All Forum Posts by: Devin Berrian

awesome! Thank you! I'm very appreciative of everyone's continued support! 

Thanks for the input, everyone. These are such helpful suggestions. 

On renting out the attic, it would present a fire hazard and is against the fire code. There are only 2 small windows from what I remember and no fire escape. We would need to either offer it as storage with a lease clause prohibiting occupancy or just keep it inaccessible to the tenants. 

I am going to see what kind of flooring I have now and compare the suggestions you have all provided. By the way, I'm not allowing pets. Anyone feel better about a medium grade carpet, or still no?

Thanks everyone, I just scrolled up and really appreciate all the input!!

Thanks, Roy. Some things to consider!!

I like the idea of marketing as a 2BR with office, though I'll still probably give that little bedroom (once redone) a closet just in case. There are many families in the area needing housing and I don't want to lose the opportunity to market to them. 

It is not quite nice enough of a street to modernize and market to upscale people. According to my agent, because of the location and size, with utilities I can get between $1,200 and $1,500/month in rent. I don't want the renovations to be so expensive that I don't recoup if I can't successfully attract upscale professionals. 

I will have to take a look at the flooring when I get in there again. We did two fairly quick walkthroughs. There is also a large walk up attic coming off the second story landing and not connected to the second story apartment, and full basement. Do you or anyone else recommend utilizing this space for personal storage, or leaving the building only for tenant use and perhaps closing off the attic and providing coin-operated washer/dryer in basement?

Thanks again.

Hey BP - 

I am soon to close on my first deal! It is a 2800 sf 2-family in the city of Poughkeepsie, NY.

There are certain parts of Poughkeepsie I never would have considered, but this is an improving street near the business section, and I feel really good about it. 

It is a 1910 Colonial with (2) 3-bedroom 1-bath units (and it came with 2 gorgeous clawfoot tubs!!!) 

Once I close, I will be taking my team of engineer, inspector, electrician, and designer to the property to help measure out rooms and develop a new floor plan. Most of the space is fine as-is, except one of the bedrooms is incredibly small and you have to walk through it to get to the other bedrooms, bathroom, and kitchen. NOT a great layout idea! We are going to be redoing the entire electrical, plumbing, and heating systems, so we aren't afraid to move some walls.

The hardwood in the living room and bedrooms looks good (isn't cupping or bowing) but I am not sure if I should spend the time sanding and sealing or if another solution is recommended. The kitchens currently have a cheap linoleum that may be usable but will probably be replaced, and the bathrooms have tile which can be patched in the necessary spots.

Has anyone found a durable and affordable carpet at Home Depot, Lowe's, or another home improvement store that you swear by for all your rentals?

Any feedback (on rehabbing, rentals, tenants, building materials, anything) is appreciated!!

So glad to finally be posting this. 

Thank you!

Congratulations! It is rare that all those improvements would be done by choice of the current owner at literally no extra cost to you. That's awesome. You also avoided what could have taken much longer than 6 weeks with the confusion and trouble with the separate signatures. I'm glad no one backed out because of the hassle. It's great you were able to sign new leases too and that the rents will more than cover your mortgage. Just make sure you can cover expenses (are utilities included in rents?) Otherwise you could be looking at paying around 50% of your rental income in expenses such as water, sewer, electricity, gas or oil, trash, and property maintenance, as well as insurance and that hefty tax bill. 

Best of luck! Hope to be writing a post like this soon!!

Im looking to educate myself about 1031 exchanges. Does anyone have any suggestions on some good books on the topic?

My girlfriend and I are going on 5 years, and of course facing the big questions about tying the knot from family and friends. However, our motto has always been, "We're not getting married until we buy a house." (And by house, we mean multi-family home). Recently, GF's boss (a wealthy older gentleman with 30+ properties and several successful businesses) told her about a property he's looking to sell. It is on 2.4 acres of property, on a semi-private road, great school district, close to shopping but quiet, safe neighborhood.  He obtained it in a deal years ago.

The property holds one 100-year old farm house converted into 4 units (3-1BR, 1-3BR) and a 40-year old brick apt. building with 4-2BR units. All units except 1 are currently occupied, which would work because we are living with our parents in order to save up. The property brings in $100,500/year. The owner lives about 2 hours away so to avoid vacancies and issues he includes all utilities including OIL (about $17k/year), water, garbage, and electric. The net income is about $55k/year.

There is no price tag, no asking price, it's not even publicly on the market. The assessed value is $385,000, and we happen to know it's going to need a new boiler ASAP. Septic was done in the last 5 years and the income potential is there. 

The best part is that he has offered to hold the note. So I need some professional advice. After paying the taxes & insurance (~$1,900/month) and other utilities (~$1,826/month) and putting $1,000/month away for maintenance & repairs, what is a reasonable offer?

We would like to offer $2,500/month to cover a 15-20 year loan at 4%. I know that sales vary greatly depending on the area, so let me know if you would like to lend me some advice, and I can give you a closer idea of location.

Thanks in advance, BP community!