All Forum Posts by: Brian Warren

I have 2 almost identical triplex apartment buildings.

Both have 2 very large framed / screened in from porches. Estimate 40’ x 14’

It would be very easy to turn half of each one of them into a 3rd bedroom and still maintain an appropriate sized screened in porch on the other half.

I have a guy that is very capable of doing the work. This would increase the rent of said units by approximately $200-$250 each

My question is

1) do I need permits for interior work like that? (Most likely)

2) how likely are they to approve it? WhT would be my obstacles?

3) if I did the work without permits will this come back to bite me when I try and resell the properties?

@Isidro Martinez’

If al goes exactly like it should about 2 weeks. But there are endless curveballs that will allow a tenant to squat a long time

I have had a few take about 3 weeks but I have ha a few that drug out 3 months..

I always send late rent notice and by the 5th they get the certificied letter 3day to leave.. that won’t ever do it though so if that doesn’t scare them into paying then it’s off to the court house to file, then off to sheriffs office to setup eviction date as long as all judges pass and tenant or state appointed lawyer does not fight it.

@Isidro Martine

Absolutely there are lots of houses that meet that criteria here. On paper you will see what looks like some home runs. The majority of Housing in this town was built in early 1900s so the age of the houses is very old but the rent to purchase ratio is great.

@Jarrod Kohl

I would love some more info on these

Maybe need to start a new thread covering the pros and cons of the software that is available

I want to keep it simple but find the best one out there

@Christopher Reeder

How can you tell which tenant deposited rent when they use deposit slips? I’m worried if I have 4 tenants that all pay same rent that it could get confusing?

This is only for the ones that don’t do online payments.

@Brent Paul

Very simple great advice!

Thank you.

I’m not looking for immediate cash flow as much as I want to gain more properties to set up for cash flow later

@Mike Giallanza

These really are a couple of golden geese.

The area is a perfect in between a very nice side of town and far enough away from the bad. They are across from the big public park in town and have just been let go for too long.

Cash flow was very good right from the get go but the deferred maintenance was building up.

Both needed roof, gutters lots of trees cut down, paint or siding and windows are very old. I plan on putting another 25-30k in to them in the spring. At that point my rental income will be pushing $5500. And I’ll be all in at around $225,000-$250,000.

Mortgage is only $900 after insurance, taxes, and I pay water I’m only in for about $1900

So that’s my thing is it is a cash cow but I have also dumped a lot of cash into it.

I would like to pull out some of that cash and roll it into another deal. I’m too far away from retirement and I want to continue to grow my portfolio at a fast rate. (4 properties a year) I would like to break into larger complexes but that is more in my 2-3 year plan .

Still relatively new to this part of the game. I love getting a advise from people that have done this in the past and have the real world experience. I have read so many books and pod casts I jumped in so I can learn this through experience.

Thank you for all your help

@Will Barnard

Absolutely not wanting to get out all together.

I own 2 vacation properties, one 2 single family homes and these 2 three plexus.

But I will be moving next year and not sure that I want to manage from out of state or not. I am working towards using cozy or something like it.

I have a solid handyman that I can continue to use as well as a strong network of contractors and plumbers electricians etc, I have owned a business in this town for last 8 years but am moving early 2020.

If I sold them it would be to 1031 it into another project. I’m torn because these cash flow very well and the work I have done and have planned would really lock these up to be very low maintenance for the next 10-15 years.

I do need more cash on hand to continue purchasing more properties is the thing. Basically I was planning on doing a beginners BRRR on these but I just didn't buy with cash but have done all the rehab out of pocket and then was going to refinance once I got them all cleaned up.

@Theresa Harris

I inherited the bad.

I have replaced 3 of the six apts.

Rehabbed each one when tenant left and rented for 30% more to better quality tenant

I’m not saying my screening is top notch but much better than the previous owner.

The remaining 3 I have one bad tenant 1 great tenant and one who the rent is 40% below value, she has been there for 15 years though and the apt will need some hard rehab once she moved out. Lease is up in March..

I am not going to renew the lease for the bad tenant. They need to go.

Last owner resigned all 6 leases right before I signed all paperwork when I purchased so it’s taking a year to work these people out

Last March I purchased 2 triplexes for a great price.

I know there was deferred maintenance, roof, gutters, paint, and some cement and landscape issues..

But the deal was too good to pass up. It cash flows well right from the jump..

So this summer and fall I replaced both roofs, installed new commercial gutters, cleaned up trees in yard and just cleaned up yard I. General.

Installed some new outside lighting etc.

I ran out of time to replace the windows and repaint the exterior.

Now that was all expected

The part that caught me a little off guard is I had adopted 2 horrible tenants and one great on that broke his lease 2 months in..

So two apts stopped paying rent and did not take good care of the Apts causing a total gut of 2 of them and a few thousand in repairs.

My original plan was buy and. Hold. And I believe the way I am doing the repairs and what I am doing will last for a very very long time.

But I’m getting down to a couple options

1. Leave mortgage where it is and pocket 2-3k a month. Depending on occupancy and I also want to build out a 3rd bedroom into 2 of the

And that would bring profit up to 3-4K

That being said I will be out of pocket a large chunk of money and it will tie me up a little and harder to make next purchase.

2 was original plan was fix up and refinance and move on.

Problem was this took longer than expected and also the though of pulling in 2k extra a month is a nice thought. But I do really want to continue to grow my portfolio

3 I think I could sell in spring for a hearty profit due to all of my repairs and increases In rents and get free and clear and get out

🤷🏽‍♂️

Some advice for a newer investor please