All Forum Posts by: Caroline Gerardo

Need to read what the restriction says in full. What you posted means STR is a no. What are the consequences mentioned? They will catch you on the license and the ads. City permit means nothing, it's just a tax.

Keep it simple. 

1. Market rents today = X deduct 25% off that = around what you collect if you are good, the property is in an A Class location. You will have vacancies and damages.

2. Actual hazard insurance use .5% today it's increasing; and 1.6% for a round number on property taxes. If in flood area add 1% These are a percent of the value annual.

1 -2 = X

How much reserves do you have for a year. Add up all your bills monthly on your credit report- mortgage, taxes, insurance, auto loans, student loan balances X 1%, any other debts  and multiply that total X 12 = the amount of savings you need.

IF you decide to get mortgages keep your income total to 36% of every single debt.

Here is a general list to start. Edit what details you don't need. It will take you hours and hours on the phone to get this. Problem is rates change twice a day for conventional so shopping rate isn't the best avenue. 

FICO NEEDED

Points

Underwriting processing fee

Loan to value

Minimum loan

Down payment

Reserves

Property type

Condo requirements

Non warrantable condo

Rehab

Cash out

Vesting requirements

Borrower type

Number units

4-8 units

FHA Loans

USDA Loans

VA Loans

Fannie/Freddie

Prime Mortgages

Jumbo Loans

DSCR Loans

Bank Statement Loans

Foreign National/ITIN

Alt-Doc Loans

Non-QM

CDFI

Rental Loans

Hard Money

Due in X

Prepayment penalty

Buy out of prepay

Fix & Flip

Bridge Loans

P&L Loans

Nonprime

location of subject property, valuation, property type, currently rented for, is it in flood zone, experience of ownership determines who is lending. How many units in each market in the buckets. There are about ten in the US and they don't lend in every state. 

There are dollar amount minimums. Property has to have comps that closed with a loan in past three months. Property must be in rent ready condition no rehabs.  You need a good to great FICO. Do you meet those? DM me the address and I can look to see what is your wall to climb.

@Christian Chartier

then choose a loan with a two year prepay penalty and no points, wait and pray rates dip after 24 months. Paying points only promises the lender a profit by not paying them off. Points are cash. 

Ask everyone to kick in- your agent to give you $1000. Yes I'm saying penny pinch.

Negotiate seller to pay owner and seller title and settlement costs, often they don't understand when those boxes are checked. 

Have a trusted independent hazard insurance broker that doesn't require a year paid upfront.

Have an inspection that can ALSO be used for county/city planning to okay health and safety codes. Ask the inspector in writing to promise a date down or update for free after you do what is needed.

Do work yourself. Have your family pick up a paint brush. Do you have children? Mine learned how to fix, rehab, build anything by doing.

Be kind and make food gifts for those who pitch in and penny pinch. Give the project a positive name. Granny's Happy House; Laughter Lane; Sunnyside Up; Golden Gardens... paint a sign for it and carry the theme, a mission statement... 

ARM with everything the same (FICO LTV property DTI...) may be a higher rate by .125 today. Interest only you will be paying points upfront as every lender has fear you will early pay them off, and once you calculate those points even over 60 months the rate is higher.

You are looking to shave off costs to make it cash flow? Shop your hazard insurance, raise your FICO, put a larger down payment to get the PITI down.

@Michael Smythe  the link you provided is from humane society who champion animal rights. I have pets. Emotional Support animals are protected and he cannot refuse however: Person moved in without the animal. Emotional support letters are from health care professionals such as therapist, social worker, member of peer support group, parent or child. We don't know how PM decided it's fine. She had a ESA that died and this is replacement puppy that meets her emotional, cognitive, or similar support to help with her disability? Landlord can't ask what the specific disability is named and can't charge anything extra. There are some exceptions: if landlord can prove it causes undue financial or administrative harm to landlord; the animal is a direct threat to the health or safety of others (bodily harm)... Say her ESA is a cow and this is a condo with no yard (just to be extreme) or this dog is a barking nuisance with many complaints, bites some children, and has rabies.  PM is right landlord can't interfere, it's wait and monitor what happens.

ESA is not a service animal that's different. Service animals for example: guide dogs that help blind persons are allowed in public buildings and they are trained to do a job. 

PM has some 'splaining to do Lucy. PM never inspected? Mold and vanity on PM. Sounds like a dog left unattended - maybe PM would have noticed this. How long did they live there?

I think small claims is a good solution if they have jobs. Costs $200 and eventually they will pay.

Never threaten. Saying you will garnish wages etc... they know this. 

"Please send $2300 to PM by 2/15 at 5:00." no response or argue then file and serve them with the Sheriff. They can still settle before the hearing, accept $2400 if they settle before the hearing and call it a day.

What is the damage? Can you document with before and after photos, bids from licensed contractors to return to original condition, the damage cannot be usual wear and tear, are you able to go to small claims in the subject property city? Hiring an attorney maybe is too costly to attempt any recovery. Get their move to addresses, date down verify where they work, and that you have current ID/social security numbers. Small claims is often on Zoom, depending on location. IF title is in your name file and upload your paperwork. Most states favor the tenant so you need a large amount of paperwork proof. Then if you win keep the judgement current and someday maybe you can collect.