All Forum Posts by: Matthew Lindsey

@AJ Exner Hi, the properties have tenants in them now.

Hi, 

I'm looking to pull cash out of 2 SFHs in GA. Looking for a 30yr fixed DSCR where the lender does not care if the tenants for the properties are in the name of an LLC. Preferably a seasoning period of less than 6 months as we have owned these properties for almost 5 months. Please let me know if you can help.

Thanks,

Matt

Hi,

I'm in the middle of getting a DSCR loan. I'm pulling cash out of a couple rental properties. My question is if the lender has already pulled my personal credit/ran my credit, will me pulling from my HELOC on my primary home hurt me in the DSCR process? I have another deal that I may need to pay cash for to lock up but don't want to complicate what's already in the works. I know pulling from the HELOC affects your credit once it hits. After seasoning I would cash out to replenish the HELOC.

Any help on this is appreciated. Just don't want it to throw up any red flags, hurt, or slow the DSCR loan process.

Hi,

I'm considering taking a route I haven't thought of before. I listed one of my SFH's for rent and had a company contact me wanting to do residential recovery/rehabilitation from the home. 2 people/Bedroom. The people would be on a program for drug rehabilitation, trying to stay clean ,get on track, and would have a full time manager in the home.

Anyways, I’m renovating another home right next to this one and they want it as well. I feel like if this goes well it could be a good thing but if it goes bad then it could get nasty. Normally I don’t accept tenants like this. I’m sure others have done this in the past with mixed results. I would just be the landlord not involved in any day to day things. The properties are in a C neighborhood already.

For those that have done this have you needed to create a whole new lease agreement or can you just have addendums added. I think it would be considered a Corporate lease since the lease would be in their business name. Any input would be appreciated. Thanks

Thanks @Bjorn Ahlblad and @Greg H.

@Trent B Paul- Thank you as well. Yes, I can see a lot of negatives about the situation as well. I have to be careful as to how I handle the situation as to not lose the deal(there are backup offers). It was a deal good enough as to where I didn't mind acquiring the tenant since they were already served the 60 day notice. The sellers are not familiar at all with being landlords. I'm not sure what made them up and decide to file an eviction on this tenant at the last minute. I assume they were afraid they were going to have to pay his pro-rated rent for the month at closing. I'm hoping we can just extend the closing until after the unit is vacant, which they believe it will be soon. Can this be done with a simple amendment? Also, do you know if the sellers have to accept payment if they are more than one month late, or can they have the tenant removed?   

Hi,

I know this is not ideal at all but if the sellers of a property with a tenant in place has filed an eviction on the tenant within a couple days of closing on a property does the eviction stay in place, or is it null and void once the closing takes place? Eviction for non payment of rent.

I’m supposed to close on a property this week and the sellers just decided to file an eviction on the tenant. The tenant had already been given the 60 day notice to vacate then the sellers just decided to file the eviction on Friday. I know the ideal thing is to acquire the property vacant but that wasn’t an option here if I wanted to buy the property. I’m just trying to see if eviction stays in place and is still legal after closing if I amended the contract to state the sellers must follow through with it. Also I haven’t had to evict anyone yet but do the owners have the option to not accept rent payment from the tenant since they are late in order to have them removed, or do they have to accept rent and keep tenant in for 60 days?

Thanks,

Matt

@Patti Robertson- Thank you for your reply. I could possibly tie at least 1 of those 2 bedrooms to a bathroom. If there is no hallway to that bedroom but say that bedroom has access through a bathroom door and a door in another bedroom would that pass as an additional bedroom then (it has a closet by the way)? So that one particular bedroom would have 2 doors one that enters another bedroom and one door that enters a bathroom, which there would be an exit from the bathroom to a hallway.

Also- Another thought (might be even more weird), but if I was to just install doors that exit to the exterior on both of those bedrooms would that work as well? 

@Bob Stevens- Yeah thanks, you mentioned that already. 

@Eliott Elias - yes I’m aware of the section 8 inspection, just not homes/Br’s would qualify for section 8.

@Bob Stevens- I’m closing either way, if I try section 8 or not. As far as using a PM, not many just willing to teach you even using them as a PM(job security). Got to start somewhere and sometime to learn. I have other rentals just never tried Sec 8. Which is why I come here to ask questions. How could you make it pass and not anyone else? 

Does anyone know if a home that has 4Br’s but 2Br’s are accessed through the other BR’s (So no hallway to access all 4Br’s) would qualify for section 8? I have heard some houses wouldn’t qualify for Section 8 but I’m not sure which those are? I’m not talking housing that wouldn’t qualify because of the inspection issues. If you know of which type of homes wouldn’t qualify I’d love to know about them.

Thanks,

Matt

 I feel as though this will make me lose the deal. That will extend the closing to at least 60 days and it’s believed the seller is wanting to close quick.