Bought My First House and I need to Live in 1 Unit

Bought My First House and I need to Live in 1 Unit

Member since 2023 · 3 posts · 1 vote

Hi everyone, I just bought my first house in upstate New York and I plan on house hacking. It is a 2 unit and I plan to do a full renovation of both units, but the issue is that there are tenants in both units. I need at least 1 unit to be free for me to move into since I used a conventional loan to buy the property and I preferably would like both out so I can do the full renovation easily. What are my options?

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Property Manager · Watertown, NY · Member since 2021 · 141 posts · 78 votes
3y

Hi David, you have a good plan. Anytime house hacking is an option I think people should go for it. How far upstate are you? 

So I can give you some options but I need a little more information. 

1. Did any of the tenants sign an estoppel agreement prior to/after closing? 

2. Do you know how long they've been there for? 

3. Are any of them receiving public assistance such as section 8?

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  • Property Manager · Watertown, NY · Member since 2021 · 141 posts · 78 votes
    3y

    Hi David, you have a good plan. Anytime house hacking is an option I think people should go for it. How far upstate are you? 

    So I can give you some options but I need a little more information. 

    1. Did any of the tenants sign an estoppel agreement prior to/after closing? 

    2. Do you know how long they've been there for? 

    3. Are any of them receiving public assistance such as section 8?

  • Member since 2023 · 3 posts · 1 vote
    3y

    Hi Amber, I am in the Utica area of upstate New York. As for an estoppel agreement, nothing has been signed but we are still early in the closing process. I do know the tenants are currently month to month and they both have been there for a few years. To my knowledge neither of them receive public assistance. Thanks for your help!

  • Property Manager · Watertown, NY · Member since 2021 · 141 posts · 78 votes
    3y
    Quote from @David Duh:

    Hi Amber, I am in the Utica area of upstate New York. As for an estoppel agreement, nothing has been signed but we are still early in the closing process. I do know the tenants are currently month to month and they both have been there for a few years. To my knowledge neither of them receive public assistance. Thanks for your help!


     Utica is a nice area. I'm a bit further north in the 1000 Islands Region (Watertown/Fort Drum Area). 

    Firstly, I would request leases at closing and if they can't provide them then I would require an estoppel agreement signed by each tenant. Depending on how long they've lived in the units, you're going to need to provide a certain amount of notice to terminate their lease. If they are on a lease currently and it's a fixed term, if they're paying on time, then you'll most likely need to ride it out until their lease is up and provide proper notice of non-renewal (see below). 

    Here is the breakdown of those timeframes you must give to properly notify the tenants: 

    If they've lived in the unit for less than a year: 30 days notice

    1-2 years: 60 days notice

    2+ years: 90 days notice

    However if they do not have a lease in New York, it automatically defaults to a month-to-month and the same time frames as above would apply. This is why the estoppel agreement is important because it helps you know how to properly give them notice and if they refute it down the road you have something to help your case. 

    NY is tricky but stay up on the local/state laws as they do have a tendency to change. Become familiar with the housing stability and protection act of 2019 as well. These laws impact landlords on a daily basis. https://www.nysenate.gov/newsr...

  • Member since 2023 · 3 posts · 1 vote
    3y
    Quote from @Amber Forkey:
    Quote from @David Duh:

    Hi Amber, I am in the Utica area of upstate New York. As for an estoppel agreement, nothing has been signed but we are still early in the closing process. I do know the tenants are currently month to month and they both have been there for a few years. To my knowledge neither of them receive public assistance. Thanks for your help!


     Utica is a nice area. I'm a bit further north in the 1000 Islands Region (Watertown/Fort Drum Area). 

    Firstly, I would request leases at closing and if they can't provide them then I would require an estoppel agreement signed by each tenant. Depending on how long they've lived in the units, you're going to need to provide a certain amount of notice to terminate their lease. If they are on a lease currently and it's a fixed term, if they're paying on time, then you'll most likely need to ride it out until their lease is up and provide proper notice of non-renewal (see below). 

    Here is the breakdown of those timeframes you must give to properly notify the tenants: 

    If they've lived in the unit for less than a year: 30 days notice

    1-2 years: 60 days notice

    2+ years: 90 days notice

    However if they do not have a lease in New York, it automatically defaults to a month-to-month and the same time frames as above would apply. This is why the estoppel agreement is important because it helps you know how to properly give them notice and if they refute it down the road you have something to help your case. 

    NY is tricky but stay up on the local/state laws as they do have a tendency to change. Become familiar with the housing stability and protection act of 2019 as well. These laws impact landlords on a daily basis. https://www.nysenate.gov/newsr..

    That is super helpful, thank you! Do you know what would happen if they have both been there for over 2 years, but I need to move into the property because of my conventional loan (I believe I have 60 days to move in)? Can I request an estoppel early in the closing process to meet that 60 day deadline after the house closes?

  • Property Manager · Watertown, NY · Member since 2021 · 141 posts · 78 votes
    3y
    Quote from @David Duh:
    Quote from @Amber Forkey:
    Quote from @David Duh:

    Hi Amber, I am in the Utica area of upstate New York. As for an estoppel agreement, nothing has been signed but we are still early in the closing process. I do know the tenants are currently month to month and they both have been there for a few years. To my knowledge neither of them receive public assistance. Thanks for your help!


     Utica is a nice area. I'm a bit further north in the 1000 Islands Region (Watertown/Fort Drum Area). 

    Firstly, I would request leases at closing and if they can't provide them then I would require an estoppel agreement signed by each tenant. Depending on how long they've lived in the units, you're going to need to provide a certain amount of notice to terminate their lease. If they are on a lease currently and it's a fixed term, if they're paying on time, then you'll most likely need to ride it out until their lease is up and provide proper notice of non-renewal (see below). 

    Here is the breakdown of those timeframes you must give to properly notify the tenants: 

    If they've lived in the unit for less than a year: 30 days notice

    1-2 years: 60 days notice

    2+ years: 90 days notice

    However if they do not have a lease in New York, it automatically defaults to a month-to-month and the same time frames as above would apply. This is why the estoppel agreement is important because it helps you know how to properly give them notice and if they refute it down the road you have something to help your case. 

    NY is tricky but stay up on the local/state laws as they do have a tendency to change. Become familiar with the housing stability and protection act of 2019 as well. These laws impact landlords on a daily basis. https://www.nysenate.gov/newsr..

    That is super helpful, thank you! Do you know what would happen if they have both been there for over 2 years, but I need to move into the property because of my conventional loan (I believe I have 60 days to move in)? Can I request an estoppel early in the closing process to meet that 60 day deadline after the house closes?

    So this one is tricky because if it's being managed by a company currently then they could begin the process of posting/sending notice of non-renewal to begin the process. However, it is typically unlikely they will agree because if for whatever reason the deal doesn't close they would be in hot water with the current owner. If it's managed by the owner you could try to convince them to do this but if it's through a real estate agent again, chances of this are probably slim. Secondly I would talk to your lender and see what your options are if you aren't able to move in within that 60 day window. Every lender is different so that's why I can't give you solid advice here but I do know that some some require you live in the home for X number of days and sometimes it's not the full 365. Again, check with your lender on the specifics. 
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