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Tax, SDIRAs & Cost Segregation

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Orlando Goodon
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ERAP LIMITS: What would lead to forfeit of benefits?

Orlando Goodon
Posted Aug 4 2022, 12:15

In short, if a tenant does something that would forfeit their e-wrap protection I need to be aware of this fact. What are reasons that a tenant would be removed from the program based on their actions?

I am looking to find out what the limits of protection that tenants get from this program. In other words what are the types of things that would lead to a tenant losing this protection? For example I'm pretty sure if a tenant is going around and assaulting other tenants the program will no longer protect them. The reason I'm looking for this information is because the program is very tenant friendly and therefore I'm limited in what I can do to get tenants out of my property so that I can renovate so I need to be aware of things that would lead them to basically get themselves kicked out because it would be a major failure on my part if I focus only on what I can do and then miss an opportunity.

just because I know people are going to misunderstand what I'm saying here let me illustrate. Imagine I initiate a moving eviction process with an attorney and that process is dragging along. Then the tenant does something that would violate the rules of the program but because I'm not aware of this I don't see on the opportunity to notify the program of the violation. So in other words I need to know what violations they can make so that I can report it because that's probably a faster option.

kissing point the tenants I believe have been in this eviction process for over 14 months by now. That would mean the three forward months have already expired I believe. So the only thing the program would be protecting them from is back rent. So this means if they miss payments at this point in time they won't be protected by the program. I can then do an eviction for non-payment.

so if this is a game of chess I need to be aware of the concept of checkmate. Otherwise I will have a checkmate opportunity but failed to move my piece because of lack of knowledge.

I'm actually thinking to call the government program itself as a tenant and ask them what would cause me to lose my benefits.

I guess also theoretically a good attorney should be able to tell me these things as well.

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Nathan Gesner
  • Real Estate Broker
  • Cody, WY
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Nathan Gesner
  • Real Estate Broker
  • Cody, WY
ModeratorReplied Aug 5 2022, 05:45
Quote from @Orlando Goodon:

I think you're spending too much time spinning yourself up over hypotheticals.

Your original ERAP application should spell out the rules and how a Tenant can forfeit benefits. They also have an office you can call and ask questions, but I doubt they'll want to play the "what if" game with you.

Worrying about tomorrow won't add a single hour to your life. Stick with the process. Hope for the best, be prepared for the worst.

I notice you're in New York. This may be an indication that you need to wrap it up with this tenant, sell, and move your money to a state that doesn't allow this to happen.

  • Property Manager Wyoming (#12599)

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Orlando Goodon
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Orlando Goodon
Replied Aug 5 2022, 16:02
Quote from @Nathan Gesner:
Quote from @Orlando Goodon:

I think you're spending too much time spinning yourself up over hypotheticals.

Your original ERAP application should spell out the rules and how a Tenant can forfeit benefits. They also have an office you can call and ask questions, but I doubt they'll want to play the "what if" game with you.

Worrying about tomorrow won't add a single hour to your life. Stick with the process. Hope for the best, be prepared for the worst.

I notice you're in New York. This may be an indication that you need to wrap it up with this tenant, sell, and move your money to a state that doesn't allow this to happen.


 You are probably right. Thanks for the comment and advice.

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