All Forum Posts by: Brandon Reiter

Maybe I'm overestimating! Taxes are only $1200 currently, so 20% isn't that much thankfully!

Good points, Pat L. and Rob K! Initially, I ruled out electrical service because of the cost; but, maybe it's worth the additional cost. The only way I'd do it is if each stall could be on it's own separate electric meter. I didn't include the cost of the partitions, either. I assume I will frame those with 2x4 walls. Although I don't know how much the taxes will increase, I am planning on a 20% increase. I wonder if the county will provide me with an estimate?

Thanks for your insight, Steve Babiak! I had not considered automatic garage door openers, but that's a great point to bring up. I'm planning on 10' x 10' doors. That won't allow for RV's with air conditioners mounted on top, but then again most of those are longer than 30' anyway. My thought was to try to avoid any electrical service if possible. It seems like the electricity bill could get out of hand in a hurry when the tenants aren't paying for it. Separate meters would also be an option, but I'm not sure the value would outweigh the additional cost.

I currently have a SFR on a corner commercial lot that allows for up to a 1500 SF garage. My thoughts are putting up a 48' x 30' garage (4 - 12' x 30' stalls). The garage can be built for approximately $21,000 (DIY VersaTube garage kit $12,000/concrete $6000/doors $3000). The current market supports between $125 and $175 per stall per month. Project can be completely financed. Would you do it?

Ciprian,
Thanks for your reply. I agree the property isn't a cash cow; however, I purchased the property with commercial development in mind. It's a corner commercial lot in the heart of town.

Any ideas?

The payments (mortgage, insurance, taxes) equal approximately the monthly rental income with a 10 year term.

Which loan would you pick on a single family investment property? The property cannot be financed in the secondary market since it's situated on a large commercial lot. Not knowing what the rates will do over the next 20 years is the big question. Any help is appreciated!!

Loan A - Current Loan on Property (in Year 2)
Years 1-5: 5.25%
Years 6-10: ???
Years 11-15: ???
Years 16-20: ???

Loan B - Promotion at Local Credit Union
Years 1-10: 5.25%

Ibrahim S - The deal did go thru last month with both tenants on an unofficial month-to-month rental agreement. It has actually worked out well for me on three units now.

I start out on day 1 by signing a month-to-month rental agreement with the current tenants at the current rent (mine have been under-priced which makes things slightly awkward). At the same time, I serve a notice that rent will go up from $275 to $600 and the security deposit will go from $0 to $600 on the 1st of the month (atleast 30 days in advance). From the 3 tenants that I've had to do this with, 2 of them moved out within a couple of months. It works well because carry-over tenants don't seem to respect rent the fact that I need $600 instead of $275 per month. Personally, I would rather agree to terms with a new tenant than force a higher rent on a previous landlord's tenant.

Brian Hoyt

I came across a post that you have worked with FRP in a rental bathroom. Can you provide me with any information that might be helpful such as type of adhesive, trowel or caulking gun for adhesive, plastic anchors or not, corner moldings or caulking only, etc? I am planning to remove the old plaster, remove the existing window, install green sheetrock, and cover with FRP. Sound like I'm going about it correctly?

Thanks in advance for your help!

Brandon