All Forum Posts by: Brian R.

Hello BP community, I am facing a new issue on my second property, which is located in Philly.

Last month the tenant's water bill was slightly over $200. For the six month's they have been there so far it has been between $55-75/mth. They told me their usage was not any different and I chose to believe them and immediately hired a plumber to come take a look in case there was a leak or other issue. It turns out the toilet overflow level had risen and was constantly dripping. We adjusted it, and this month's water bill is back to normal.

Now, my tenants are asking if I will be refunding some of the amount.

I'm torn. They've been nice tenants I'd be happy to have stay. But water is their responsibility and I paid almost $300 to hire the plumber.

Any thoughts would be appreciated. I'm considering offering to split the difference with them, they really are nice tenants and I would like them to stay, but I don't want to be a pushover or bend to every ask.

Thanks for whatever you care to offer or share from your own experiences!

Brian

@Michael McDermott , the place is in ogontz by La Salle University. 19138. Thanks for any recs.

Thank you for your feedback @John Knisely. I agree it can be a slippery slope, but because how new I am at this, I'm not sure if I'm more adjusting to make this next purchase work, or more realizing what I actually need/feel comfortable with and redrafting my planning accordingly as I get to know my own risk tolerance. Glad to chew on your food for thought. Much appreciated.

I find myself at a choice. To buy my third rental property or to pad my reserves.

I would say I have pretty health and conservative reserves. While not my target should I want to sit and start siphoning off my cashflow ['up and running maintenance mode'] I am thinking a third property would speed up the flow of my cashflow to fill my reserves even higher even quicker and help make my portfolio even more buoyant [3 properties with one vacant is 66% occupancy vs. 2 is 50/50 or 1 being 100/0].

Didn't know if people had a rule of thumb they follow or like [ie. after 75% of target reserve fund goals are met the next investment can be made.]

@Andrew Johnson, I definitely wasn't planning on picking up any ball and chain purchases that would require money on an on going basis, but excellent advise! I like and appreciate your thought process particularly how you included evaluating what your cashflow can handle.

@Tyler Weaver, thanks for taking into account the 'it depends' portion of this equation. The tickier part of the equation is my current profession supports me through parts of the year and not others. On top of this all, I want to avoid the 9-5 job all together... which might be a case for letting profits ride into the next investment to help me avoid a 9-5 in the first place. It feels like threading a needle but I might be able to do it!

@Chris K.  @Aaron M.@Steve Babiak @Randy Gillespie 

If I may piggyback on Aaron's question regarding security deposit in escrow, does anyone here have info on how last month's rent collected at lease signing should be held? Does that need to be in escrow too? Same one as Security Deposit? A separate one? Or not at all?

Any thoughts I'd appreciate

@Clarence Smith @Steve Babiak @Brandon Eleazer @Sean Treston @Max T.

I'm late to this thread but thought those of you local and active in Philly might have some insight on this.

I am dealing with my first rental in Philly right now and I wanted to ask regarding the step for holding security in Escrow; since I collected last month's rent as well, is that something that also is required in PA/Phila to go into escrow as well? The same as security deposit? Different? Or none at all?

I'd appreciate any insight you had and cared to offer.

@Thomas S. Makes great sense! I'm happy to make conservative safe choices. Well put too, "All you need is a proper paper trail but in the end, before a judge, all you will ever need to do is say yes or no that you have the LMR. Yes is a no brainer, no is much more difficult to argue." Thank you! Time to do some reading for PA/Phila

@Kurt Hines I'm embarrassed to say I hadn't thought to shop around for higher yield saving accounts! My dedicated reserves savings account with Wells Fargo is paying me $0.40 a month. Ally with their return would be closer to $10. Simply way to gather an extra ~$100 a year. THANK YOU! Also, I appreciate you understanding my not wanting to save everything for the future but wanting to still set myself up. I really appreciate your thoughts.