All Forum Posts by: Frank Chin

Some additional detailed information for deceased owners or owners that cannot be found. See:

Notifying owners of abandoned cars

You'll have to send the notices to his last known address, and if you know he's deceased, "The estate of NAME ..." If you receive no answers, there is a requirement you post notices in local publications a number of times, when and where detailed in paragraph 3. Yes, it takes a little work. Theoretically, if there is an estate, the executor or administrator of the estate will respond and have the power to sign over the title. I'm not an attorney but we just concluded an estate where my wife is the executrix.

This compares to the police just issuing a tickets, let a "salvor" tow it, and be done with it, if all you want is to get rid of it. You'll have to judge whether the condition of the car is worth all this work, legal fees if any, and getting the car into working condition.

@Marita Jojo

Here is a writeup on procedure you have to follow to have the ownership of the abandoned vehicle transferred to you via court order in PA. See:

Transfer title abandoned vehicle

Follow page 2, paragraph 3, and the sample court order. You may have to consult an attorney, or "salvor" as owner is deceased, and the case might be in probate court, though unlikely as 3 years have passed. The law requires notification of owner, and notice to last known address. A "salvor", usually a towing company may be best equipped to handle this as they deal with these on a day to day bases.

@Jay Hinrichs

I had dealt with this issue over the years handling rentals, more particularly with cars parking in driveways at my rentals, as well as tenants who moved out of state leaving their cars behind. I first have to all 311 to have a summons issued by the police before a tow company will come to tow it, otherwise, it's a no go. Then the tow company gets to keep the car and charge towing and storage fees from the car owner, or sell it al auction if not claimed. I don't get charged any tow fees. Legally I have to prove I'm the owner of the property, or the lessee of the parking space or driveway.

I had a funny incident that happened. Rented a garage to the super of a local apartment building. He had a car parked in front of his driveway, called the local police station that's a block away who knew him personally, says he needs a summons issued. He went back to his office to wait for the summons to be issued and also called the towing company to be ready. Half an hour later, he came out and checked, the car was gone. So he proceeded to take his own car out, remembered he left something in his office across the street from the garage, parked his car in front of his driveway, gone in for 15 minutes, came back out and found the summons already issued to his car by the police and the tow guy coincidentally came by quite promptly and towed his car, thinking it's the illegally parked car. How could that happen? Seemed nobody confirmed the plate number or make and model of the car.

He said he didn't expect the police to act so quickly because it often takes forever. It's an area where parking is difficult so people often park for a few minutes in front of driveways. Normally, you honk your car horn till the offender shows up, often in a few minutes.

 It's considered abandoned property and each jurisdiction has it's own procedure. If it's Philadelphia, see:

Abandoned car procedure

@Mindy Jensen

I am using ClearNow and Zelle

New York State law requires me to accept rent payments using cash, or check so I tell people I'll only take money orders for those that has a record of NSF checks.

My tenant with NSF check history who paid me cash fell in love with Zelle saving him to time and expense of buying multiple Postal money orders, 3 of them, and driving 30 minutes or more to my house. He was dropped by ClearNow due to several insufficient fund payments but was advised they'll take him back.

ClearNow had provided excellent service in the 10 years I used them.

@Jeffrey Vanicky

One other issue in putting your home in an LLC is you'll lose your homestead exemption, which in some states, such as Florida, is far more valuable than an LLC.

I'm in NY, have my business in LLC, and advised by attorneys that you get sued anyway, for negligence in the event something goes wrong. If I don't shovel snow, there's a slip and fall, I can't say "too bad, so sad, you're out of luck, my house is in an LLC". The only way to protect yourself is good liability insurance, or get a PM with his own E&O insurance.

I bought a business from an S Corp owner thinking the S Corp would protect him, got $1 Millions liability insurance, was sued personally anyway for $3 million and the court refused to drop the suit against him personally. How did it turn out? He retired to Florida, bought a home with proceeds of the business sale, and was protected by the FL homestead law. The suit was settled with the insurance proceeds due to the homestead law.

He thought the S Corp protected him, wrong on that, but he knew nothing about homestead laws, and lucked out. My employees who was at the deposition hearings said the plaintiff attorney was shocked and dismayed to learn he moved to FL., banged on the table on hearing that, and gave up afterwards. I got a good laugh on hearing that.

