All Forum Posts by: Gail W.

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!! 

I don't know if this is a request for some creative ideas or a cautionary tale...

We just closed on an investment rental property in a rural area above Phoenix. The seller asked to rent back for a month, to close on her next place. We agreed, but told our realtor to add in OUR lease with a security deposit; just as we do with any regular renter. She sent it to the listing agent, who got the seller to sign, but then the seller became angry and tracked us down and called us on an old phone number, SCREAMING that it was "her house for the entire month" and she shouldn't have to sign anything, much less PAY a security deposit. Flat out REFUSED. This was days before closing, so we didn't have time to change anything.

We come to find out, within minutes of funding, the lease was "blurry" in the Docusign her relator used, so NONE of our custom entries or her signature are legible!! (We missed that at signing; we were preoccupied with a 6 plex we are closing on that has all the regular issues buying a 6 plex has. No excuse, but this sale had been going very smoothly, and we had no reason to doubt or worry.)  So we sent a regular lease via email/mail/hand delivered. You guessed it, no response. ALSO, come to find out, this woman is clinical bipolar; the realtor tells us AFTER all is said and done. Which would be fine, if she would take her meds and conduct herself in a responsible way. She sends us texts and phone messages where she just rants on and on about her poor life. 

Now, we have no lease, no security deposit and just the escrow instructions spelling out the rent back for 1 month (terminating on Feb 28). And now we see she has posted on social media that she wants to list the home on AirBnB!! Of course, we have a no sublease clause, but SHE WON'T SIGN THE LEASE. Realistically, not sure she'll be able to rent it out with only 2 weeks to go... IF she is REALLY moving on the 28th...? She's also got a Zillow ad where she tried to sell the house herself (for over $100k normal prices and what her agent listed it for/we bought it for). She will not relinquish ownership so we can create our rental listing. We have told her we won't show it while she is there. 

All of this is a bunch of red flags... we're worried she lost out on her next place and is planning on staying longer, without the lease or security deposit. Or she intends some other shady business.  Our only recourse is eviction if she won't move on the 28th. Our attorney has stated the only thing he can think of is do a 2 day notice of inspection. If she refuses, we can proceed with eviction process. But I hate to open that can of worms if she really plans on moving, so we'll wait and see. 

Thanks all... the reason I asked on here was 2 fold; my CPA was out on vacation for the long weekend, (but DID get back to me. She's the best!) AND I see freshies asking similar questions on other platforms and figured it would be a good one for someone to find in a search. ;) 

What she said, essentially- NO, moving it into the LLC won't matter (for tax purposes). YES, wait til we are perm residents of AZ as their taxes will be so much lower than if we are residents of CA. And that was something we really care about... that keeps over $15k in OUR pocket.

We already have a great "rent to own" contract we've used before, prepped by our atty. We got a nonrefundable down of $50k and balloon due mid January (the buyer also likes January as he wants to sell some options and needs to have it be in 2022 due to HIS taxes). We will put it in the LLC for the short life of the Rent to Own simply for protection (we will still have 100% control and will continue to rent it out/pay all costs).

We don't NEED to sell this property, so if he walks, we have $50k for doing nothing, so it's all good!

To answer a few other items I saw in some responses:
*The mention of a 1031 has been searing my brain all night! A park model is considered personal property until it is tied into a land parcel. Mine is on state owned land, run by a sub-concessioner.  1031s are exchanges for LIKE, so if I did a 1031, I could exchange it for another park model/mobile home (or 2)??? I always thought it had to be real property, not personal property, but after spending the morning researching this, I MAY BE ABLE TO DO THAT!! I will ask my CPA and atty again, once the long weekend is done. THANKS Doug McVinua for mentioning it! ;) (And yes, we ADORE Arizona!!)  
*We don't OWN anything (any more) in CA. Sold all our holdings in 2019 and reinvested in AZ, buying 3 other rentals in various towns. We are here in CA temporarily on a job in a corp rental, but according to CA, not temp enough, (so hand over the tax, chumps). Retiring from this W2 career after 25 looooong years mid Dec. YAY!

Need some help figuring this out...  

The Mr earns @ $100k on his W2 job. He will retire from that this mid December. We live in California, but will move permanently to AZ in December.

We own 3 rental properties in AZ; one being a park model that is a STR that we have had for 14 months.

We created an AZ LLC. We were about to put the Park Model in to the LLC.

Current vacation renters just offered to buy the Park Model for $350k. We purchased the Park Model for $162k, and can claim around $30k cap exp for rehab, so tax basis of about $192k. 

Should we hurry up and put the park model into the LLC before the sale? If we are still living in CA, but the LLC is in AZ, will it help/matter?

OR- we can WAIT and sell it to them in January, AFTER we've officially moved to AZ. They are fine waiting, but I feel like a bird in the hand is apt to fly away when it sees something better... ;)

TIA!