It's also more reasonable if for some reason the tenant is not paying. Ideally I buy around $250,000 with an after repair value of around $325,000. At this time it's harder to find a deal like that but I can find something close to it. Then I refinance and do it again. I barely even think about the interest rate. It's just one factor. In this time of rising interest rates the current rates are going to look pretty good next year. Think of it as a hedge against inflation for all that capital you've saved. Good luck.

 Where in NJ ? Im guessing south jersey no? Im talking about house hacking a primary. NJ for a rental i feel isnt good since the state favors tenants and deals are very hard to find which is why im looking to go out of state for a rental or 2 instead of buying a primary for a house hack in north jersey 

Quote from @Jesse Kindra:

@Account Closed - Hi Mike thanks for the response. It's Chapter 13. I believe it's a first time filer and they have counsel. I don't know much more than that.

I guess I will have to wait for my PM's attorney to provide some advice.

 With a Chapt 13 they are supposed to put together a repayment schedule. They have 60 months of payments to pay everything back but a court will rarely go more than 36 - 48 months so that there is buffer in the event they start missing payments.  

So, realistically, let's say they missed 5 payments of $1000 so that is $5000 divided by 36 months & is $138.89 per month along with the normal payment of $1000 that you are supposed to get. So, under court order, when it is all confirmed (approved), which should take two maybe three months, you would start getting the $138.89. They are supposed to start making the $1,000 payments again right away but you may need to get your attorney to write up the order for the judge to get that started. It gets tricky since until the plan is confirmed, the trustee holds on to the payments the bankrupt (the term used in court) makes to the trustee. 

You want to ask the court to have the bankrupt make payments "outside of the plan" so you can start getting your payments sooner. If there are no other creditors that challenge your request, the judge may grant your request.

Each time your attorney files a motion for you, expect to pay about $500 to the attorney. Yikes! There's no justice in this for the creditor (you).

 Here is some exciting (yawn) news for you: The average chapter 13 costs the filer $3,361 in attorney fees and $1,965 for Trustee's fees. So, the filer spends about $5,326 to ruin their credit for 7 years. That ruined credit means higher payments on future loans and future insurance not to mention being under court control for 3 to 4 years. 

Someone must really hate their landlord to do that to themselves. 

Instead of doing all that, I sell 9 pound hammers for $25 that they can buy and slam into their big toe and the pain only lasts a few weeks. Plus, my $25 hammer is a lot cheaper than the path they have taken.

First time poster... long time lurker

I am from Indiana and have slowly started purchasing single family rentals over the past few years.  Have had great luck finding very affordable properties and tenants so far....  Until now.....

I recently received a chapter 13 bankruptcy notice from a problem tenant.  Tenant has slow paid and I have had to 10 day notice several times in the past couple months.  Each time rent and late fees were brought current prior to end of notice period. At the time of bankruptcy notice (February) the tenant was current and had no outstanding rent.  I have since heard nothing from the tenant regarding March rent and looking for advice on how to proceed. I have not attempted to contact tenant due to bankruptcy filing and unsure of next steps.  I have attempted to contact tenants lawyer several times to find out their intentions but he does not seem to want to call me back. Add in the COVID19 complicating factor and I’m in a bit of a pickle :).  I can confirm that the tenants employment has not been affected by mandatory closures.  Help???  Advice???

 

@Account Closed - Hi Mike thanks for the response. It's Chapter 13. I believe it's a first time filer and they have counsel. I don't know much more than that.

I guess I will have to wait for my PM's attorney to provide some advice.

Quote from @Cody O'Connor:

Hi Everyone - I am looking to do my first house hack in New Jersey. I want to purchase a multifamily unit that has one 3/3 and one 3/2. My understanding is that I would be able to do this with 5% down, but I just got off the phone with a lender who told me that I needed to put down 15%-20% minimum. Can anyone confirm if this is correct?

Additionally, would I be able to use projected rental income to help qualify? 

Thanks! 

In the current seller’s market going FHA with your offer is challenging. You can still do 5% down conventional financing provided your income is at or below the property the average median income for that area where the subject property is at, and that you’re occupying one of the units which it seems that you are. 

Good luck. 

I have officially CLOSED on my SECOND PROPERTY—a single family home, investment rental. This means that I now own two properties in Texas!

It only takes that one family member to start the generational wealth cycle; I am that person! Born and raised in New Orleans, by a single mother!

Hey congratulations to you and your future generations, Grandpa! Many more.