All Forum Posts by: Collin Baumann

Thank you so much for the responses. We did just that. The tenant is saying the friend is autistic and has a service dog. Which is reasonable if it’s true. The dog is a boxer. How do I go about verifying this? Can I require the tenants friend to have to provide me the ESA certificate? They are saying the dog doesn’t stay over but I’ve had other tenants in the duplex complain about it barking until 2 a.m.?

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Hey all, so we have had extremely good luck with tenants to this point but we just put in a tenant who within the first week has broken our lease in a number of different waysz

1. We have had reports of them vaping on the property which violates our lease

2. We have a no pet policy and the tenant has a friend that is constantly coming over and bringing there dog which is a boxer

3. They are extremely loud and we have had noise complaints from the other tenants in the duplex.

When we signed the lease I went line by line through the lease and the tenant is informed of these things. What’s the best way to address these things?

Do I send an email? Put a notice on the door? Talk to them in person? How do I go about addressing these?

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Originally posted by @Justin Hammond:

@Collin Baumann, Congrats on the contract! My very first rental was very similar to this - built in the 60's with popcorn and lead-based paint. I literally didn't do a single thing about it, and I'm glad I didn't overthink it. I still own the property and it cashflows like crazy. Just my 2 :)

Thanks so much! The deeper in I get to this the more I am leaning towards exactly what you just explained. Was yours a legal duplex or just an accessory apartment that you now rent out both units in do you know? I think I am overthinking a lot which is expected with it being my first. As long as I learn from the experience I am good.

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Originally posted by @Blair Poelman:

I wouldn't expect any substantial discount based on the house having asbestos - especially in this market. Even a semi-smart seller is going to reject any kind of discount simply based on the house having asbestos. There's enough demand right now that the seller would rather have you cancel and the next person will come along this weekend and probably not care about asbestos.

It's safe to assume that if a house was built between the 1930's and the 70's some kind of asbestos-containing product was used in the construction.

Also keep in mind that if you get it tested and there is asbestos (i.e. you know about), you must disclose that fact when you sell it down the road. If the asbestos-containing product or surface is in good shape, the mere existence is not nearly as big of an issue as most think it is. If the surface is degrading and chipping away, or is starting to flake and get dusty then it is a problem.

Lead paint is inevitable - it's not a big deal, there is a proper way to deal with it and it's relatively simple.

Thanks for your feedback Blair. Do you by chance know what the process is on the lead paint? Or do you know any good contractors in the area as well?

I appreciate all your help!

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Originally posted by @Ryan E.:

@Collin Baumann I would recommend you get the whole house tested for asbestos...anywhere where it would likely be and not just the popcorn ceiling area (you probably were planning this anyway). If it has any asbestos then I would recommend going back to the seller and asking for a discount on the price, money back at close, or for them to fix it if you trust them to do that. This is quite common during due diligence. I've sold a few houses and on every single one the buyers came back wanting me to fix this or that or give them some kind of credit at close.

The way I understand renovations in a house, you will need to get a permit for the work you want done. So, you'd need to pull a permit from the city. You can probably call the city and talk to the buildings department and ask them exactly what you would need to do. Just a word of caution though...once you get a permit city inspectors may need to come inspect the work and once they are in your house they may flag other things...especially when you open up a wall. I don't know exactly how this works in Salt Lake County but every city is different so maybe ask around for some people who have dealt with city inspectors in the city where you are buying. You can even call the city and talk to an inspector and ask him/her some "hypothetical" questions about a house you may be purchasing. You may want to way removing that wall with the potential for an inspector to come in and tell you that you are going to have to update the electrical wiring in the house or redo all the plumbing, etc. But that is what your due diligence period is for so good work! Don't let any of that scare you from continuing with your purchase...I'm just saying that you may want to look into it further.

Also, not sure what your plans are or what your family situation is but I'd recommend living in the smaller unit if I was you. I am currently house hacking a house I purchased before I ever knew what BiggerPockets was. I really wish I would have lived in the bottom unit from the beginning...this would have allowed me to have my entire mortgage covered plus a little. Another thing you can look into is AirBnB-ing out one of the units for greater potential cash flow. Anyway, I've rambled enough but good luck!

Thanks for your input and feedback. We definitely plan on living in the basement and renting out the top for that purpose of generating more cash. Air BnB unfortunately isn’t an option the city doesn’t allow it. We are in touch with the city and we would for sure get permits to do the work we do on the home.

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Also any other advice someone has while in the due diligence period would be grately appreciated?

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Hey all,

So my wife and I are super excited. We are under contract on a Single Family Home with a legal accessory apartment. We are going to take advantage of this and house hack it. We are currently in our due diligence period and I have two things I want to narrow down on. The downstairs has a small section of popcorn ceiling. I want to remove it and I know their are red flags about asbestos? I am planning on getting it tested for asbestos. If it doesn’t have asbestos I will do all the work myself in removing it and redoing the ceiling. If it does however I am not sure what to do? Has anyone ever had that?

Also the home was built before 1978 which means it is likely that it was built using a lead based paint which has since been painted over. I plan on renovating a portion which will involve the removal of a wall. I understand this may raise some red flags for the city? Any one know how to navigate through that?

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Kyle, just taking a look at the cash flow economics of the property based on the information that you provided I certainly don't see the value in buying and holding that property. Based on my numbers I am running my max basis (purchase price + rehab costs) for a property like that would be around 136k. I am technically not even a real estate investor yet so take my opinion with a grain of salt. However I do network with as many real estate investors as I know and read as many books as I can as I am just waiting patiently for an opportunity to create a deal. I don't get much into the weeds with flipping because that is not my next move however in this sellers market, especially in provo, I think its definitely doable with the right process.

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This is super interesting. I just looked at your website and I love your business model. Will you guys have any projects in Utah coming soon? Other than your website where can I learn more?

@Steven Bond

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Originally posted by @Johann Jells:

I don't know your local laws, but here in NJ increasing units is very difficult legally. Be sure of your ground, talk to a local attorney.

We will for sure. Thanks for the advice.

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All Forum Posts by: Collin Baumann

Collin Baumann has started 8 posts and replied 26 times.

Post: How to address tenant violating lease?

Post: How to address tenant violating lease?

Post: Due Diligence Period

Post: Due Diligence Period

Post: Due Diligence Period

Post: Due Diligence Period

Post: Due Diligence Period

Post: Seller Finance in Provo Utah flip or rental

Post: FIG - Fourplex Investment Group Reviews

Post: Please Help! Buying a Multi-Family and Owner Occupying