All Forum Posts by: Amy Engelhard

One more question I thought of- is it common to require tenants in NEPA to pay for renter's insurance?

thanks @Bjorn Ahlblad good advice!

Thanks @Kevin Sobilo @Adam Guiffrida @Aleksey F. for your thoughts.

The water bill is outrageous.  I've been getting mixed opinions on this.  The water portion is actually ~$300, the sewer is $150.  Most people who I have talked to think this may be closer to "normal".  Also there are 6  (yes 6!!) adults living in unit 1.  Also i just spent a few thousand $$ fixing several leaks (all small - nothing major) all up the column of pipes leading to the bathrooms.  he also replaced all the valves in the basement.  Next month I should be able to tell if this had an impact.

likely its worth installing low flow/ water efficient shower/toilet/ and even buying a new HE washer for Unit 1

I like the idea of installing coin laundry in the basement.  I will probably look into that as the units turn over..

Thanks Adam!  

I think maybe I explained washer / dryer situation poorly.  Each unit has a washer and dryer.. so i have 3 washers and 3 driers that are all 20 years old and currently my responsibility to fix.  There is no common area to put in a shared laundry area.  There is a basement - unfinished - primitive at best, it wouldn't work. 

I don't think you would put a coin operated in each unit?

Fellow NEPA Investors,  

I currently have a 3 - unit multi family in Dunmore, PA.  I have owned it since June 2018 and all of my leases are ending March 31st of this year.  My leases / tenants were inherited...

some info about the property:

each unit is 3bed/1bath ~1200sq ft each

basically no updates have been made since the 50's?

Tenants pay Electricity

Owner (me) pays: Gas (heat ~$290/month avg), Water - ~$420/month, landscaping/snow removal ($40-$80/month)

Question 1:  What do you think is a fair rent increase or fair rent for the area.  Keeping in mind that I would much rather them stay then have to turn over a unit.

Tenants currently pay: 

Apt 1: $575/month +$25 pet fee + $100 for use of the 2-car garage.  Tenant has been there 12+ years

Apt 2: $625/month.  Tenant has been there 1 year

Apt 3: $600/month.  Tenant has been there 9+ years

Question 2: Should I include the washer and dryer?

The washer & dryer was provided by the original owner (for all 3 units!).  It's in their current lease that the owner (me) is responsible for all repairs.  They are at LEAST 20 years old and are all about to die.  From what I've seen in the area Washer/drier are not typically included.  I was thinking to not include these as an owner responsibility moving forward..  Thoughts appreciated on this.

Question 3: Anything you would include in the lease beyond the standard lease agreement?

I've downloaded the bigger pockets lease agreement for Pennsylvania.  If anyone has used this, do you think there is anything to add? 

Thanks!

I have a loosely defined "ground-team".  I am using an agent to help me coordinate maintenance/contractors and have found a reliable maintenance person whom I trust.  Also my parents live there and have been to the property.  I'm not totally in this alone from 3000 miles away!  That being said, I'm way more involved than I would be if I just hired a property management company.  

Definitely would like to hire a property management company for the long-run but I haven't found a good one yet.

I own a rental property in a town 3,000+ miles from where I live.  I have never seen it in person and obviously have not met the tenants in person.  In a few weeks I will be in town visiting family.  Should I go introduce myself to the tenants?  

I have been mostly self-managing so I have talked to them several times to schedule maintenance and contractors and they are very nice.  

Here's my thought:

I don't want to meet them.  I think can make more rational decisions, ie. "stick to the lease agreement" type decisions, business decisions if I don't.  Meaning it would be much easier to evict a tenant for not paying rent if I didn't meet her adorable 5yr old boy (as an example)..

Curious to hear other's opinions on this!  

I wish I could, but I won't be in town until mid-october!  Live stream it! :)

Do you have a date/location for this event?   

Edit: oops! now i see it all the way at the top

@Christopher Madden here you go!! :

The property is in Dunmore. Purchased off the MLS for $125,500.

3 units stacked on top of each other with identical floor plans: 3 bed / 1 bath 1300 sq ft each.  

Built ~1930

Current rents are $575 +$100 (garage) , $625, & $625.  ( this is very LOW )   But I'm stuck with them until March 2019.

Taxes ~$2200 / yr 

Insurance: $98 / mo

Tenants pay Electric, Owner pays all others - gas (steam) heat, water, sewer, landscaping, snow removal

I can easily raise these to 800+ in their current condition.  Even higher if I want to sink some capital into some kitchen upgrades.

I'll be using property management and they'll take 10% per month + 100% of the first month for getting a new tenant.  This seems to be pretty standard for the area.

The bad:  The home inspection found evidence of knob & tube wiring, and there is basically 1 outlet per room with tenants running power strips and extension cords all over the place.  It's not good.  I got a $14,000 bid to fix it all and add some outlets which was handy in negotiating a lower price with the seller.   The windows are all the originals, so they will need to be replaced eventually.  I assume my heat bills in the winter will be outrageous until they are replaced.

I don't expect a profit in the first 2 years based on the amount of cap expenses  (electrical & windows being the biggest).  Once I can get the property stabilized and raise rents to market rate my calculations put me at ~$600+ /month in cash flow accounting for vacancy, cap ex, repairs, ect.

ALL THAT BEING SAID... We did NOT close yesterday!  There was a mistake in the write up of the loan docs.. the loan needs to go back to underwriting...  OMG!  So we are at about 50 days under contract and I don't have an update from the bank yet on when they'll be ready.  

If you want any more details feel free to ask!