All Forum Posts by: Karmina Luna-Dominguez
Karmina Luna-Dominguez has started 2 posts and replied 4 times.
Post: Commercial Lending Options
- Posts 4
- Votes 2
I'm currently under contract for my very first property! Hoping to close at the end of February! My goal is to have another property by the end of the year; however, I'm struggling ways to leverage cash for my next deal. Since my current property is a 7 unit, I had to go through commercial lending. I tried looking around for a lender that will do a HELOC on investment properties with no luck. I was told this would be considered a business line of credit? On the BP Rookie show #55 Ashely mentioned options for commercial lending - anyone know how I can take out cash and leverage my current property with the commercial lending side in order to make my next goal? For local lenders I'm investing in Rochester NY area. All and any advice is appreciated!
Hello, Rookie here! And I just booked my first deal!! Closing late Oct in Rochester NY! Pretty excited! I got a 4 Unit Complex with long term tenant who seems to be current. But need some encouragement because I’ve been reading up on tenant laws in NY and listening to podcasts that are starting to scare me. If a tenant is late, they have up to 14 days to pay, however if they hold up in court for a valid reason, they have another 14 days, that’s almost a month. Which means they’re almost due for the next months rent. Does that mean they have to pay the double rent they missed from the previous month, or did they just a get free months worth of rent? What are causes where a tenant can end up living in your rental for free for a year? Also can a seller hide the fact the tenants can be squatters in the property? Sorry now I’m being pessimistic with all the things I’m hearing.
Did I do the right move investing in NY? What are the benefits in investing here? Any good stories?
Post: NY & the new Landlord/Tenant Laws
- Posts 4
- Votes 2
Hello,
Sorry first time using the forum. I got my first deal in Rochester NY and will be closing in late Oct! I have so many questions regarding the tenant law in NY.
I’m inheriting tenants with this first deal, are the sellers obligated by law if the tenants are current on their rent or if they’re behind? Can sellers also sell a property that has squatters without disclosing it?
Post: NY & the new Landlord/Tenant Laws
- Posts 4
- Votes 2
Quote from @Michael Ablan:
- The old 3 day non payment demand for rent is now changed to 14 days
- A tenant can automatically ask for a 14 day adjournment at court and have it granted
- Once a warrant has been issued, it cannot be enforced for 14 days (changed from 72 hours).
- A tenant can request a hardship and be granted up to 1 year to remain in the unit
- Late fees are capped at $50 or 5% of the rent (whichever is higher). The landlord must give the tenant a 5 day grace period, and must send a certified letter before they can begin charging rent.
- Landlords are no longer allowed to charge application fees. They may charge up to $20 or background/credit screenings
- Landlords may no longer deny tenants based on prior evictions or other landlord/tenant disputes
- Month to month tenacy must be terminated in writing as follows
- 30 days if tenancy has been less than 1 year
- 60 days if tenancy has been more than 1 year, but less than 2 years
- 90 days if tenancy has been more than 2 years
- Court dates must be scheduled 10 days out from the notice of petition, rather than 5 days
- If you are evicted for breaking the lease rules, the court must give you 30 days to delay the eviction for you to fix the problem
This is just a handful of the changes. Some of these are an absolute disaster, especially in regards to how many opportunities a tenant is given to delay the eviction proceeding. Essentially they're being given an extra 1-2 months to live in the unit for free.
I'm super careful with my screening and placement, but I always seem to have issues with inherited tenants. I now have to assume I'm going to be stuck with these leeches for 2-3+ months. That doesn't even factor in the possibility of them getting granted hardship, which can allow them to stay in he unit for 1 full year rent FREE. That would absolutely sink the investment in the SFH landscape.
I guess I'm looking to hear from other landlords who operate in super tenant friendly states. Do you avoid class D & C investments completely? Do you budget in higher operating costs when doing due diligence? When you buy properties, do you demand the tenants be removed before closing?
A part of me wants to flip this state the finger and head south, while the other part see's an opportunity to pick up deals from investors who can't/won't change to the new landscape.
Thoughts?