@Genny Li

I got tenants from two ends of the competence spectrum.

One tenant, a young fella move just moved out of his mom's place. Called to complain his bedroom doorknob is loose, about to fall off. I said, "no big problem, there's two screws you have to tighten". Some hesitation, he said "I don't own any screwdrivers, is there a certain kind I have to get?". I said, "doesn't sound like an emergency, I'll get you guys a screwdriver set, but there's different screw heads that I'll have to show you if you never done it before".

On the other extreme, I got a middle age tenant who used to be a home improvement contractor, belonged to the sheet metal workers union working for a municipality, was furloughed at one point. I had the SFH rental for a few years, and noticed the gutters were starting to look crooked, which my tenant pointed out to me. I was going to obtain estimates to get it fixed, but before I got to it, passed by the property and noticed the gutters are all straightened out. They were home, went in and asked if he fixed it. He said "yes, the gutters got loose, so I took them off and nailed them back with longer nails, and it took him two days work". He re-nailed all the gutters with longer nails, and showed me the nails he bought. Before I asked why he did it, his wife spoke up "I got tired of him sitting on the sofa complaining about being bored, so I told him instead of complaining about the gutters, get off your butt and straighten it out". I offered to at least pay for the nails, but he waved me off saying, "it's OK, no big deal". So I told his wife, I'll make a list for you guys to work on in case he gets bored again.

Since then, I give preference to older blue collar guys, with families, rather than young MBA types, just finished collage, has impressive job titles in investment banking, but can't figure out how to tighten door knobs, or know shower curtain go inside the tub, not outside, so water won't leak downstairs.

@Sooyeon Kwon

When you obtain an owner occupied mortgage, you're expected to move in within two months and stay at least a year before moving out. You had to live there at least 2 years some years back.

I don't know too much about how they do random inspections. Some years back, a co-worker of mine found someone checking her mailbox out by the curb, then walking to her back yard on the way home from work. She asked the man what he was doing there. The man explained he was hired by the bank to verify owner occupancy of mortgages that the bank extended, and she agreed to such verification when she signed the mortgage documents. She actually live there, and verified who she was.

If I were you, I would work out something with your landlord, advise him what is going on, and offer to help him rent out the place. A tenant of mine had to relocate for a new job, had to vacate in the middle of a lease. He offered to advertise on the internet, interview applicants, provide me with the top three candidates so I can vet and approve. He did that, moved, and the replacement tenant moved in 3 days later with no vacancy. He hired a cleaning crew to clean the place.

He managed to get the place rented out for $150/month more than I thought, and the new tenant had been there now for several years. I had many tenants move out in the middle of leases in the 40 years doing rentals, for a variety of reasons, such as death in the family, job relocation, buying a house etc. and I found it best to work with the tenants.

If the bank find out you  rented out a property with a owner occupied mortgage, they can revoke the mortgage and demand payment in full. All in all, honesty is the best policy.

@Lauren Cutchen

Have you checked to see if it is permitted under zoning restrictions in the area. Hate the see you get the loans, spent it all on renovations, and you're ordered to convert it back.

I'm putting my "city planning" hat on, and zoning in most jurisdictions is under the city planning department. Usually there's a master plan for the area that allows for so many properties, of a certain size, for a certain population, that requires certain size power grid, sewer, water, roads, parking etc. The rule is if you allow one property to do this, you'll have to allow everyone. In my area, such drastic changes requires a variance, a public hearing, and even a public vote.

Usually, a visit to the planning department to ask about it will give you a good idea. My dad rented an apartment back in the old days was two railroad type apartments, 8 rooms total, to a family of 4, with the tenant saying it's great that each kid can have it's own room, and they can have rec rooms, offices etc. What happened? They were Vietnamese refugees who made it into 6 bedrooms, with two bunkbeds to a room, and rented out by the bed. That's 24 people. Neighbors were complaining about all those people coming and going, taking up all the local parking spaces. What a nightmare.

@Kim Leduff

Simply put:

1. Basis is what the building value you paid for it regardless of how many years ago it was.

2. Depreciation of 27.5 years starts when you rent it out, not from date of purchase.

3. Cash out refi has nothing to do with it.