All Forum Posts by: Patricia Steiner

To avoid a larger discussion, I recommend signing up for online statements.  Have all communications come to your email address as well and place a do not mail notice with the mortgage company (infer that you can't trust mail delivery in your area or something of the like - which isn't lying because you won't be there to get it!).  Know that if you file a change of address with the post office, the mortgage/mortgage service company will receive a notification of new address from the USPS as financial mail is sent with "address correction requested."  If you have recently closed (still trying to avoid the discussion), you may not want to bring attention to the fact that your "owner occupation" declaration was pretty much for entertainment value only.  

Hope this helps...

So much for renting to nice married couples!  Because some of their complaints were valid - including the mold - I would agree to an early termination of the lease provided they leave the property in good condition with no personal items or trash left behind, and that they be out by (set a time; I've seen 3:00 to 5:00 p.m. used most often) on November 31st.  I would also let them know that you will be marketing the property for re-lease and that you will expect their cooperation with showings prior to their departure.  When they leave, do a walk of the property with them, take photos, and get them to sign a release that states they are voluntarily terminating their lease prior to lease end, that all personal property has been removed from the premises, and that there is no further obligation on either parties' part.  This eliminates any future claim regarding the mold and/or any damages they feel they are entitled to because they "HAD" to move.  "Nice" people do things that aren't so "nice" all the time so just watching your back...

And, congratulations - they will be gone!  Some victories come in disguise... 

No words...no excuse.

What is the valuation for the property. Properties of 4 units or less are valued based on comparable sales. You might also want to check with your lender before attempting to negotiate anything because FHA is for a primary home - and two separate buildings would be hard to pull off under that scenario. Bottom line: never enter into negotiations without having the research done, your financing in place, proof of funds to close - and I recommend you engage an investor savvy realtor to represent you. The realtor can do the valuation for you and make an offer to the seller that is solid and seamless. Best yet, you don't pay commissions as a buyer.

The price isn't the biggest issue for you...it's what is it worth (it may be even less that $1.3!) and is it FHA qualified. Best...

I am curious why you are coming to a real estate investor forum for advice.  I also think it's interesting that you have a horrible landlord, a mold ridden building - yet you moved someone in with you - not only violating your lease but exposing someone else to this toxic mold.  That's on you.  A few things to know:  mold is everywhere. Not all is toxic. And, a general mold inspection from a licensed and bonded inspector generally costs $500 for a small apartment - the kind that stands up in a lawsuit.  A general blood test won't detect mold allergens.  As you probably know "A blood test, sometimes called the radioallergosorbent test, can measure your immune system's response to mold by measuring the amount of certain antibodies in your bloodstream known as immunoglobulin E (IgE) antibodies."  

Here's what I recommend:  

1. Cure your lease violation - as well as a potential lawsuit against you for knowingly exposing someone else to a toxic building; the authorized person has no claim against the landlord.  She's not suppose to be there.

2. Your mold inspector should have advised you on next steps and his report should have been sent to your landlord and even code enforcement.  It's not tit for tat - if you have violated your lease, that doesn't give you a pass to stay.  Yes, the landlord can continue with evicting you for that reason.

3. Move.  Your landlord doesn't want you there if you're not going to honor the lease and you don't want to be there either.  With the mold exposure you can prove, why would you continue to stay?  That indicates that you are not concerned for your health.  You're not doing yourself any favors by continue to live in a building that you have found to be toxic to you.

You will have a better chance of getting your security deposit back and finding a new healthy place to live if you cure your lease violation and send a written request along with your inspection report and blood test findings to your landlord demanding early termination due to the evidence provided.

I've known landlords who have received tenant and/or attorney letters regarding mold in their rentals.  The tenants who prevailed with remedies that included getting their security deposit back as well as assistance with a new rental were the ones who reported the problem, documented it, and requested either a temporary place to stay while corrected or early termination of the lease.  Your landlord may not be taking you seriously if the mold claim is a response to the lease violation action.  Again, one doesn't cancel out the other.  And, even if the landlord was to remediate, you cannot live there during that time - nor can anyone else, authorized or not.

I hope you will take care of your health and your credit (an eviction is a FICO killer) and make arrangements with your landlord to move.  Best...

Your son hit the Parent Lottery big time!!!  Mom and Dad are Bad Axx Rock Stars!

Let's start with this:  "Finished basement project must incorporate an Egress window if any portion of the space will be used as a bedroom."  (End).  To expect someone in an emergency to have to climb a ladder and squeeze to safety is not an option.  It's simply not a legal rental as you've described it.  I would be concerned for your son - as well as the owner for putting himself in that position.  You have grounds to break the lease and the landlord will most likely put up a fight which can easily be remedied by giving him options:  break the lease without penalty or code enforcement can be asked to determine if the egress is acceptable.  He'll take a pass on code enforcement - especially since, "while there at the property," they'll take a look at the whole place.

It never seems urgent or important to act until something goes wrong.  Don't wait for that...it will be a great education for your son and the landlord.  Thanks for reminding us that "Dad knows best." 

When you buy a rental property, you buy the whole enchilada (tenants, problems, property) UNLESS you negotiate otherwise.  You would have to honor the leases if you accept the property as tenant occupied.  I prefer to acquire as "Vacant Possession" and have the current owner deal with his tenants and their departure whenever possible.  If you do accept it as tenant occupied, you should include in the purchase contract that all tenant applications, screenings, rent roll and payment histories are to be provided to you within 5 days of an executed contract.  If that information isn't acceptable, it's best to make it the owner's issue rather than buy his problems.

As far as rental income used in DTI, most lenders will only consider that income as evidenced by annual leases in place.

Hope this helps.  Best...

Everyone so far has referred you to your contract.  I would like to offer something else:  you don't have to accept the terms of somebody else's contract.  You're the client.  If their standard practice is to deposit into your account on the 15th for rent collected on the 1st - and that seems like a lot of float time to you, don't accept that condition.  I have a hard time with turning over a property to a PM in full.  While I value what they can offer to a landlord who doesn't want to self-manage, it's important that you decide what services you actually need for them to perform and those you don't.  Do take another look at your contract and have a discussion with your PM on what is working for you and what isn't.  It sounds like communication on their end isn't working.  Again, you're the client.  They need to make it work for you.  Best...

Eviction is definitely one route - and it most likely won't have to go that far.  Issue a Notice To Quit for Reason Other Than Non-Payment of Rent (or maybe your state has one that doesn't come with such a long dang title) and email a copy of it to the caseworker.  Housing is really good at "convincing" the tenant that losing housing is a lot better play than losing their assistance voucher.

But there are other options:  many churches and organizations will give grants to economically challenged folks for their utilities.  The Salvation Army, United Way, the utility company itself has assistance programs, and a handful of ministeries. Housing should have directed the tenant to these other resources.  And, shame on the tenant for running this bill up in the first place without finding a solution.  I would probably move in favor of eviction for that reason alone.

Before you evict, make sure that your municipality has the unpaid bill go with the tenant rather than stay with the property. Florida is one state that has the water bill remain the obligation of the bill holder but others lien the property.

I hate that you've been placed in this position and fingers crossed for a fast resolution.  Best...