All Forum Posts by: Gail W.

Folks in Florida are foregoing hurricane now too.  Honestly, if a ton of homes get wiped out (like in CA), who really believes they're going to help you in a timely manner? Not me! Unfortunately, if you carry a mortgage, you HAVE to insure it. And there go any profits. We are going to see some huge changes this year. :/

Same. My rentals in the mountains of AZ have had their policies tripled. Thankfully, they state they will do the escrow analysis in Dec, just AFTER my current tenants' leases are up, so I can raise the rent! Otherwise, I'd lose money each month. 

My friend who just bought a place across from me, as an STR/family vacay spot, can't even find anyone to insure it, except Tower Hill at $13k/year!!

Now she's looing at insuring it mainly as her vacay cabin, and get a separate liability policy via Proper/Lloyds of London... not even sure she can do that , but we're trying to get creative as it's very necessary. 

All of our long term and short term rentals have had their premiums tripled in the White Mountains of AZ. Unfortunately, we secured long leases back in Sept, and now make a few hundred, where we were netting at least $500. At least with the STR, I can at least adjust my nightly rate, but even that is way down. No one has any extra money to come up to the mountains it seems. Add to that, a lack of snow/rain this year... we're starting to wonder what to do!

As for selling... Our area gets a ton of vacation homes on the market every spring, and we're already seeing 4 to 5 a day- way early! And they are priced thousands below what they used to go for. I believe we're already upside down. So we're trying to get out now, before it gets worse. But trying to sell with tenants in place that have another 6 months left on their lease and already do not pay what new mortgage rates would take... yikes. 

Good question... I'd like to know too. Thing is, we can't get ANYONE to loan us ANYTHING this past year! 

We've stalled at 3 properties. They are all in a separate LLC (although any creditors looking can see 2 of them in our personal name). EVERYONE has said we aren't making enough money. We net an additional $1000/mo on each rental. We can't even get an auto loan! All lenders have said we have excellent credit/high FICO, but our DTR is way off. They recommend we get a regular 9-5 job so we have a W-2!! SO frustrating!

We had to refi one of the properties that the owner was carrying for a short time and wound up using an investment lender at a crazy rate that would do it. This is the one that when a lender does a credit check on us, they don't see it in our name. Not sure how they are seeing the other 2, because they are also in separate LLCs. Weird. 

I don't know HOW these other folks on BP are finagling these loans to get more properties or cash to repair. It sure isn't working for US! 

Update: Seller decided to NOT extend another 45 days to us and went with the backup offer. He DID give us back HALF our deposit. So that's something. And our lender said they will credit us the rest in a future transaction. Which doesn't really help because there's no way I would use them again! Live and learn. :/ 

We've used this lender on other investment properties; just closed one Feb 7th. So this was a complete surprise. I wouldn't have thought this would happen since we've had success with them before. 

Everything has been sailing along smoothly on a 6 plex deal... we just retired, drained our 401k, and were all ready to go in the next morning to sign, when the lender (Trans United doing a DSCR) calls us and tells us his pool of investors went from 50 or 60 all the way own to 5 to 8!! "Probably because of Ukraine and all that..."

They started with saying the 6 plex looked like a manufactured home. To which we replied with proof it was NOT. Hours later, he calls and says it's been denied due to "Inadequate Collateral/Unacceptable property!  We paid over $3k for an appraiser who you would have thought might have said something like, this is a manufactured home, if it was. No, they stated it was well above asking price. The inspector describes the concrete slab, traditional site built lumber, etc... What the heck?! 

Now we have lost our $15k earnest deposit as we are outside of the 45 day due diligence (seller kicked the signing forward a week because he was on a cruise- I could just SCREAM!!) and we are out all the other fees (inspections, appraisals, etc).  Sellers agent said the seller is willing to give us another 45 days to secure financing as he is experiencing the same issue on a deal he is doing in Hawaii. Even hooked us up with a lender who does "more traditional" loans, who we are waiting on to let us know if he really CAN help us.

We are suspecting not because the whole reason we went with a DSCR was due to recent retirement and other investment properties haven't shown long enough earnings or are STRs (we have heard "we don't like to count AirBnB style earnings" more than 4 times in our search). Now we have $300k pulled from the 401k (TAXES!) sitting here and aren't sure WHAT to do! I can't even believe this is legal! I have never had a deal pulled within hours of closing. And while I'm sure it's done all the time, this is such a weird reason! ANY IDEAS?

Passive income my ***. 

Hi All... I was looking for this same info. I thought there was some issue with Venmo, Zelle, etc, where the tenant could make a full or partial payment whenever they want, and if you are evicting them, that makes it so they are able to stay longer...? This is my only worry. 

We have already pretty much taken the path Nathan outlined. We live in a tiny town, so it was nothing to get to walk in to the courthouse and speak to the judge right then and there. She assured us it wasn't on our permanent record and to not worry; she'll take our statement officially on the 24th, just for a paper trail. That was a load off!

She said to file a complaint with the Broker, so we did. The broker is from "down town" and not very interested in assisting us, so we'll just wait and see what happens on the 24th. If the seller/tenant doesn't leave the keys, we'll just open the door and switch out all the locks (which we always do anyways- The Mr is also a locksmith).

We do see progress on the seller/tenant's move out, so that's promising. (again, tiny town; can't help but pass by on the way to the grocery store and such, so we do see the house. And local social media posts for stuff for sale...NOT our appliances or fixtures, thank the Lord!)  

UPDATE:  She went to the local courthouse early Monday morning and filed an Injunction Against Harassment against us! She named my husband as it was his name on the emailed lease.  It's filled with absolute lies. She states we tried to break in and steal the keys, called and harassed her, emailed her threats, etc. Thankfully the dates she said we tried to break in, we were out of town and we could not call/text her as her cell phone was turned off due to non-payment. We have retained a local attorney and saved all evidence to prove this was not the case. 

So now we can not call, text or email her. We can not give a 2 day notice of inspection. All we can do is WAIT AND SEE...?!?!

We still do not have keys. Her realtor said she would go to the house and take the lockbox off and give us those keys. That hasn't happened.

Also, my realtor gave me all the voice mails left by both the seller and her realtor stating all kinds of crazy stuff; (the seller just loosing it and screaming at my realtor). And the seller's realtor making the claim that the seller did, indeed, sign my lease, TWICE, but she can't send it to us because it's blurry. Which is very interesting as this was what got the seller so incensed in the first place. IF she was so mad and flat out refusing to sign the lease, WHY DID SHE SIGN THE LEASE, twice?? 

Seller has also demanded we give her our Cert of Good Standing on the LLC. (Our realtor told her to look it up herself). So I'm willing to bet her next play is some sort of complaint against the LLC.

We are torn between wait and see if she leaves in 2 weeks (let sleeping dogs lie) or be preemptive and try to remove the injunction off my husbands record (remove the head of the snake before it vomits out more venom).

This is all the most bizarre stuff we've ever encountered. Now my poor sweet husband has this on his record and this is SO not him! Passive income my ***- LOL!!