All Forum Posts by: Bob Mazza

Thanks for all of the tips!

@Todd Hays Thanks for the tip, I think I will add a clause to my leases regarding inspections and do think its important to give a heads up.

@Joe Splitrock I think I will hire a cleaning service in the future, especially when situations like this arise. 

@David Dachtera I think adding a range will help and will likely look into that one day.

@Account Closed I think having the extra day in my back pocket will help for that exact thing. If they argue with me keeping half I will put that on them, I read that if someone stays late they can be charged for the entire month! Not trying to screw anyone but I do think I am being reasonable and they may fight it, who knows.

Appreciate the insight on this one, I am sending out half of their deposit now.

Thank you everyone for your responses @Gino Barbaro @Stone Teran @Robert Melcher @Michael Noto @Bill Schrimpf 

The big call out here is being more specific in my leases - going forward I will be adding a few additional items and hope that will alleviate some stress. The tenants think they should get their full deposit back - curious - does the fact they stayed into another month make any difference? Normally I would not be a stickler but figure I can use that as back up ammo if it is worth anything. I have heard if a tenant stays late they are responsible for the next months rent...again, usually I would say nothing but given the circumstance it is nice to know.

Appreciate all the insight BP you are all the best!!!

Thank you all for your responses. It seems like the major issue here, the grease, is sitting on some sort of grey area. I like to think of myself as reasonable and have cleaned up some pretty gross situations in the past - this one took the cake.

I can be tough and hold onto this but if I am being tough I figure I need some backup. They were supposed to be out on the 15th of the month but were not out until the night of the 16th. The excessive trash they left behind - normally a cost I eat with tenants - led to a $65 charge on top of usual weekly trash bill. 

@Dawn Anastasi @Chris Eaker my personal feelings are with you. How can someone live this way, how is it normal wear and tear! 

@Account Closed appreciate your insight on everything. 

My gut tells me to send them half of their deposit but I am on the fence. If any of the information above changes anything please let me know.

Thanks BP

Connecticut - Fairfield 

Looking to help from the BP community in figuring out how much of a security deposit I should hold back. I had tenants move out of a small studio apartment I have about 3 weeks ago. When I went to get the keys the apartment was left in terrible condition and I advised the tenants that they need to clean if they want their deposit. They did but not to my standards.

Here is how things looked...

• The shower may not have been cleaned for the year and a half they lived there. They tried to clean after I asked them but the new glass shower doors were covered in soap scum and crud between the doors. I ended up cleaning that. 
• I found a leak in the ceiling that appears to have been there for a while but never reported. Opened the ceiling fixed the leak and had to repair the ceiling - under the ceiling where the water collected the floor finish is clearly gone and I believe it is from the leak
• The apartment was generally dirty everywhere requiring a vacuum and mopping, I ended up painting the place.
• THE WORST PART WAS THE GREASE!! Not only was the oven covered in a thick layer of grease, the countertops were THICK with it, the window in the kitchen was covered, the microwave, refrigerator, sink, cabinets, floor, EVERYTHING!!
• Cleaning grease is a lot harder than I thought, special chemicals still require multiple cleanings...Moving the fridge was an eye opener as the floor was filthy with food grease and mouse droppings they chose not to clean. Under the sink was disgusting as well but not a grease problem.
• Furthermore, this is a tenant who complained about mice. When I saw that literally everything was covered in cooking grease I now believe the problem was caused by them. I paid an exterminator 500 bucks to come out and really I believe their lack of cleanliness caused this.

I had the apartment repainted, cleaned everything replaced a microwave and it took longer than any apartment I have ever had to turnover. Their security deposit was $950 bucks - they really did not take care of the apartment but lived there for just under a year and a half.

I have never held back anyones security deposit but do not feel I can give theirs back, they really did not take care of the place - Can you all help me figure this situation out. I want to give these folks an answer and would love to hear your thoughts. 

I am excited to be on the market for a multi family in Bridgeport or New Haven CT and am waiting for the right deal - total gut - full rehab required. I can buy the property all cash but would need funds for rehab - what are my options? I would like to avoid high rates with private money but feel it may be the best option for things. Looking at 3 units for $60k and rehab budgets at or below $100k Thoughts?

@Daniel Raposo@Bryan O.@Zach KiddThanks for the responses.

With the sale of my sfh home my goal is to be able to purchase a multi family and a sfh. I currently own a 3 unit and want to add to my portfolio.

Buying the multi family home would allow me to house hack, low down payment but have to live in it for a year. Then I can leave and transition into my new home after land is located and purchased and the build is complete. Since I would not be renting there is added flexibility should timelines become difficult.

The idea of buying land to build a home is because we would have to live in the multi for a year anyway so we would not be in a rush, also I would anticipate almost instant equity...I dont know much about construction loans. Heard if you own the land and use it as collateral you can often put no additional funds into the project and turn it to a conventional loan once complete. 

There is a good inventory of homes but a new home seems like a great option to live in and sell somewhat short term 2-5 years. Not a dream home scenario but seems like the least expensive way to get the quality home in the neighborhoods we like.

The 25/75 split is purely due to the price of land. I would put more towards the investment but need to acquire the land...that said I still need to fully understand construction loans. Do I need to buy land outright to obtain a construction loan?

In the end I see this move bringing me from 3 to 6 units, no time spent paying rent, and a brand new home - that I would hope to sell short term and do the same thing. My long term goal is to have 20+ units, the wife wants to continue living in SFH's otherwise I would buy more multi's!

I am thinking of selling my home and may be looking at $400K in equity when it is all said and done. 

I am hoping to purchase a multi family - owner occupied with about 25% of proceeds - $100K for an estimated 20% downpayment. With the $300K leftover I would search for a piece of land to buy outright then look to get a construction loan to build a new home. 

Does anyone see any trouble with this scenario? Is there anything I am not thinking of? I would live in the multi for a full year at least so think I should be fine getting one with a relatively lower down payment and then if I own the land hoping that the construction loan won't be too difficult to obtain. I am in fairfield county connecticut.

Would appreciate any insight you all can share, I don't want to get down the line and figure out there is a problem.

Thanks for the input everyone - looks like 20% is the only option. If the numbers work and I can escape PMI I want to make the lowest down payment possible, I fee

If anyone thinks of any other ways to get in with a lower down payment let me know, maybe some lenders out there that may have some creative financing options for multi family investment properties in Fairfield County, Connecticut.

I have started to shop around for a new investment property to add to the portfolio but wanted to be sure that I had a clear understanding of what my down payment would need to be. Below is an outline of what we have outstanding:

3 family - Loan in my wife's name only - house hacked

SFH - Loan in my name only - Owner occupied and plan to keep it that way

Now for our next loan on an investment property I am not sure if we will use both of our profiles to purchase but we are open to just figuring out what works best. I have seen down payments ranging from 15-25% to get conventional financing on an investment property, really looking to put as little down as possible. Can anyone offer any insight, this would be a pure investment property, 3 family. Any insight you can offer would be great. We are targeting properties in Fairfield Connecticut and have a few we are interested in if we can obtain financing, 10% down would be even better - trying to stay away from Hard money.

Will do my best @Jacqueline Carrington thanks for looping me in!