All Forum Posts by: Chase Farley

Hello BP, 

We recently purchased a triplex in a cold climate. We understood that the roof will need to be replaced this summer, and it is two-stories tall. The attic entrance was drywalled shut, and so inspection of the insulation would be difficult. An additional issue, is the gutters are mostly gone from the front of the house from neglect. 

We recently received a picture that there are large icicles extending from the roof, and I am trying to figure out the most feasible and preventative way to remove the icicles and ice underneath. So far, I have informed the tenants to be careful around the entrances while I work on having them removed. 

We just received a quote from a Snow Removal Landscaping Company, and they are stating it would cost $1,440 to "rake 8 feet of snow from the roof, and throw salt down to melt the ice." This seems like an expensive amount for something that I am sure will come back during the next snowfall. Would there be better companies to contact? 

Any advice is appreciated!

Thank you, 

Chase

@Tracy Streich

Thank you for the response Tracy!

It turns out that the sellers had another miscommunication, and it was the last month's rent portion that she paid. We received a security deposit for the tenant.

This put us in a much better situation.

Have a great day,

@Bjorn Ahlblad thank you!

We just received the official closing document from our lawyer, and it appears that yet again there was confusion from the seller. Apparently she used her last month's rent to pay for January, and not the deposit. This was a welcome surprise.

Hello BP,

We are closing on our first house today, a triplex in Vermont. One of the tenants was designated to leave in January, but due to her house not being ready she has to stay until it's completed, and they believe that it will be completed in February.

The issue is the previous owner allowed her to use her security deposit for the January rent. We have it in writing that there is no deposit being transferred for the unit. Our broker informed us that it is now our responsibility to work with the tenant, as the month to month lease is officially expired at the end of this month with no security deposit in place.

We have yet to contact the tenant, but we are wanting to reach out to her and the others today upon completion of the closing. We are ok with her staying until the house is completed, but we want to make sure that we receive rent for the months she occupies the units. This is a lower income tenant, so expecting another security deposit probably is an issue.

What next steps should be taken?

Thank you!

@Evan Dieffenbach One main factor that i haven't seen discussed. Where would your finances be after you invest the $15k? If the investment property suffers a CapEx issue early on, will you have the funds to repair the problem?

Personally, I was only a fan of the first few steps of Ramsey, and then I split once I felt my monthly student loan payments were manageable. For me, that was $200 a month, with only 4% loans remaining, because with $15k in savings I could comfortably continue payment in an emergency and I felt like I could beat that ROI.

With that being said, the largest payment I made on my student loans was thrift a company stock program that took 2 years to materialize.

Good luck!

@Harman N.

In normal times, you would just purchase the property and ask the sellers to inform the tenants to have it empty. If you already purchased the property then you provided them with a notice. Make sure you check the landlord laws of the area for a timeline.

Unfortunately, what you can run into due to the pandemic, is tenants that refuse to move out. The eviction moratorium will most likely be extended, and the state or city you are purchasing in could have a longer extension than national moratorium.

Having an extended eviction process will ruin your flip timeline, and cost you money.

Good luck!

@Nancy Bachety

Thank you Nancy!

Love your descriptive writing. That is what I was thinking if we decide to go the STR route, instead of a short 5 month lease before renovations.

I believe that if we do as you say, with lowering the cost and setting expectations, we can mitigate the bad reviews. We would just need to be more protective when vetting the guests at a lower rate.

Have a great day,

Chase

@Michael Baum

Thank you Michael!

We bought the property sight unseen, and the only photo to go off of is the Google maps photo the real estate agent used on the listing. We had an inspector take photos in greater detail, but they are zoomed in and on one pdf.

You answered a big part of my question though. The reviews carry over.

Hello!

My wife and I are finalizing on a triplex in a mountain Ski-town. The property is currently a C+ to B-, and the interior/exterior/common area is in need of cosmetic repairs.

The problem is that we will not be able to do a complete renovatation until the summer due to financial and timing issues. We will be able to have the available unit furnished, with a fresh coat of paint and other touch-ups, but the kitchen, bathroom, and deck would still be outdated.

I have two questions: 1) in terms of the reviews and quality, would this affect our future listing of the finished property; and 2) are there any other issues to know about for a property that is pre-renovation?

Thank you!!

Hold on... is there seriously no Discord channel for BP? I'm shocked!!