All Forum Posts by: Kenan Heppe

The duplex will be delivered entirely vacant. However, it may take about six months for me to move there. I was hoping to rent one unit out long-term. The unit that I intend on living in later, I was hoping to rent it out short-term to somebody. Can someone help me understand my rights vs. tenant's rights in this scenario? It seems that in rent-controlled L.A., even if a lease term ends, they don't have to leave if they don't want to?

Let's say, for example, that I sign someone up for a six-month lease. Six months comes to an end, and I don't want to offer them a new lease. I know for the state of CA, if a tenant has been present for less than a year, a landlord need only give 30 days notice, and it doesn't require any reasoning. But I think this doesn't apply to L.A. (which is more strict). If the tenant doesn't want to leave, am I hosed?

Hey everyone!

I'm looking into purchasing a duplex in L.A.(Hollywood), with the intent of occupying it myself. I've read on some sites that an owner-occupied duplex would  be exempt from rent control restrictions. Does anyone have the actual legal literature on this? I can't find the actual written legal rent control ordinances anywhere. All I find are blog posts or unofficial lists/pdfs/summaries. If anyone has the actual law that would be specific to the Hollywood area, that would be wonderful!

If someone could message me about Corvallis, OR, I'd love to connect! I graduated from OSU in 2011 and would like to consider the area. 

Hello BP world!

I'm wondering if anyone knows how a mortgage entered into with an investment partner would affect each person's future DTI calculations from the perspective of a lender. If you're both equally responsible for the loan, does only half the PITI count toward your personal DTI, and the other half to your partner? Or does the DTI debt amount increase the entire amount for both investment partners?

Thanks,

Kenan

Thanks for your replies, guys!

Hello wonderful BP World! I hope to get your take on this subject.

I'm hoping to co-purchase a triplex in Los Angeles County sometime in the next six months. Obviously, this is a very turbulent time for many reasons, rendering financial analysis slightly less reliable. Some people believe there is an inevitable housing price dip coming, but some people believe that couldn't be further from the truth, because of the moratoriums.

L.A. County has yet again extended mortgage and rent relief, this time through July 31st. These policies, once expired, don't force renters or landlords to suddenly pay 3-5 months of missed rent/mortgage. Rather, mortgage lifetimes are simply extended for the same duration of time that they were paused. And landlords will receive rent relief to cover lost rent payments. It seems L.A. is doing everything in its power to prevent homelessness and a housing crisis.

Given this information, what really is there to justify the thought that a crash could occur? I suppose the main question is...how long will Banks agree to allow these moratoriums to last? How can we, as investors, predict or evaluate such possibilities? Moratoriums can't just keep going forever. I'd love to see your thoughts!

Hey @Anthony Petrozzella, @Alyssa Dyer, @Mark Keeler, @Ron Todd

I'm also interested in investing in OKC. I'd love to connect!

P.S. You'll want to make sure they file the correct forms to deduct these amounts from their lifetime gift exemptions. Keep in mind, I believe it's 11.38 million per person. So, they can give you a lot of money tax-free through this set of rules, but they need to file the correct paperwork and please, of course, triple-check everything I've said with a licensed accountant. 

Hey Prashan,

I have good news for you! According to the IRS, in the year 2020, a person can give a tax-free gift of $15,000 each year to somebody. This means your parents can give you $30,000 and they do not pay taxes on it (15K per parent). If they give you more than 30K, they can simply deduct the remaining amount from their lifetime gift exemption. I'm assuming that, because they are in this financially distressed situation, they have not given more than 11.38 million dollars away in their life. 11.38 million dollars is the amount of money you can give away throughout your life without paying taxes on it.

So, if they want to give you 100K, you'd first subtract 30K from the yearly amount, and then deduct 70K from THEIR lifetime gift exemption amount. I'm not an accountant, but I've read a lot about this. So, don't take my word as final on this, but I believe I'm correct. Research lifetime gift exemption.

Hey @Courtney Richards! Great to meet you here.