All Forum Posts by: Braden Hobbs

@Colleen F.

At first we won't have the capital to separate the meters, but I like the idea of converting to two electric and water meters, and then running electric heat in the basement as you and Josh mentioned. 

It sounds like it may be best to rent it as a single unit until we can separate the utilities, but does anyone else have suggestions or experience dealing with single metered utilities in a duplex? I'll definitely research the RUBS method you mentioned above.

Thanks for all the input!

@Joshua D. 

Wouldn't you need to have another furnace and ducting to that furnace to separate heat?

@Ashley Cann and @Nathan Mansur
How has your experience been with pricing your rentals as all-inclusive? Do you list them at average rental prices and then mention it'll be "x" more for utilities? And what are you charging for utility premium for upstairs compared to basement unit?

@Al Williamson

Thanks for the reply! In regards to option 1, how would you close off the HVAC to the basement unit?

Hello! I'm looking for advice on how you'd handle the following situation.

We are looking at a SFH that has been converted to an up/down duplex but doesn't have separate utilities. I feel like my options are to either pay the utilities and adjust rent accordingly, or have the tenants split the utilities 50/50. My issue with the latter is that the heat is controlled by the upstairs unit, so that doesn't seem fair to the lower tenant. The last option would be to just rent it as a single unit with a kitchen in the basement.

What have some of you other landlords done in this scenario?

@Brandon Turner

First, thanks for all the material you provide us, it is more than helpful! However, I can't wrap my head around some of the logic in the 7 years to 7 figures book, which is also similar to the path you describe in your newest "book on rental investing". 

How realistic is it that a bank is going to lend someone over $2 million on a property with an average income? I understand it would be commercial and based on the property, but seems like it would be quite hard to get that loan for a 30 year term as an average income earner.

Also, I wish Denver had $80k properties earning $800 a month for cashflow. Just gotta look harder:)

Thanks again!

Looking for some advice on setting up a partnership and financing deals. Will be setting up a partnership, probably as a LLC. Here is the situation, please chime in with how you've done things in your businesses.

Each partner is contributing money towards a down payment/closing costs. One partner is providing more cash than the other 60/40. The partner contributing less cash will be getting the loan in their name. Here are some of the concerns we're having.

1. If the loan is in one partner's name, can the LLC take ownership of the loan or only get put on the title?

2. Is it possible for the LLC to get a conventional financing then we wouldn't have to worry about #1?

3. Would there be any advantage to the partners doing the loan as co-applicants? 

Thanks!!

@Mike Cumbie

Great advice, thank you!

Looking at a deal with 2 units. One lease ends in summer, and the other ends in November. Our strategy with this property will be to use as college housing so we'd like both leases to end in the summer every year.

Do we have any options to end the current tenant's lease early in the summer?

@Andrew Davis

Thanks for the sites on estimating rents. I'd also throw out some of my sources.

-padmapper.com

-realtor.com (then search on rentals)

@Ryan Gillette @Jeff B.

Great idea on adding it as a contingency. Hadn't thought of that, since it's never been an issue. This agent is acting like I'm asking for the title to be signed over for free.