All Forum Posts by: Jennifer T.

I had a deal like this once.  I think it was through an Out-of-State Wholesaler.  The whole situation was a bit off because he was essentially acting like the seller's agent, except he wasn't an REA.  He was the only one I had contact with, until closing.

At any rate, I wrote up the PA with all the normal verbiage about pro-rated rent and security deposit being turned over to the buyer (me), at closing.  I had already been annoyed that the seller had foolishly only collected $300 for a SD, despite the rent being $1125.  He comes back to me that the seller said something like, "I knew she was going to do that!  That's too complicated.  I just want this simple."

Oh!  The seller wants it "simple"?  Not a problem!  We can keep it simple.  Including I don't have to pay her pro-rated property taxes at closing.  In Orleans parish, property taxes are "paid forward" so, normally, the buyer has to pay the seller the pro-rated amount of that at closing.  The guy paused for a second...I got the strong impression he had no idea what I was talking about...and said okay.  I added those clauses to the PA and everyone signed it.  Of course, I'd already done the math.  It was almost a wash, but I came out $57 ahead doing it "simpler".

Unless someone is self-employed and their tax returns are a part of their verifiable income, I wouldn't know if they file taxes.

Am I missing an important question to be asking?

In my eyes, retaliation might only come into play if you had given her a Notice to Vacate or something like that.

But serving a 14-Day Pay or Quit notice because the rent hasn't been paid?  That's a black and white fact!  Not retaliatory at all.

Good luck with everything.  I hope things go more smoothly from here for you.

I just bought two duplexes next to each other in June where I walked into the deal, knowing that was probably going to be the situation.  Like @Michael Craig mentioned, I saw it as an opportunity to get the properties for even cheaper (same seller).  However, I do live in an area where evictions are fairly quick and straightforward.

One of the tenants moved out before closing and that unit was delivered to me vacant.  Hooray!  The day after closing, I gave the other three units my introduction letter and a Notice to Vacate by the end of July (everyone was on a month-to-month).  The market rent was $1150-$1200, once they were fixed up a bit.  These tenants were paying $500/month!  Hence why I didn't even bother trying to keep them.  My letter even included that their security deposits could not be used for last month's rent, but I would refund them any pro-rated days they had paid for if they moved out before July 31st and would also return their security deposit promptly.

Two of the units had rent due on July 1st.  Neither one paid (shocker! not.) and I served a 5-Day Pay or Quit notice.  Eviction hearing was July 29th.  Neither showed up.  By the time the sheriff came the next day, they'd already vacated.  The third unit's rent was due on a weird date, July 22nd.  They didn't pay either, but I could see they were in the process of moving out and didn't worry about.

That's a wonderful success story! Congrats! I especially want to commend you for having a potential obstacle thrown at you, and thinking "outside the box", so you could still make it happen. It can be so easy to get caught in "I want to go to Y and have to take X road to get there". But some of my best decisions in my REI journey have come from looking for that "Z side street" to get to Y ;).

Haha!  The multitude of break-up messages, especially the one on the mirror with lipstick would have had me cracking up.  At least they left better and more valuable stuff than my people, lol.

Speaking of holidays.  The tenants I was referring to also chose a big, local holiday to leave.  Mardi Gras Day.  They had moved here from Wyoming 18 months earlier because the husband had been working in the oil and gas industry, got laid off, but also got a huge severance package.  Some of it used as a down payment for TWO fully loaded $50K SUVs.  They decided to make a fresh start, were drawn to New Orleans, and moved here.  The irony that they moved out and back to Wyoming on the most famous day of the year for NOLA was not lost on my husband and I.

It would certainly have been a much better fresh start if they'd bothered finding work, other than part-time bartending.  Both their SUVs got repo'ed at various points in time.  They somehow scraped up the rent every month, for the 1 1/2 years they lived in our unit.  Never more than a few days late.  Until the month came when they couldn't.  They actually had their buddy drive down, all the way from WY, to take them back.  I actually felt bad for their friend, lol!  Here he is in NOLA on Mardi Gras day.  But didn't do anything except battle a bunch of traffic to turn right back around and head back home again. 

The only legal reason I've ever heard for a tenant to be able to break a lease with no consequences is for a military deployment.  I suppose it's possible there could be local laws that allow for other reasons, but I wouldn't think that's usually the case.

Barring any local law, I'd treat her like any other tenant who wants to break their lease.  If there aren't terms in the lease for breaking it, then she is responsible for the rent until you are able to get another tenant.  Though that is easier said than done because many people won't keep paying rent on a place they are no longer living in.  You also have to perform due diligence for trying to find another tenant.

Or you all can come to an agreement (put it in writing) that she pays Dec. rent (whether she lives there or not), allows showings, and you also keep the security deposit.  And you will release her with no further repercussions.  It's a little bit of a gamble for both of you, but I think a fair one.  You might rent it out to someone else in Dec. and come out ahead.  Or it might take you longer and she comes out ahead.  But, either way, it puts a "period" on things so that you can both go on with your respective lives.   

My personal home is in New Orleans.  It is a classic shotgun double style and was built in 1911.  We replaced the siding a few years ago and found that the four corners of the house were not construction lumber.  They were Cypress logs!  We thought that was awesome, lol.  We pictured someone 100+ years ago, going just outside the city to the swamplands and cutting down a Cypress tree to make logs for the corners of the house.  Plus a benefit to cypress wood is termites don't like it and won't eat it.

I'm sure someone in the banking industry can give a better answer than myself, but this might be an across the board problem for you with any lender that goes by the Fannie Mae/Freddie Mac guidelines.  Which is typically true for just about all your "brick and mortar" banks.

Hard money and private lenders don't necessarily have to follow those same requirements, but you will typically have higher interest rates and possibly higher fees.

Here's another thought. I don't know what kind of LTV you were looking at or need, but maybe you can play with the numbers and do a lower LTV...which will also be a lower payment...to get your DTI where it needs to be.

Also, is it possible to pay off some debt?  It's shocking how a little bit goes a long way.  I had that happen when I was buying my first home.  I had just started the process and just gotten pre-qualified.  And then my car was totaled in an accident.  I was freaking out about how getting another car loan might affect being able to buy a home.  My loan officer reassured me that, as long as my new monthly payment was the same or lower than my previous one, it was fine.  My new car payment ended up being $100/month lower.  Just that 100 bucks less a month in debt actually raised my pre-qualification by $30K!  

Although I provide my tenants with washers/dryers, because of abuse problems in the past, I now tell my tenants...both verbally and in the lease...that I'm supplying the washer and dryer for their convenience.  But, if they break, I won't repair or replace them.  I also had a tv that got left behind by one tenant and the next tenant wanted it.  I said, "Sure!"  And with the same warning that I was not providing the tv.  But they could have it for as long as it worked.

At least for me, refrigerators and stoves are different.  Those I will replace if they break.  Primarily because, at least for my area, those are expected to be provided by the LL.  Plus, when they break, that's not usually the tenant's fault.