All Forum Posts by: Andrew S.

Hey community, Just curious if everyone replaces the double thermal pane assembly in a window if one of the panes has a relatively minor crack in it? The window I assume leaks in the winter. Crack is ~8" in the top corner of the upper window. C/ C+ class property. Is it ever acceptable to leave the window cracked for a new tenant? Or will this attract low class tenants who won't respect the property then? If I supply them with a window valance, you couldn't really see the crack. I understand that I'll eventually need to replace the window pane. Reason I'm considering my options is the window is a non-standard size so lead time may be an issue if it needs full replacement (also doesn't stay up). Thanks, Andrew

An inherited long term (6 years in the apartment, 1 month under my ownership) tenant has asked if I have a carpet cleaner.  I don't have a carpet cleaner so I told them that.  I could rent one and clean their carpet or pay a professional cleaning service.  They're on a month-month lease and "don't plan to move out anytime soon".  Is it worth me offering to pay for or split the cost of a rental carpet cleaner or professional cleaning surface? 

Thanks.

Hey BP,

With the recent lower interest rates dropping, I'm considering doing a refi on my house hack duplex.  I currently have a 30 yr @ 4.75% and am considering going to a 15 yr 3.25% with my local bank.  I'm considering asking my current mortgage bank for a lower interest rate (ideally without closing costs) or I'll be doing a refi with my local bank.  Anyone had success with this?  My local banker actually recommended this to avoid closing costs.

Thanks,

Andrew

@Chris Grenzig thanks for the obvious math answer.  Let the number do the decision making.

@Christopher Hunter My units are pretty comparable, they're in decent shape but nothing fancy.  I just closed on the property today and completed the comp rent analysis over the past month.  They haven't been updated in 10 years?  Based on the current resident's tenancy.  When a tenant moves out I will do minor updates - paint, carpet, minor repairs. 

Hey BP,

I have a 6 unit property that is currently below market rent by $100 - $150 and the previous owner paid for city water, sewer, and garbage.  The property is in a smaller town where water is a flat fee (not metered for the property - shower once per year or water your lawn everyday - same cost).  The city services are $75 per unit. 

Comparable rents in the area are $550 - $600 per unit with included city services.  Mine are $450 with included city services.

The 2 options I'm considering are:

1. Raise rents to $500 in 2 months, $550 after an additional 6 months

2. Keep rents at $450 and assign water bill to tenants

Most renters are long term tenants (1 yr, 6 yr, 6 yr, 9 yr) and have kept their units maintained well. I'd rather they pay their own utilities and deal with that themselves.   Anyone have experiences on which is most likely for the tenants to accept and continue renting?

Thanks!

I have a multi-family property ready to close on June 27th per the buy-sell.  The seller's agent is old school and wants to work at her pace and do things on her terms.  I'm ready to close a week early but she doesn't want to work faster to send the documents to the out of state sellers to close.  Anyone have ways to incentivize the sellers agent to close early?  I told my realtor that I'd give the seller's agent $100 or $200.

My reasons for wanting to close early - works better with my work schedule, I can do minor maintenance before the 4th of July week - want to leave the tenants alone during Holiday, pro-rated rent.

I think the current owners are older and don't care when we close.

Good morning,

I'm about to close on a 6 unit property with all long term tenants (> 1 year).  I was planning to change their locks as a level of security since the previous property manager may have extra copies of keys.  Another option is asking the tenants if they'd like their locks replaced and giving them the option to keep their current locks if they prefer.

When you inherit new tenants - do you always change their locks? Or is it more normal to let them keep their keys & current locks and change the locks when you get a new tenant?

Thanks!

House hacking is nice because you're living there, can fix it up over time and you probably have the time to do most or all of the work yourself.  I have a 1875 duplex I house hack with some older touches, but putting in new countertops, subway tile backsplash, new cabinet hinges & handles has added a nice touch.

Hey BP!

I have a question about insurance policy selection for my second deal.  It's a 6 unit commercial property with 3 buildings: 2 single family and 1 quadplex. I'm curious on what others have selected for their policies

-$2500 vs $5000 deductibles - $300 annual savings.  A $5000 deductible would mean I'm basically self-insured for minimal things other than a fire or major roof failure. 

-Liability - $300k vs $500k per building vs $300k + $1MM umbrella policy

My net worth including equity is ~$300k, $100k equity is in a duplex in my name (house hacking).

I've read to establish the liability around your net worth.

Would having a liability insurance on each building of $300k be very risky if that's my net worth?

-I'm debating purchasing the 6 unit under an LLC. I'll be self-managing, and I've read that an LLC will not remove the liabilitiy from me if it's self managed.

I'm leaning toward no LLC, $300k liability per building + $1MM an umbrella policy

My investments are in Montana - An investor friend of mine is being sued for a slip on the ice on a sidewalk.

For the record, I'm taking all opinions as a grain of salt - I understand not everyone is a lawyer or insurance agent.

Thanks,

Andrew