All Forum Posts by: Ursula B.

Is it a permitted and approved conversion to living space?  If so, I would say yes.  If not, I would say no.

Welcome @Account Closed !

For me, a prior eviction is an automatic disqualifier.  My application asks about prior evictions, and if they disclose it on the application I don't go any further.  They get a letter explaining to them that evictions are an automatic disqualifier and that no additional credit check or background check was performed.

The worst thing you can do is lie about the status of the unit. That will get you in serious trouble if they do decide to file a discrimination complaint.

Good luck.

It sounds like Rob is a long-distance landlord and Katy is assisting him.  She can't 'show' you the property or sign the lease with you if she is not licensed (at least that's the rule in NC).  Could be legitimate but it's too much money on the line to take a chance.  I'm a long-distance landlord and had a similar situation play out a few years ago, where I never actually met one of my former tenants.  But they only had $900 on the line and of course, I am legitimate.

The response from Rob would make me run away fast.  As a long-distance landlord, the last thing I want is a 'pain in the a**' tenant, so if I thought someone was being too high maintenance before the lease was even signed, I'd move on to the next applicant.  Sounds like you may be the only applicant and Rob is trying to lock you in with a not-so-nice attitude.

@Bart K. You mentioned a potential 'old pet pee spot'.  This makes me wonder if there's really not a smell that you may have been immune to since you lived there for 7 years.  I once had a prospective tenant that was allergic to cats. He walked through the front door of my unit and immediately knew that the former tenant had a cat.  I couldn't smell a thing.

I'm assuming they viewed the unit prior to move-in and knew what they were getting.  I'd give them two options:

1) Offer to let them out of the lease at the end of the month; OR

2) Offer to professionally clean and deodorize the carpet with the understanding that it will be the final remedy. This may cost a little more than just a surface cleaning but you need to show a good faith effort.  If they decide to move after that, they will be in breach of the lease agreement.

It is very possible that a pet stain has soiled through to the pad.  If that's the case, no amount of carpet cleaning will help.  You'll have to replace the carpet and the pad.

Good luck to you!

Ursula

@Brett C. Thanks! Still looking for one of those banks. It usually kills the deal when they find out I'm out of state. But I'm still looking!  Thanks again.

Just wanted to give everyone an update on the business loan I mentioned earlier in this thread.

To recap, I have four mortgages properties, so conventional financing is out. I applied for a business loan with Navy Federal CU, terms 75% LTV, 20 years, 5 year balloon, 5% interest rate, 1% origination and appraisal required. They were rolling two properties into one loan. I submitted my application on May 4.

Fast forward to 6 weeks ago, I got a call saying they needed to do an environmental study for one property, as the appraisal mentioned a prior gasoline spill near the subdivision. I reluctantly agreed to the $500 fee because I just wanted to get to closing already.  Two weeks ago the CU decided they could not finance the property because there was indeed a 50 gallon underground gasoline spill approximately .5 miles from my complex (I still can't get a straight answer of exactly when...there was an old gas station up the street YEARS ago, but not recently).  I was okay with this decision since the appraisal on this property came back low, and would have required me to pay down the existing loan $15K to refi.

Since the property is in another state, the title company sent over a notary to sign the docs. We signed on a Thursday at 7 pm, loan funded to our CU business savings account the very next day.

The CU required the property to be deeded to the LLC, and the loan is in the name of the LLC with a personal guaranty. No charge for the appraisal or environmental report on the property they didn't refi. And they gave us 80% LTV on the property they did refi when they originally said 75% LTV. The documentation required for the loan was very light. I'm still surprised at that.

Although it took 4 months to close, I got exactly what I wanted/needed in terms of a refi. Very happy.

Good luck to anyone pursuing creative or non-conventional financing options. It can be done.  Special  thanks to the BP community. Without your knowledge-share, I would have still been 'stuck' at 4 properties because of lack of financing. I now have 5 and one under contract.

@Brett C. 

Congrats! My goal was 3 buy and holds.  I've purchased one, and have one under contract.  The one under contract may end up being a flip.  Hoping for an easy 3rd purchase before the year is out.

Congrats @Pyrrha Rivers !

@Mike Sattem Just closed on a business loan for rental that was deeded to my personal name. The credit union actually had me deed it to my business, and the loan was made to my LLC. 5%, 20 year amortization, 5 year balloon, 80% LTV (after they told me the max was 75%). It was exactly what I was looking for. They're out there.