All Forum Posts by: Aathavan Raviraj

Hi all,

We bought our first multifamily last month and are living in an owner occupied triplex. One of our tenants is on a M/M lease and we want to introduce a new 12 month lease on this 3bed2ba apartment. One of the 3 previous tenants has moved out and now 2 remain. 

We don't have background/credit check info, bank statements, income proof etc. as the tenants were already there when we bought the place. 

Should we have the remaining tenants go through a tenant application screening to ensure they meet income requirements, and other factors? 

Could I ask the daughter (the tenant that moved out) to act as a guarantor if her parents don't meet income requirements? It's a delicate situation as the mother has been there a long time....

Thanks - Appreciate any insight/thoughts.

@John M Chludzinski Would you advise still getting the PSEG coverage for newer properties? My wife and I are going into a Triplex owner occupied situation where the utilities are only 3 years old. Probably can't ask the tenants to sign up for it and pay for it themselves as they already have leases, but I was weighing up the coverage vs some form of new home warranty. 

@Johann Jells No it's radiators and (excuse my ignorance) but the underground oil tank powers the heating and hot water. We've gone in with an offer above asking on the condition they install a new gas furnace and hot water tank. Thanks for the headsup on tankless, I asked my broker to follow up and he received similar advice to go with a large tank. 

@Johann Jells That's really good to hear, we currently have a conditional offer based on a Oil tank to new Gas unit conversion completed by the seller. My preference would be for a tankless water heater and a separate furnace but let's see what they respond with! (Also rolls the costs into the Mortgage so I don't take the hit up front!)

Thanks @Ray Reed ,I talked this through with my broker and he suggested 2 options, 

A) We offer over asking and ask the seller to install this prior to closing

B) We offer under asking and install this ourselves after the fact 

My preference is for A as it rolls the costs into the Mortgage and hassle is with the seller. Let me know if you've seen this scenario play out different ways?

Hi all,

Would really appreciate insight on how to manage a situation with an active underground oil tank (this is our first time purchase and looking to jump into the multi-family space).

- 3 Family home in NJ

- Underground Oil tank which is currently being used by the Owner and 1 other unit (other unit is vacant)

 - I'd like to make an offer on the condition the seller removes the oil tank to avoid the nightmare environmental stories I hear about

- How do I convert to Natural Gas and maintain hot water / heat for the existing tenant? Sounds like gas is far cheaper than oil as well!

Maybe I should offer over asking on the condition that the seller completes the full conversion to a new boiler system?

Any other advice, most appreciated!!

Thanks,

Ravi

@Allan Szlafrok Thanks Allan. The seller is willing to remove the tank so we put an offer in. Let's see, fingers crossed!

Hi all,

My first post here on BiggerPockets, thought I would get some advice on a potential property me and the fiance are looking to invest in and what to look out for? Appreciate any thoughts! Some quick facts:

- We live in Manhattan and looking to buy our first property (Currently pay about 2.5k a month rent, but it's time to leave and make the next jump)

- Looking at a property in Union City NJ (About 650k) 

- Monthly payment all in (Mortgage/Taxes,etc.) look to be around 4.2k (5% Down, HomePossible Loan) 

- 3 Family property in great condition (2 x 3bed1ba Units will be rented around $1700, while we plan to live in the basement unit). 

That leaves around $800 a month, but adding in utilities, vacancy, maintenance rates, etc. That can probably go as high as $1500 a month which is still far less than we pay today. I know there are probably better house hacking deals if we looked further out in Newark, Rutherford etc. but the other half needs to be closer to the city with her work.

1 big downside, there is currently an oil tank that provides the heat/hot water to the entire building, I'm trying to see if the seller is willing to remove prior to closing (I'm aware of the environmental disaster issue).

1) Assuming we need to stay this close to the city, does this look like a good first time deal? My thinking is, after 1 year we could move out and look to get another property in a similar location 

2) Oil tank issue? Any other smart ways of trying to handle the situation? 

Appreciate advice/thoughts.

Thanks!

Ravi