All Forum Posts by: Aaron Krawitz

@Brian Orr I like the plan for not increasing rent in winter/before the holidays. Out of curiosity, how did you valuate the MTM rent amount? Was it looking at listed/leased units in the area, 1%, or something else? I ask because my city varies quite a bit!

Congratulations! 

Out of curiosity, can you tell us more about the quadplex? Size/door$/how much the tenants are already paying? How long are the tenants leased through? Are you planning on raising rent after their contract is up?

Makes sense (on both counts). I appreciate the information.

@Christopher Phillips

Thanks for the response and information. In your personal experience with SFH's and the assumption they have their own meter, do you usually see landlords stating "utilities not included" and require the tenant to manage that aspect?

As a side question, assuming the tenant does pay for their own utilities, are there any legal ramifications when changing tenants in terms of when the properties utilities are shut off? I could see a tenant accidentally leaving the utilities on while a new tenant is moving in.

Good morning!

I'm new to REI and spending most of my free time reading and digesting information (currently reading @Brandon Turner's Real Estate Investment book).

I built a spreadsheet that lets me calculate cash on cash ROI so I can test sample homes to understand the impact of certain expenses, but one expense I'm struggling to understand are utilities. I have a few questions that I'm hoping the folks on BP can answer!

1. Does the landlord or tenant traditionally pay utilities? 
2. If the tenant pays utilities, is that amount rolled up into the rent or paid separately?
3. When listing a rental property on any MLS website, would the $$$/month include the utilities?
4. If this is a contract-by-contract basis, what method do you use to manage utilities?
5. Is there a good way to estimate total utility costs? (Electric, gas, water, sewage, etc)

If it helps, I'm located out of Houston Texas. Thanks!

@Anthony Wick

Thanks for the details!

I'm new to REI, but I was under the impression you had to live in the unit to qualify for an FHA 3.5% loan? I could understand a duplex where you live in one room, but i'm guessing you didn't do that for either the duplex or SFH?

 I've been looking at properties (50-80k) around Bellaire, Meyerland, etc. I have yet to invest in Houston -- what areas do you invest in or are currently looking at?

Outside your FHA 3.5% loan, for your other two duplex/SFH's how did you finance those purchases? Was it through the money saved on the first duplex or something else? (e.g. HELOC)