All Forum Posts by: Chris R.

@Sean Ryan,

Are you planning to owner occupy?

Hey Sean,

Welcome to BP, cousin. I just bought a triplex in Albany! I didn't know that you were interested in real estate. FYI, finding a 2%er is going to be hard in the A and B areas. I settled for 1.25% on a property that hasn't increased rents since 2008 and with adjustments to market rents hits 1.5%. I didn't want to deal with the vacancy and stress of a lower classed neighborhood and settled on a lower safer return. Ill PM you my cellphone and we can talk.

 Greg S,

I really do see what you are saying here and in reality  I see the black and white of this situation. You are clearly speaking from experience. Have you ever occupied one of your own rentals? Did your approach to managing your property on a personal level change? Seeing my tenants on a daily basis is a source of concern for me and my girlfriend.

@Jason Baron,

The accelerator approach sounds like a great idea and I think I will try that come time. It's true that he wouldnt be able to live the way he is living now out among other comp units. I will most certainly give a good tenant discount and present it as "this is what I should be getting  and this is what I'm charging you.* The other unit is a basement apartment also under market value though I'm not sure how long they've been tenants for (until I get the full rental history).

This is good perspective, @Greg S. One additional worry of mine is the owner occupied aspect of it. Raising rent could create an unfavorable environment. But again, with your philosophy, I'll just have to bite the bullet and find new tenants. 

@Mike Cumbie & @Greg S.

I see both sides here. Greg, I completely understand that business is about making money and accepting mediocre income is not part of being a profitable investment. At the same time, I'm jumping into this full steam ahead and training wheels during the "learning the ropes" phase sounds like a smart and safe approach to starting the right way the first time. I know I can be good at this and immediately cleaning house of 2 rental incomes while moving in myself is definitely fear inducing. That seems irrational?

@Judy P, Wow. I will look into this. Much appreciated 

Wow, I appreciate all of your responses and I think, in distilling these comments into a single point, keeping him is worth it with winter and the big move-in approaching. 

The potential for immediate repairs and the fact that in reality, the $1200 would be lost in vacancy anyways, makes this an easier choice. I don't want to rob him of his home and a good point was made @MikeCumby that he is already concerned with new ownership. I want to run this as a business and customer service always wins over greed.

I'll keep you updated

I just purchased a tri-plex and I'm closing 9/20. The building will be owner occupied though it is currently fully rented with 3 month to month tenants. Unit 3 is occupied by a 12 year long term tenant (high quality, consistent) who has essentially made it his home with his son.

I have a few predicaments here.

1. The 3 tenants are all paying under market rents. Unit 1 - $825, Unit 2 - $950, Unit 3 - $825 (Total $2,600/mo). I analyzed and purchased the property knowing median rent for my area and property type/quality pulls in $950-1100/mo. The biggest problem is telling a tenant of 12 years that I need to increase his rent by $200. One suggestion made is to raise by $100 and inform him that I should be raising $200..but his good standing has earned him the discount. I think I'd go for that.. but am I really robbing myself of $1200/year? 

2. 2nd issue is the owner occupy issue with 3/3 units occupied. I need to evict the 1st floor tenant so I can move in.  Am I going to be responsible for eviction or do I make that a responsibility (fees included) of the seller before closing.

What do you guys think. I have other questions but I'll post them as separate discussions to stay organized. Thank you!!

Yea, I'm actually very thankful for the resources here. I already have a lot of questions and what if's brewing. I'm a pretty active forum person in a lot of other communities so I look forward to absorbing knowledge here on BP. If anyone else is from the Albany area, reach out.