All Forum Posts by: Tom Canterino

@Ashish Acharya thanks. And he will qualify given we will live in a unit.

Hello, my partner and I are looking to purchase a home. He is a first-time buyer and is eligible for an FHA loan, I am not as I currently own multiple investment properties. That said, we want to own this home 50/50, he will use the FHA qualification and I will put all the downpayment and out of pocket costs. Is there a legal way of going about this? Do we do a contract off the table and have it notarized? Do we both need to be on the title/deed to make this legal? Do tenants in common make the most sense for this scenario?

I just want to be legally sound and also not put us in a position where we will not qualify for an FHA (if I am officially on the title).

Hoping someone has some guidance, experience or even a good legal template I can review.

Thanks!

Tom

Hi BP!

Hoping to get a bit of guidance in relation to going in on a real estate investing deal with a friend of mine. In short, I will be putting up the downpayment and closing costs and he will be securing the mortgage and management. Does anyone have a partnership agreement that they could share with me? Not asking for legal advice per say but just want some jumping off points as to what wordage was used and what kind of structure has been successful for anyone that has experience with this. If anyone has a template or sample agreement that would be appreciated.

Sincere thanks in advance!

Tom from RI

Hey everyone.

Wondering if anyone does yearly preventive Maintenance checks at their properties? If so, does anyone have a template or checklist that they use and are willing to share? (Ie: plunge drains, fix screens, etc)

Thanks so much!

Tom

Hello BP! 

I wanted to know if anyone could help advise on opportunities to purchase a second investment property without 20% down. Is this doable? Are their loans out there that would require less than 20% down? I purchased my first property early last year and have owned it for over a year now, cash flows nicely, and I am looking to purchase another. 

I also wanted to know if anyone has had success with contacting owners of multifamily houses that aren't currently for sale but asking them if they are looking to sell now and in the future? 

Any help or guidance is appreciated. I am located in the Rhode Island area as well.

Thanks in advance!

Tom

Hi BiggerPockets!

I am reaching out in hopes to get some guidance in the situation I am currently in. Here is the non-detailed back-story;

Purchased a new 3-family in October and inherited the tenants in the other two units (I would be living in one). That said, I took over the previous landlords lease, which was a skeleton lease of 3 pages. Not much was being protected. 

After 2 months of living there (I lived above one of the units rented) I would witness the tenant literally screaming, cursing, and being verbally abusive to her two sons (4 years old and 7 years old) - loud noises all day and night, etc. Now, I know it's not my business what she does with her life or children but after bringing this to her attention, multiple times, it kept going. I also have received numerous complaints from the tenant next to them. And not just complaining complaints, like scary, nasty complaints that I wont even get into. 

I moved out of the unit in January as I found someone to rent and in the first month of the new tenant living there they too filed a complaint against the below tenant as they heard verbally abusive behavior as well. Again, I alerted the tenant and of course, she denied everything, etc. etc. A handful of other things have happened to, which completely put a bad taste in my mouth (IE: she asked if her niece and her nieces baby could move in for a month and I said no - she didn't listen and they moved in - technically she broke her lease right then and there but I let it slide knowing her lease was going to expire) (she thought another tenant knocked her garbage can and grill over -- when it was just the wind). IT GOES ON..

So, in December I gave her a 60-day notice for renewing or vacate with a new rental price $100 more than what she was paying (I raised it in hopes she would vacate). In a fury text, she said she wasn't going to be staying but I took it with a grain of salt because I needed her signed vacate or renew sheet to be able to issue her a new lease. 

That said, she actually signed and said she would be renewing the new rental price. So then, I put together a rather long and inclusive lease which was about 20 pages. I wanted to protect myself, my other tenants and my property. I put clauses in the lease that would make her clean up her act if she was going to stay and protect me if I needed to evict her. I took lead from other RE Investors who have long leases to protect them and their property.

Her lease expires end of this month and she still has not signed the new lease. I texted her the beginning of last week and she said that she was going to have an attorney look at the lease since it was 'SO LONG" and she had questions. I said, Ok Great - let me know by Friday....(she never let me know). If she didn't have a guilty conscious she would have signed the lease and been done with it...

Being as I still do not have a signed lease, my question is -- if by the end of the month I still do not have the signed lease, according to her previous lease, her contract will go month-to-month and either tenant or landlord can give a 30-day notice to vacate. If by the end of the month she doesn't sign, I assume I am allowed to tell her to vacate within 30 days? I just don't want her to turn into a squatter or I also do not want to have to evict her. She has been a nightmare and I just want to be rid of her at this point. 

Any help or guidance is very appreciated. 

Hi everyone,

So one of my tenants, who is a really good on time payer, called me today to ask if her niece and nieces child could move into the unit for a month. I guess she has no heat and had landlord problems with them not wanting to fix the heating system. That’s what I’m told. She asked if they could stay for one month. I said I would let her know so I wanted to know if anyone has been in this situation and if so what did you do? Do you amend the lease? Charge more? What happens if they don’t move out in a month? There already is 3 people living in the unit (Mom and two kids) and it’s a 2 bedroom home. Now adding them will make it 5. And I’m sure it will be louder. 

Appreciate any thoughts and suggestions.

Thanks

Tom 

Thank you all so much! @Ben Wilkins @Josh Caldwell @Anthony Thompson

Thanks, everyone! The mortgage payment & all out of pocket costs are including everything - insurance, taxes, PMI etc. No HOA. Utilities are paid by each tenant and are separated. Apparently, all tenants are good and long standing as well. Rent has not been raised in years and the current rent is way under market value. I know when I live there will be negative cash flow and I will have to pay a bit, which I am OK with for the first year, but when I move out, the property will cash flow. Zillow estimates the home value to be around $325k. The plan is also to live there for a year, pay down the mortgage and use the equity in a year or two to purchase another multi.

Hi everyone, I was hoping to get another opinion on the below deal. It will be my first triplex purchase. In a really prime location in Rhode Island. On a country club, safe location, renovated 1st and second. Keep in mind there is NO other available multi families in the entire area. FHA RI First Time Homebuyers Program Offer price: $320k Seller Closing Credit: $5k RI Grant Program: $7500 (to be used for down payment) Balance of down payment: $3700 Out of pocket: about $5000 Monthly Mortgage payment: $2340 Monthly Rent (with me living in 3rd floor unit): 2000 but will be raised to around 2250. When I move out it will rent for a total of around $2850. Plus laundry coin op sales - and pet fees and deposits.