All Forum Posts by: Account Closed

To be clear, I am looking for a lender that will let us use the future rental value (once renovations are complete).

I am looking to purchase another duplex that will be owner occupied. The current duplex I own and live in is having the downstairs renovated. Typically lenders like to see an active lease in place before counting the unit's rent as income. The lender I've used before (Firefighters community credit union) let's us take a certain percentage of the rental value when determining income for buying power, but they are not being responsive right now. Please let me know if you have or know of any lenders in the area that do the same. I have enough to put 15-20% down.

Thanks!

Hi,

So a background on the situation. My husband and I bought our third property (a duplex) for a house hack. The downstairs unit already had a tenant and we knew he was very dirty from the inspection. The upstairs unit had been vacant for some time. Before closing, we had a pest inspection done and no active infestations were found (which within a day of moving we knew the inspector was full of crap from all the mice the downstairs tenant was attracting). We renovated our unit (about 1 month) and then moved in. We came from a our single family home and have never had bed bug issues before, and within 2 months of moving in my husband was getting bit and shortly after we found our first bed bug.

We immediately called an exterminator and he spent about an hour taking apart our unit and found one dead bed bug.

But then we went downstairs and within 2 seconds he found HUNDREDS on this guys couch, dozens on his kids beds (new mattresses I might add) and all over his furniture. We talked separately with the exterminator and he stated this was the worst infestation he had seen (2000+ reviews on google type of exterminator) and that this guy was completely a moron for not noticing this level of infestation and based on how many were in the house, that it was extremely likely that the tenant brought them in when he moved in 6 months before us under the last owner.

So we pay the $1700 for a full spray treatment and billed it to the tenant. He of course can't pay so we get him to sign a mutual termination of lease agreement for him to move out and we will waive the $1700. We were relieved since this tenant was a nightmare with lease violations and many calls to social services due to neglecting his kids. He trashed the unit (5k+ in damages) but we were relieved to have our house back.

We complete two treatments with the exterminator and decide to do a diy heat treatment by renting heaters. We figured it would be easier since one unit is already vacant. The temps got upwards of 130 degrees for 12 hours. We even put sensors in our clothes drawers and those reached 120 for a few hours. We also used spray treatment shortly after to really make sure they would die. We thought the issue was fixed.

Then about a week and a half later (today) my husband notices more bites. We realize they could be from before the treatment since they can take two weeks to appear, but I'm hesitant to think that's the case. When I get home today I'm going to take apart the bedroom again and launder our bedding and any clothing items, then do more spraying, but I want some advice.

Our bedroom is the only place they can feed since the other unit is being renovated and is vacant. I am considering spending 3k on electric bedbug heaters and fans and as an investment to make towards our portfolio, and just heating the bedroom once a week for a month or two.

Does that sounds like a good strategy moving forward? Any advice? I'm kinda at my wits ends since weve done three spray treatments and one heat treatment and are still getting bit. Thanks in advance for any advice.

Thanks everyone. I havent had to do this before so it's nice to know it's as simple as giving a 30 day notice.

I am a newer investor. I own 5 units in 3 properties including the one I live in. I have tenant that was inherited from the former owner. He is living in the downstairs unit and we will be living in the upstairs unit after we make some upgrades (duplex). We already know that we don't want this tenant to re-sign his lease when it's up in June, but I want to make sure the reason I provide is legal. We are in Ohio (Cleveland)

1.) He is on a voucher program (Eden). We do not want to accept vouchers. We are kinda forced to since he is currently in a lease, but are we allowed to not accept this form of payment under a new lease?

2.) He has kids which I dont have an issue living with (I know I cant have an issue for discrimination reasons). The kids can be loud, but the issue is the dad. He screams and swears at them at the top of his lungs which is very disruptive.

3.) The lease states we can terminate the lease for smoking. When we got the keys we told him he cant smoke inside the unit. A week later we smelled smoke inside our unit again and are assuming he is trying to smoke inside with the window open, but it's still extremely smelly to non-smokers.

4.) He is annoying to live with. I feel that I should be more picky when the person is my neighbor. Everytime we leave (we have shared entrances before you enter the unit) He comes out with the kids to talk to us, like hes waiting for human interaction. Whenever we open our unit door, the kids try to come inside. He also goes places and doesnt bring his keys and leaves his unit door open. If we come inside the shared door we lock it, then he is stranded outside screaming our names waiting for us to open the shared door.

5.) Market rent is $900-$1000 and he is currently paying $700. I suppose we could just raise rent and Eden probably won't pay that amount.

Overall, I dont think this person is going to be a good fit as a neighbor/tenant. I would prefer to screen the tenant myself and have someone who keeps more to themselves. Do I have any valid reasons to not let them re-sign the lease come June that will not land me in a lawsuit?

Thanks in advance!

X

@bob prisco with all do respect, YOU clearly don't know Cleveland. I live in one of the hottest neighborhoods in Cleveland and the lot next door is a community garden owned by the city. We have inquired about purchasing it and the Councilman stated they are keeping it a green space. They also keep getting offers from developers, but are turning those offers down... do your research before acting like a jerk.

Cleveland is also a used as a case study for urban community gardens that other cities are trying to replicate.

To answer the original question of the thread... I own a duplex on the east side and contacted the land bank about purchasing the empty lot next door. They stated that if its owner occupied, you can purchase through the side-lot program for $200. If it's an investment property it'll cost about $600 for the lot. I hope this helps!

I would like some advice on how to move forward with a mortgage company that backed out of a BRRR refinance.

We were preapproved for a refinance on a property, passed the credit check, and everything was smooth sailing. The mortgage company charged our credit card for a $695 appraisal and everything came back great. We received conditional approval also. The lender called us today and stated they are no longer lending on our type of loan (refinance, multifamily, investment property) due to the market conditions.

Since this is clearly on the lender for backing out, are we entitled to get a refund for our appraisal? The appraisal was charged by the lender and not a third party on our card. Do I have grounds to dispute the charge on my card since the lender did not follow through with the loan? Any advice is appreciated.

Thanks!

I would like some advice on how to move forward with a mortgage company that backed out of a BRRR refinance.

We were preapproved for a refinance on a property, passed the credit check, and everything was smooth sailing. The mortgage company charged our credit card for a $695 appraisal and everything came back great. We received conditional approval also. The lender called us today and stated they are no longer lending on our type of loan (refinance, multifamily, investment property) due to the market conditions.

Since this is clearly on the lender for backing out, are we entitled to get a refund for our appraisal? The appraisal was charged by the lender and not a third party on our card. Do I have grounds to dispute the charge on my card since the lender did not follow through with the loan? Any advice is appreciated.

Thanks!

I've found some hard money loans that will cover 85% financing, and I think it's fair for the borrower to have some skin in the game. I saw that DoHardMoney, which is listed as a hard money lender on Bigger Pockets, offers 100% or low down payment options. Does anyone have experience with them? Are they legitimate and easy to work with?