All Forum Posts by: Chris Martin

OP here. Just wanted to update that we ended up offering the tenants an "out" of the lease, expressing that we understand that the pandemic was creating uncertainty but that we need them to pay rent. They still wanted to move in and have been paying rent each month. They've been very easy tenants actually. 

Sure, I will update with how it goes.

We are going to give them an "out" and see if they take it. 

They are on month-to-month. We are in a market where, when there is no pandemic, there is fierce competition for rentals, so month-to-month is works for us. I guess if we really wanted to be aggressive, we could tell them we plan to cancel the lease after the first month, but that seems like it could invite antagonism--and in the meanwhile, they are responsible for taking care of a pretty expensive asset.

We do have another cheaper unit that is open. I think I will offer them that. I want to be fair and not leave them in the cold, but we also have mortgage to pay. 

We have planned for some vacancy, but of course, we don't want unpaid tenants if we can help it, especially in our priciest unit. 

We learned they lost their jobs because the business they both worked for closed due to pandemic. In other words, it's public knowledge.

They have made their deposit, but if they move in, I do not think they will be able to pay rent for long. I am thinking I will approach and see if they want to cancel. 

We recently signed a lease for a higher cost rental (3K per mo.). Tenants are slated to move in soon, but we have learned the tenants lost their jobs. 

How would you handle this situation?

I forgot to add that we have about 220k in equity on current home

Hi All,

I'm looking for some input on qualifying to purchase a second home.

Our current situation:

• Own 3200 sq ft home worth 750K in competitive rental market with 3 units, and currently rent out 1 small unit at 1600/mo.
• Whole home would rent for at least 5000/mo.
• We know we qualify (using just our incomes) to purchase another 650 K home (keeping out current home as rental). 
• We found a home we like for 850K, but are not sure we will qualify based on only wages to purchase without selling current home.
• But since we can turn a profit on our current home, it does not make sense to sell it--we'd actually be bringing in less money.

Are there banks that will loan using projected income on our current property? We've been renting out 800 ft of it for 1600/mo for over three years.