All Forum Posts by: Nicholas Jose

Thanks for sharing your experience, @Mark F.. Perhaps the situation we're in right now is similar to what happened in 2008-09. Did you close under your name when you closed on your SFR?

Currently, I'm stuck at my 9-5 job here in Jersey. My goal is to house-hack a duplex via FHA sometime next year and use the cashflow to purchase my next duplex. But between now and then, I'm playing defense by saving my paychecks to secure my downpayment + reserves; using eforms and ezlandlordforms to create a system (i.e. generate leases, pet addendums, estoppel certificates, rent reminders, notices to vacate, etc); reviewing a variety of insurance policies; knowing how to split utilities between the landlord and a tenant in a duplex; dealing with inherited tenants; learning how to read the market in order to raise rent; and a bunch of other things before I close on my first property.

I'd like to hear stories from fellow New Jerseyans on how they used FHA loans on duplexes (or perhaps any property up to a fourplex) to build up their portfolio. Although books and forums are a great source of information, nothing beats the stories of real-life experiences.

By saying that there's a one-time "non-refundable pet fee", would it imply that the monthly pet fee refundable?  I think I'm overthinking this

Because interest rates are terrible in savings account, would this mean that a Landlord would write a check to a tenant for 34 cents (if the tenant so chooses) either when the tenant's lease is renewed or on Jan 31st?

So would the $30/mo fee be refundable lest the new pet causes damage to the property? And if there's an authorized pet with a $30/mo fee that caused no damage but the previously-unauthorized-but-now-authorized pet did cause damage, do both $30/mo fees become nonrefundable?

Good evening, BP.

Simple question: Let's say I have Duplex #1 with a checking and a savings account. The checking account will collect tenant #1's rent, whereas the savings account will hold tenant #1's Security Deposit + interest.

Fast forward a year and I decide to house-hack into Duplex #2 via FHA. I move into Duplex #2 and tenant #2 occupies the unit I used to live in in Duplex #1. Now the checking account collects rent from tenants #1 and #2 and the savings account holds the Security Deposits from both tenants #1 and #2 + interest.

Suddenly, tenant #1 wants to vacate from Duplex #1, so now I have to send the Security Deposit to him/her. The problem is: should tenant #1 receive all of the interest? Can I split the interest down the middle between tenant #1 and tenant #2? Should I open another savings account dedicated to tenant #2?

So I've revised the New Landlord Transition Letter based on everyone's suggestions. When typed on Microsoft Word, the entire letter is kept to a single page. Please let me know what you guys think:

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[TODAY’S DATE]

[RESIDENT’S NAME]

[STREET ADDRESS]

[APARTMENT NUMBER]

[CITY, STATE/PROVINCE ZIP/POSTAL CODE]

Re: New Landlord Transition Letter

Dear Mr. [RESIDENT’S LAST NAME],

My name is Nicholas R. Jose and I am the new Landlord of the Leased Premises. As you may have been aware, this residential property will be purchased by me on [CLOSING DATE], and the resulting change in ownership will take full effect on said-closing date. Your current Lease and payment terms are recognized until [DATE]; however, moving forward, please send all payments, maintenance requests, and correspondence to the address listed at the top of this letter.

If you are currently using an automatic draft, cash deposit, or other form of payment to pay for your residency, please contact your financial institution immediately so as to avoid any late fees and/or eviction notices.

Additionally, because it is essential for me to have all of your important information on file and up-to-date, I have emailed you a Tenant Estoppel Certificate for you to fill out. Please complete this document and return it to me via email no later than [CLOSING DATE].

If you have any questions, comments, or concerns, please feel free to contact me between ##:## am to ##:## pm. My email address is [XXX] and my phone number is (###) ###-####. It is recommended, however, that you reach me through email. Finally, in case of an emergency requiring urgent attention, please contact me on my cell phone anytime at (###) ###-####.

Sincerely yours,

[SIGNATURE WRITTEN IN PEN]

Nicholas R. Jose, Manager
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I see, I'm beginning to understand. My letter as it stands now is written after I closed on the property but before the tenant has given me the estoppel. I'll rewrite the letter to reflect this revelation.

Okay, I just made a tenant estoppel certificate from eforms and will look to see if it contains all of the above information, and then some. Thanks for your help, it was really insightful.

@Anthony Wick @Sandra K Shirah I have modified the paragraph in question to the below draft:

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Additionally, because it is essential for me to have all of your important information on file and up-to-date, I have emailed you a Tenant Estoppel Certificate for you to fill out. Please complete this document and return it to me via email no later than [DATE]. Failure to do so ...

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So what if the tenant does not return the Tenant Estoppel Certificate? Would this mean I start the eviction process?

Although I'm just starting out and don't know too much, I would think having your tenants sign estoppel certs during escrow (as @Aaron K. suggested, to which I just learned) is necessary so as to avoid any unwarranted legal disputes. Maybe it's a personal choice, or it depends on which state you're conducting real estate business.

Duly noted, I'll further revise my letter. (This is kinda fun haha.) I assume that I would have all of the tenant's information, such as his or her email address, during escrow? If so, I could probably instruct the tenants to print out the relevant documents, fill out the paper work, scan the files, and then email me their completed forms.