All Forum Posts by: Adam Juodis

 That is one thing I am not certain on though! The pictures and details I was given did not make clear if the unit has a kitchenette with an oven/stove. 

Say it does, where do we stand then?

@Chris Mason Can you explain why this is a good thing for me? Since I can do 30YF mortgage? What would happen if a certain someone would find out that there is a 'makeshift' 5th unit?

I was curious, could you rent out a garage that is attached to your rental property, to someone that isn't your tenant? I am interested in a 4-plex, and upon receiving the financial info, the owner was only able to rent out 1 of the garages to the tenants. If the tenants do not want to pay extra for the garage, could I potentially rent to renter next door that does not have enclosed parking? Any legalities that come with this? The garages do not have a entryway into the 4-plex.

I am looking at a 4-plex, and got some additional information that wasn't on the MLS from the selling agent today. It's a 3BR and (3)2BR 4-plex. The current owners split the 3BR unit into a 2BR and 1BR with separate tenants. Is this even legal? If so, does this have grounds to be classified as a commercial multifamily(5+ units) which could increase my taxes and other payments?

@Pavel Yurevich Financing a duplex with FHA is no issue at all, as long as the owner is an occupant. People have done FHA on SFRs with 'one entrance,' and rent the rooms to tenants/roommates.

Now if the one entrance grants access to the whole duplex, you might want to find a way to separate the units(Ex: add additional doors with locks for the upstairs and downstairs), unless you're looking for a roommate type of tenant.

@Jacob Blackett How do PM companies respond when you don't own the property or aren't even in contract? I know for insurance quoting purposes, the people working with me I could tell were taking it less seriously since i told them I don't own the place and haven't offered yet. For future reference, should I act like I'm the owner?

@Linda Weygant So if the county website doesn't list any tax reductions, is that a surefire way to know you're not going to get hit with a big tax increase? i want to cover my bases, a $2k increase in rent would cripple my returns haha!

I'm planning to do an FHA loan on a multi property that needs about $10k of work per unit(Not including contractor labor). The limit I can take out before getting a 203k adviser(More fees, implications) is $35k. My mortgage broker also told me taking out this rehab loan is also going to raise my interest rate around 0.25%.

What I am trying to do is cover the parts of the rehab that don't take so much labor, and purchase the materials and DIY for the other parts that are more labor intensive. Here is a brief list of the planned renovations:

Kitchen

-Granite Countertops

-Cabinets

-Tile back splash

-Kitchen Sink and faucet

-Kitchen lighting

-Stainless Steel appliances

Bathroom

-Vanity/sink/faucet

-Shower head

-Bathroom lighting

-Mirror

Common areas

-New front door

-New interior doors

-Blinds/Curtains

-Wooden Laminate/Vinyl

I have a decent amount of my own money I can use after the down-payment and closing fees. I'm thinking I can cover the flooring and installation, which would save a lot on labor. What other items on here that require more labor dollars could I possibly knock out myself? Again my goal is to have the 203k contractor Install the easier items so I can use up my $35k budget, but not pay too much for labor out of that sum.

Also, is there any way I can purchase the materials and get refunded from the 203k check, or does the 203k contractor have to purchase the materials? If not, can I tell the contractor I want this exact item that's listed a $X, and get charged close to the amount of $X(Of course maybe a bit more for the contractors time to attain the item).

Thank you!!!

I was talking to my dad, who is very skeptical about buying rental properties, and he warned me to watch out for the government raising the property tax after purchasing the property.

He told me that in his current home, in the year he bought the property, his taxes got raised by $1,700. I'm thinking somehow the prior owners were not paying the market rate, but he told me alot of people at his work have experienced this. I've never heard of this happening. I'm aware that municipalities/counties raise there taxes from time to time by a small %, but nothing of that margin.

How do I ensure that the tax rate I am going to pay is going to be the prior years+whatever % increase was issued by the municipality/county?

Trying to squeeze the numbers out on a 4-unit in a Class A area. Approximately how much % of rent would you estimate for property management?

Since this is in a Class A area and the rent is higher, is it fair to assume % off rent? The neighborhood next door could rent for $250 a door less, so would managers in a great area charge less than management for a area of lesser quality?

Also, the fact that it is a 4-unit, shouldn't there be a discount since all 4 doors are under the same roof (For convenience reasons)?