All Forum Posts by: Aaron Smith

I am renovating a 4 unit right now in DC, and will be renovating another shortly. We've found that the buildings generally need all new electrical, plumbing, HVAC, roof, and all finishes (total gut). Everything is 80 year old wiring and galvanized steel plumbing. A complete renovation to condo quality is about 450-500k. Condo conversion legal fees are about 15k, architect/design fees 25k. Then there is also a 5% tax on the outsale of all condo units which have been vacant for less than a year, and realtor commission. In Trinidad at least, 2/1 condo units are going for 300-350k. So for 4, probably about 1.3 million. TOPA and vacancy cash for keys are another expense as well. Hope that helps! Good luck.

Hi BPers,

I'll be finishing renovations soon and will be renting out 3 rental units. I'll be self managing, and it would be nice to have one (or two or three) handy men available that I could call when any maintenance issues come up. Any referrals that anyone has to give would be much appreciated! please PM me.

Thanks!

Aaron S.

@Robert Brown Thanks, I will definitely read up on the laws. Actually mysmartmove is the tenant screening that BP partners with, so good to hear some good feedback about it.

Hi BPers,

Was wondering if anyone has had a good experience with a local portfolio lender. I think it might be nice to use a small bank that might be more flexible with terms, instead of the big ones. Looking for a lender for a rental property, not a flip. I appreciate any references, thanks!

Aaron Smith

@M Marie M.   Yes, I figured a lawyer would be the answer, so that may be the route to go. Just deciding whether to err on the side of caution and pay a lawyer to write a very landlord friendly lease, or to use the standard GCAAR residential lease that I found online. Does anyone have experience with how good this standard lease is?

Also, I was planning on using the BiggerPockets tenant screening service.

@Russell Brazil Thanks for your input. I'm just thinking that a well written lease could avoid some instances of issues ever going to court. If a specific situation is spelled out in the lease, maybe a tenant will more easily accept that, rather than take it to court.

Hi Everyone,

My brother @Joshua Smith and I will be finishing a renovation soon and looking to begin leasing up our four unit building. With Washington DC tenant laws as they are, we know it is very important to have a bulletproof lease that is written as much in favor of the landlord as possible. Where is a good place to procure this kind of lease? 

Thanks,

Aaron Smith

Keep in mind if you sell and do a 1031 exchange you'll pay closing costs and realtor fees when you sell. In my mind, I would hold on to the condo unless you see a substantially better opportunity. Also, you might consider a heloc, which would give you more flexibility. You don't have to pay interest on the money until you're ready to use it.

@Deirdre Brown Thanks for clearing that up. That is what I was thinking when I read it, but a little bit tricky wording. Thanks for confirming, I appreciate it.

Hi All,

I'm entertaining the idea of digging out the basement of my fourplex in DC, and maybe even adding another floor (pop up) at the same time. Potentially, this could turn the fourplex into an eight-plex. One thing that might have an effect on this is the affordable housing law in DC, which is called inclusionary zoning. On their website it states regarding rehabs that projects that will require to comply with IZ are:

rehabilitation projects that are expanding an existing building by 50 percent or more and adding10 or more units.

Just reading this, its unclear whether you have to have affordable units only if you expand a building by 50% or if you expand a building by 50% and in doing so add 10 or more units. It seems like the latter, which would be great.

Basically, I'm wondering if I would be required to make one of the new units affordable housing.

Thanks!

Aaron 

@Bill Exeter, @Dave Foster

That's what I figured. As always, thanks for the great information and advice. I will certainly document my intention to hold as well.