All Forum Posts by: Corey Mohar

@Joshua Janus Windows 100%, as well as some doorknobs, siding and light fixtures. Some drywalling as well, and the balcony needs a little work. I had the opportunity to speak with the tenant - she's been there 7 years, and doesn't have any complaints (absurd considering the state the current management is leaving it in). All in all, I could see repairs/improvements getting upwards of $10K-$15k if I decide to have a contractor handle everything, potentially less depending how much work I do myself. I work in the construction industry as a structural engineer so I stay relatively in the know on what material costs are at. And there's plenty that I can handle myself as well which would cut costs as opposed to having a contractor handle every little thing. Running my own numbers on it, any more than $62k and it's either just a break even deal or a money pit. That said, I'm not claiming to be an expert or even that my numbers are 100% accurate - which is why I'm here! 

So I'm looking into buying my second property. My first I actually bought mostly for myself, and house hacked it by renting out individual rooms (which was allowed in my borough so it worked out). I'm looking at few properties now in my area, but with the market so tight, getting anything turnkey has turned out to be either out of my price range or bought up right away by investors with a lot more buying power. 

I found a property that is currently rented out, and the rent is a bit low for the area. The seller wants $72k, which is pretty high considering the all the windows need replaced, and there's a decent amount of work to be done to the exterior. I'm considering throwing an offer at $55k, with capping any counters at $62k. I could raise the rent by only $100/month and be making a decent profit, and it would allow me to immediately start updating the tenant's home.

Are there any forseeable complications with the BRRRR method with properties that are already rented? Obviously progress may be a little slow, but I have a decent paying job and make a good bit from other revenues, so time isn't an issue. Most of the necessary work is updating some of the appliances, exterior work and the windows. All of which aren't necessarily intrusive to the tenant's living space as long as it is properly planned out. Looking at other comps, if I could get everything back to working order, and clean up the property, I think I could realistically get appraised upwards of $100-$110k.

Does anyone have any advice on this situation, or any thoughts on whether or not it could be a worthwhile investment?

Thanks!

Up until this year I've used Venmo to collect rent from my tenants, and it has been very convenient for both me and them. However, due to the recent changes as of this year, I stopped accepting Venmo as payment. I'm more than happy to receive a check form my tenants, but they find it much easier to handle rent with online services. And it's hard to argue with them as I prefer electronic transfers as well. 

I currently only own one unit as a sole proprietor, but am looking to expand this year. However, I plan on buying my next property under an LLC. I've looked into products, RentecDirect as an example, and I just worry that they may be overkill at this stage. I'm also worried if mixing properties from a sole proprietorship and an LLC poses any challenges when considering these kinds of options.

Does anybody have any positive experiences with any software or companies that aren't going to gouge your cash flow? Or any feedback on my concerns with juggling a sole proprietorship with an LLC or even multiple LLCs when using these services?

TL;DR - is a/c alternatives to window units a strong selling point to potential tenants?

So in March I purchased my first property. I have a lot of student loans so I decided to house hack in a single family home in an area that allows you to rent out rooms to non-related persons. Currently I have one tenant (a friend I went to school with) and that covers about 2/3 of my expenses. I'd like to rent out another room, but one of the rooms in my house is a finished attic that will need a mini-split to handle the heat load. I've tried a portable unit but it can't keep up on hotter days and has to run 24/7 and is overall inefficient. I've gotten quotes for just that room, but I'm looking at getting the rest of the bedrooms done as well and it's really not that much more expensive. The house is semi-detached and duct work isn't an option for the upper floors. I've been running the numbers over and over again. If I were to get all of the rooms done, my expenses only really go up by 100 dollars a month, and I would be saving on electricity (due to Covid, many contractors are offering 0% financing so it's definitely a convenient time). The return from getting a new tenant would completely offset the cost, and even bring in profit. But in the long run, is this something that would typically improve interest in my home as a rental property? Very few houses in the are offer a form of air con that isn't "provide your own window units." I will definitely be getting the one room done, I'm just curious if investing in the rest of the house is worth it! I'll be living here for at least two years, and definitely wouldn't mind having it myself.