All Forum Posts by: Amable John Aguiluz XIII

@Justin Sherwood Hi. Looking into Santa Fe area for Multifamily now. Got any leads for vendors? Would like to build my team before I head down there to buy. Is Airbnb worth it there also or is it more so long term?

@Jessica Tsao where did you get that rate? How long is your prepayment penalty for? Did you get charged any points?

I’ve got 800+ FICOs and the LTVs I’ve been getting quoted are 80% and 75%. Still blown away by how high the rates are with this much down.

@Andrew Postell I'm actually apparently at the point where I'm maxed out on my DTI, since I bought 2 properties recently and refi cashed out on 3 others. My lender said that I may not be able to qualify for traditional conventional financing moving forward because of this and the 75% of rent test requirement for rental properties. This is why he brought up DSCR options.

So, I'm purchasing a property in the Palm Springs area all cash at a great price, and my plan was to refi cash out after I do a bit of rehab and then rent it out. The thing is the rates he found me are 2% higher than traditional conventional refi cash out rates (5.5% as opposed to 3.5%) with pre payment penalties and a 2-point cost in one of the scenarios. Plus, DSCR only requires the mortgage amount as minimum test as opposed to the 75% of rent by traditional financing.

It seems a bit too much, so anybody know of any better options out there? Thanks.

@John D. you wouldn’t happen tk have a local vendor list of companies you’ve worked with for all of your properties in the Palm Springs area would you?

@John D. Just PM’d you.

@John D. Hi John. I'm looking into the Palm Springs, Palm Desert, La Quinta areas for investments. Would you happen to have a list of trusted vendors (including contractors, property managers, etc) in this area so I could build out a team? Also, have you heard of any news about the lifting of the STR ban in LQ? Such a bummer.

@Matt Huber You could use this form after the lease term ends. Also, don’t do it two months before the lease ends because they can contest that. You should serve it the day after the lease ends to be safe. You can’t do it while the lease contract is in place in CA.

@Bill Brandt Pardon the delay in response. FIL passed away, and we were dealing with the funeral arrangements. The OP said he wanted to sell, but for your situation, you would have to wait out until the contract lease term ends to get them out with 60 days notice.

@Matt Huber CA Realtor and investor here. There's a CAR form called Notice of Termination of Tenancy (NTT-CTRA) that states that the lease can be terminated 30 days from service of this notice only if ALL of the following are met: 1. Landlord has entered into a contract to sell the premises to a natural person, AND 2. Purchaser intends to reside in the premises for at least one year following the termination of the tenancy in the premises, AND 3. Landlord has established an escrow with and escrow company licensed by DFPI, DI, or a licensed RE broker, AND 4. Escrow was opened 120 or fewer days prior to delivery of this notice, AND 5. Title to the premises is separately alienable from any other dwelling unit (SFR or condo), and 6. Tenant has not previously been given a notice of termination of tenancy.

Otherwise, it's 60 days if you or immediate family intends to occupy, and/or you intend to withdraw the premises from the rental market, and/or you intend to demo or substantially remodel, and/or you entered into a contract to sell premises to a natural person, AND purchaser intends to reside in the premises, AND title to the premises is an SFR or condo, AND owner has previously provided tenant with a rent control exemption form.

It’s a ton of verbiage to go through, so I summarized it, but basically it’s 30 or 60 days based on your situation without regards to the length of tenancy IF you are selling the property. Pre-covid was 30 days when you served a notice of termination and have opened escrow without regards to length of tenancy, but as you know, it’s become more complicated.

Hope this helps. This is not legal advice.

@Ryan Swan Thanks for this. I have a property in Glendale that I picked up last September and one in Scottsdale as of March 2021, and both had different requirements and taxes. The former requires TPT to be paid with even just one property if it is being used as a rental. The tax is 2.2%. The latter does not require it until you hit 3 properties or more in AZ. I’m actively looking for a third, so I’ll be passing the 1.75% on to my tenant in Scottsdale when the time comes. Thankfully, it’s defaulted verbiage in the AAR lease contract.