All Forum Posts by: Ate Etim-Edet

Quote from @Mohammed Rahman:

Hi @Ate Etim-Edet - from the language you described it seems like it yes (less than 30 days). I'd be wary of doing Airbnb for the first 12 months or so - even though the bank will likely never send someone over to check, there's still a small risk. 

I know that with an FHA loan for example, the owner has to live in one of the units for the first 12 months at least before being able to rent it out.

 Hi @Mohammed Rahman thanks for the advice. I Should have mentioned my unit is a 3 bedroom 1 bath so I would still be living there the whole time as my primary resident, just Airbnbing an available guest room 

Hello BP family,

I recently purchased my first triplex here in NE DC. I'm staying in one of the units, the other ones already came with tenants. Of course I used an FHA loan to close the deal. My question is a signed a HUDs Borrower's Contract with Respect to
Hotel and Transient Use of Property (92561). Apologies if this has been asked a million times but does this form basically mean I can't AirBnB a room out in my own unit if it's less than 30 days? I'm looking at the specific section below. 

Section 513(a) of the National Housing Act, as amended,
provides that as long as mortgage insurance is outstanding,
no portion of the housing covered by any such mortgage shall
be used for transient or hotel purposes;

The Secretary has defined the term transient or hotel
purposes to mean (1) any rental for a period less than 30
days, or (2) any rental if the occupants of the housing
accommodations are provided customary hotel services such
as room service for food and beverages, maid service,
furnishing and laundering of linen, and bellboy service.

Thanks,

Ate

@Russell Brazil quick question does that mean that he may incur fines or has to do anything to bring it up to code in anyway? Or does it matter?

@Richard F. Thanks so much I will follow up and search for this type of form!

Hello Team, 

In my first real estate multi family purchase 2 tenants come with the building and are in the DC voucher program. What is the procedure that I have to go through with DC Housing Authority to basically let them know I'd be the knew land lord of the property and switch my information with the out going sellers?  All advice greatly appreciated. 

Thanks

Ate'

Hi @Justin Kramp, I'm closing my first deal this month on a 4 unit property here in DC and I'm also a licensed real estate agent with access to the MLS. Would love to connect and help you out in anyway I can.

Quote from @Evan Polaski:

@Ate Etim-Edet, a simple notice to the tenants is all that should be needed to make sure rents are paid to you and not old owner.  Most leases, but consult with the existing ones, require written notice which is commonly submitted via certified letter, so you have a signature of receipt for your records.  But a phone call, text message, email, and/or knock on the door is always a good step too, so you are not some faceless person that the tenants begin to resent.

There is no change in lease required, since the leases are assigned to you from the prior owner at sale, and should be outlined in your sale contract.  But if you prefer, you can always ask for one, where you cancel the old and sign a new, but may get some pushback from the renters.  Typically, this is handled at renewal, with plenty of notice provided (I like at least 2 months, and if there is going to be a big rent increase I give 3 months, since I want to know if they are staying or going, so I can get contractors lined up to minimize downtime).

Lastly, with Rentredi, as I far as I am away you cannot force a tenant to pay via a certain way.  Most will be happy to accommodate, especially if it is free and easy for them, but I believe in most states (not an attorney) payment is payment, whether they pay you via rentredi, paypal, check, etc.  But with this, you really can't FORCE a change while they are under lease.  You can request, but they likely have the chance to say no.

When you renew them to your form lease is when you can start making bigger policy impacts, like formalized rules, fee schedules for mainten

Thanks so much, this is the exact information that I was looking for and will be using. I'll invite them to join rentredi and hopefully they will join

Quote from @Jamie Banks:

Congrats securing your first deal! I’m in NOVA and I’d love to connect sometime. Will you be using a property manager or self managing the quad? 

Thanks, I'll be living in one unit, self managing through Rent Redi and also I have an aunt who has just retired from one of DC's top Property Management firms who was VP for the past 20 years. She will help consult and connect with vendors.

Thanks so much guys, I should add that I'm also a DC agent representing myself but this is my first personal property investment deal so wasn't sure but I'm going to be VERY Proactive about this.

Hello Team,

This is my very first post as I've been watching and reading others from the sidelines for over 2 years. I'm excited to be closing on my first multi family four unit property here in DC. The Closing date is 5/31/2023. My question is at what point do I get the existing Tenants to update the existing leases with me (if I do that at all) of course with their same current lease agreements in tact  just my name changes over the current property owner. Also more importantly when is it ok to get them information to join Rentredi for me to be able to collect rent on the 1st? I have a feeling this should be done before the Close as the next day is the 1st of the month?

Thanks

Ate