All Forum Posts by: Jude Campbell

Hi Christian!

Ohio is often considered pretty balanced when it comes to landlord-tenant laws.  Like any state, there are specific regulations you must adhere to.  

Here are a few I would suggest as important: landlords can evict tenants for non-payment of rent or violation of lease terms - Ohio requires a three-day notice to vacate for non-payment of rent; landlords must return deposits within 30 days of tenancy termination; Ohio law protects tenants from retaliation if they've reported a violation to a government agency, joined a tenant union, or exercised a legal right.

Reach out if you have any questions!

Jude

Question #1 - Kiddie Condo in Oregon: The kiddie condo loan is essentially an FHA loan that allows a parent (or relative) to co-sign a mortgage for a child.

Multiple FHA Loans: Generally, the FHA only allows borrowers to have one FHA loan at a time. However, there are exceptions, like the ones you mentioned (Family Opportunity Mortgage).

Eligibility: As long as the property in Oregon will be your son's primary residence, and you can demonstrate a valid reason for the kiddie condo loan, you may qualify. The two existing FHA loans *might* be a hurdle.

Question #2 - Moving Father Out of State:

Qualification: Given that you've already utilized the Family Opportunity Mortgage for your father, moving him to another property under the same program might be challenging. Lenders may want to ensure that there's a legitimate reason for the move

Each county has its own FHA loan limits. Ensure the properties you're considering fit within these limits.

Reach out if you have further questions!

Jude

- Are there any considerations to made for the screening of current tenants when a property changes hands?

You're definitely rolling the dice a bit on student housing.  Look to see who pays, credit check, etc. In some cases, parents are paying.  This takes some pressure off.  Try to take note of which year they are in to see how quickly they'll turn over.

- How often do situations like this arise? What is the best and worst case outcome?

Best case, everything is fine, you might have to do some patch jobs and paint when the current tenants leave (call it a couple hundred $).  Worst case, like any place, up to your imagination; slightly greater chances with students but most are fine.

- From a risk perspective, can inheriting tenants turn a 'go' into a 'no go'?

The thing with student housing is that it turns over so quickly.  In college, most groups of students only really stay for a year, in some cases two and very rarely, three.  In the grand scheme of things, if you have poor tenants for a year, it's probably not the end of the world; just comes with a few headaches.  You have to think for whatever reason they're going to really ruin your investment before I'd advise no go. 

Reach out if you have any further questions. 

Jude

Short-term rentals are often governed by local ordinances, so the rules can vary not only by city but sometimes by specific neighborhoods or condo associations within a city. Cocoa Beach does allow STR but it becomes each property might come with more specific criteria.

Happy to help if you have any further questions. 

Jude

Hey Jimmy!

The idea here is to use the mail system after having identified properties in which you think the seller would need to extract their equity.  Distressed properties, estate sales, absentee owners would all be good candidates for this. You'd then compile a mailing list with target properties and state your interest in the property.

The problem is that most people who want to sell their property have already taken marketing measures, like contracting an agent or post on MLS.

Happy to chat further about this!

Canadian citizens can be members of a U.S. multi-member LLC but it would come coupled with tax and reporting complexities.

Deal structure and sizing would have a big impact on path of least resistance. 

The business entity, whether an LP or LLC, can originate from Canada if the investors already have one established. Alternatively, it can be set up in the US if there isn't a pre-existing entity.

American lenders are reluctant towards Canadian personal income for debt financing but an existing LP or LLC with a relatively consistent cash flow can be more appealing to them.

It might also be advisable to keep two separate entities if they're the capital partner & have the other entity funnel a % of profit (predetermined) to you, like a fee with a retainer basis. 

Given the complexities of cross-border transactions, I'd look to both a cross-border attorney and an accountant.

Makes sense!  Investing out of state can be daunting, especially for a first-timer.

Sent you a connection request.  Happy to chat with both you and your partner if you're interested. 

Hey Hunter!

1% rule should be easier to find in today's market than it has been previously.  That said, San Diego struggles with low gross rents relative to purchase price. 

Not sure if you've searched beyond San Diego but you might find some better success elsewhere!

Happy to discuss further if you're interested. 

Jude

Hey Harrison! 

I do consulting work for investor clients. 

Sent you a connection request.  Should be able to help on this. 

Jude