All Forum Posts by: Brian Zaug

@Yonah Weiss

Jim Teacher

So i'm in the process of evicting a tenant and after meeting with my lawyer, who is also a local judge, he informed me a few new laws NY just pasted.  Because of these laws, it's going to take me almost 2 months to get this guy out now.  They get 14 days after notice to pay or quit now.  Tenants even get another 2 weeks after the judge evicts.  Also, landlords are only allowed to raise rent up to 5% per year and can only accept a security deposit up to one months rent.  

Once I heard that evictions are going to take even longer than normal, 2 months long, my first thought was to increase my security deposits going forward to offer me a bit more protection.  Nope, can't do that.  

Also, I have been buying small multi's that are in bad condition with tenants paying below market rents.  I fix them up, then bring rents up to market which as you all know, helps when the appraisal so I can pull my money out and repeat.  If I can only increase 5% a year, it's harder to add value to these...

Any thoughts on this?  Why are tenants getting so much protection?    

Nathan G.

I couldn't agree more with your post.  I need to tighten up my process and not deviate.  I'm definitely going to steel some of your ideas.  Thanks for your post..

So I inherited a new tenant 4 months ago when I purchased this duplex.  He's been no problem at all for the past 4 months.  He texted me on June 1 saying that he changed jobs and that he might be late on rent this month.   I have a 5 day grace period in my lease and he texted me again on the 5th of June saying that he has no money and should be getting some money on the 24th.  

I told him that after the 8th of the month (3 days late), we issue the 3 day pay or quit notice and at that point, we must receive rent on the 3rd day or you have to move out asap or we will begin the eviction process.   I make it sound like i'm a big company but it's really just me running around like a fool.  I own and manage all my properties.  4 houses.  8 units.  Anyway, I called, emailed and texted him yesterday saying that this is the last day we can accept rent otherwise you'll either have to move out or we will file for  an eviction.  This tenant has good credit, a nice w2 job for the past 6 years and he won't even respond to my request of, "call me so we can figure out a plan other than using the courts/eviction".  I even left a message for him saying i'll reimburse him for some of his security deposit if we can agree upon a move out date......I'm really suprised by all this.  An eviction is going to hurt this guy in so many ways yet he won't respond to my help.....ugh.  Is he just trying to stay there as long as possible?  Does this sound common to any of you?  It's my first issue in 3 years luckily and i'm shocked by his lack of communication and responsibility for himself...

Hey Chris,  I invest in Poughkeepsie and also agree it's a pretty good market.  I'd like to hear and talk more about it so I'll see you guys at the brewery on the 30th.  Thanks for setting this up.

Venmo is great.  It's free.  You can send reminders that rents due and it keeps track of rent payments...All my tenants use it..I think they like it because it's one less time I come around inspecting what they are doing..lol

 Wow, that 3 fam on Albany st sold for $340?    People are paying ridiculous prices on that north west side.  I own a duplex on Albany st.  Considering selling....

It will trigger a reassessment.  I think they get notice from the title company that a house has changed owners.  From the towns point of view, this is a great way to increase the towns tax revenue.  

Last year, sister purchased a house from a flipper down here in duchess county.  The seller, who purchased the house at 110K said the taxes were 6200.  We checked with the town and he was correct, 6200 total taxes.  The seller (flipper) did a full gut renovation on this property and sold it to my sister for 297K.  My sister just received notice a few weeks ago that her total taxes are now 10,300.   She called the town and they told her that they re-assessed her house and that if she wanted to fight it, she'd have to go to the town on Tax Grievance day which is coming up in May I believe.   

On a smaller scale, this just happened to me as well.  I purchased a multi in duplex that the previous owner paid 80K for.  Taxes were 3320.  Sweet!  A year later, taxes went up to 4200.  Almost a 1K increase just because they reassessed the value of the house....ugh...Sucks

If I were you, I would certainly call your local town/tax assessor and have this conversation...

Originally posted by @Solomon Fulop:

@Brian Zaug  The assessment and the market value are two completely different things, no?  So if I purchase a property at that price, it doesn't mean that the property will assess for that value, although, it may assess higher it wouldn't necessarily assess at the purchase price, correct?  This house was recently assessed in 2017, but I am not 100% sure, or where to find out, if that would trigger a reassessment.

Solomon Fulop

These numbers are a bit tight for my liking but you are putting very little money into it and you'll live for free so for you, I guess this works for you...looking at it strictly as an investment, no me gusto..

3 concerns:

 1- Having to live there for the duration of the loan without being able to refi out..I'm not familiar with these loans so perhaps there are other ways to get out of this.  ex...pay it off with private money, refi and pay off private money.  That's going to cost you some dough and bump your interest rate up and put you in a possibly negative cashflow property..ouch

2- County has the house assessed at 83K.  In my area, also upstate NY, that means the tax rate is assessed at 83K.  When you purchase it at 315K, there is a really good chance that county will reassess it at the higher value and your taxes will go through the roof!  The roof, the roof, the roof is on fire!  You better hope the roof catches fire, because you'll have no cashflow to pay for it.  The knob and tube just might do that so leave it in place and get great insurance...

All kidding aside, the counties/towns assessors in NY are salivating light Saint Bernards at breakfast time when they see a house sell for way more than their current assessment...

My agent just emailed me this news. "Lawful source of income" is now a protected class. Just a heads up to NY investors. I could see a lot of discrimination lawsuits because if this. My local craigslist is loaded with apartments for rent that indicate we do not accept section 8 tenants.....