All Forum Posts by: Caroline Gerardo

 Emotional Support Animals are not protected by the ADA or Tennessee's SERVICE ANIMAL LAWS. There's a difference. Get the paperwork supplied to Property Management, say nothing tread silently, after you receive the paperwork don't discuss with tenant or PM. Look at the dates, what is her disability?, what type of animal is needed for the diagnosis? She finds a puppy right after move in who likely is not trained as ESA or a Service Animal. Are there other lies in her application? 'just saying. 

You cannot charge anything extra. Your insurance can cancel you. Tennessee follows federal HUD laws. The Fair Housing Act (FHA) protects individuals who have emotional support animals. here: https://www.hud.gov/program_offices/fair_housing_equal_opp/a...

Any dog can be a calm good pet with proper training. Monitor that this is true without accusation or emotion.

First time home buyer to qualify for certain down payment assistance programs and loans is a person who has NOT owned for the past 36 months.

FHA doesn't require you to be a first time home buyer. There are also conventional loans that may be more suitable for you. Assuming you have the income for past two years to qualify. If wife recently graduated college then started a job her degree gives her the two year history.

Leasing back to him excludes doing a conventional loan. Underwriter is going to say not an arms length transaction. Also 99% of DSCR lenders will say no due to the special dealing.

Close with hard money. You can't qualify for a HELOC on the rental due to DTI? Ask the hard money to cross over the rental and this property which is sticky and messy as they may force you to sell both if things go badly. You need a hard money guy who knows you as they will say you have no skin in the game.

The rents that the seller pays (discounted) are going to trip up trying to refinance out of hard money as any lender will use the lower amount to qualify thus cutting your loan down to be able to make the rents cover PITI. This is a only a short term hold for 18 months and sell because of the structure.

Change the title Now to a Living Trust. With a HELOC they don't run a full title report. Changing the title DIY may have messed with the title that you paid for and Underwriter may deny your loan based on the fact that they cannot piggyback on the short title (this is how HELOC's are cheap). Provide a copy of the Living Trust (a short form one) to the bank if or when they ask.

Prop 19 allows someone over 55 to move the basis three times.  It also does allow transfer after you die to your children with new rules about the basis. Is the value greater than one million plus what you paid and improved?

Rules here:

https://www.boe.ca.gov/pdf/pub801.pdf

https://cgbarbeau.blogspot.com/2024/02/california-propositio...

A new roof, though necessary, has almost zero value added in a residential appraisal. 

Be cautious with as you say a tired landlord and tenant in place, likely the tenant is not paying.

Things you can do with tenant in place: curbside appeal, paint exterior~~ what does it need?

Delayed financing allows recent sales price to represent valuation with an appraisal the lower of the two counts, no light rehab is added in...

The secondary suite "ohana" is going to make comps very difficult. (why I asked about comps)

Incorrect. You sign several times saying you cannot sell or transfer the deed. You need permission from Fannie or Freddie to change the deed, which is rarely granted. You are NOT exempt from servicer/trustee/lender calling the loan. Transfer to Land Trust is a SALE and the note is due on sale.  Garn-St Germain Act does not give you a $200 Monopoly get out of jail free card.

@Wayne Brooks Wayne have you ever got a legal agreement from Fannie after closing to allow you to transfer to LLC? Please post any such agreement while blanking out personal information. My guess is zero people on BP can show this. Hundreds of gurus tell you to pay for their asset protection plans and "it's all 'gonna be okay to ignore the contracts you signed."

Here is the problem with owner occupied remote: 1. the house has to be inhabitable soon after closing or you will get hit with housing costs X 2 which probably makes qualifying a problem. 2. most lenders want a letter from your employer stating you can work remote for 36 more months in the future (few employers are willing to promise this). 

You mention current rent rolls/income so this means you own other rental properties, yes? Most Jumbo lenders use IRS returns net number so be careful filing your 2023 tax return in not making the expenses total greater than 25% of income which will generally be the hit on gross rents. 

Permits in Maui take 325 days IF you put the pedal to the metal and have your architectural plans, cost breakdowns, and NEVER change a thing. So to break ground is almost a year away. $400 rehab -what exactly are you doing? Are you thinking only interior cosmetic no plans? 

Primary with some major renovation needed? How long will the rehab take? Are there comps (closed with a loan at three million)? Owner occupied but you live in CA do you have a job in Hawaii to show full doc? 

1-4 units Fannie loans never allow Land Trust vesting. You could put it in a Living Trust with the trust name being some derivative of the address; HOWEVER, conventional your name shows in the signing. Conventional are personally guaranteed, show on your credit and the hazard insurance has to also match the vesting. Your lender lacks experience. If you close in your name and transfer the deed after it is a SALE this can trigger the lender to call the loan, you can't get insurance to match the note and they check. When you sell to your new entity vesting your title insurance is no longer valid, and you owe transfer taxes. The transfer deed also shows YOUR NAME and makes you visible to the public forever.

If you are stuck on the Land Trust/LLC that you set up you need to switch lenders and do a hard money loan.