All Forum Posts by: Eric Bunratty

I have a 4-unit property, that I got investment financing on from a major bank: 25% down, 4.75% interest. I have a pretty unique work situation -- I travel and stay in hotels 95% of the year, so I don't need a "permanent address" and wont for the next ~3 years (and I just stay with my parents during down periods while I am not traveling).

So my question is, could I refinance this property into "owner-occupied" financing if I simply list it as my permanent address or do I physically need to occupy a unit (for the 10 days a year when I am home). I'm assuming the bank will need a copy of the tenant list and would want to see one unit totally vacant with my name on it... meaning I would only be able to rent 3 of the 4 units out until a year passes by and then i could start renting all 4 again.

To be blunt about it, I want to qualify for owner-occupied financing on my 4-plex, and rent out all 4 units -- does anyone know if this is possible? And because I travel for work all year, I don't actually need a place to live.

Any chance to subdivide? I don't need 168 acres, but a 20-acre parcel (assuming its Oregon, coos bay region) sounds pretty nice... 

@Matt R. you are the man! So actually, I was doing some work in one of the units and I noticed the toilet was using a TON of water. The guy helping me also found it strange that the tank had so much water in it, we tried adjusting it to fill less but couldn't figure it out. We were in a time crunch, so I made a mental note and moved on. 

Next time I am over at the property I will check what they are. The place was built in 75, and hasn't been upgraded too much so I'm guessing this is a big piece of the high water bill riddle.

Awesome tip, with 4 units in my place (and about 2 adults per), this could add up to some serious cash! I like the notes on the other hardware as well, when it comes time to upgrade I will be pulling this out from the archives. 

If you get bored, hop on netflix and watch the episode "nosedive" of black mirror. Creative spin on where that could lead society... I don't want to spoil it, but there is a good portion of the episode that is about the main character trying to get into a nicer apartment complex but needs to raise her social score first.

@Brent Paul yeah, the property has a decently big side/backyard that was perfect for some bigger storage areas -- I am surprised at how much stuff people accumulate! Good call on the utilities, I'm sure the feedback will come fast from the tenants and I will learn what works/doesn't. Thanks for the response!

@Michael Ablan I like the flat fee for the water sewer. In my discussions (offline) about a fee for water and transferring the garbage cost to the tenants, I have had a lot of responses telling me to simply just raise the rent:

• ie $1000 for rent and a $50 water sewer charge and $25 garbage bill OR just $1075 rent per month... 

Maybe this is a trivial question -- but I think that there is a psychological benefit to split out the costs instead of raising the rent. Does anyone have thoughts on that? It seems like being able to advertise the unit at a lower cost would have a positive result.

@Robert Winters great idea, after a quick craigslist search I found a vanity + sink combo that would work in a unit of mine (and is in great condition) and there is a guy getting rid of some tile that may work nicely for a small project I am considering. 

Hey BP! I am just getting started in both the real estate and BP worlds -- I love the fact that, as owners, we have the ability to pull on different cost-levers to increase the performance of our properties! I have a goal to increase my cashflow by 25% without raising rents... here's my progress and how I'm doing it. Would love to hear other ideas & feedback. Let's help each other increase the performance of our portfolio's! 

Current cashflow: ~ 750 monthly at a small multi-family property - 4 units

Cost Levers:

• Garbage bill: $105 monthly --> transferring to tenants; +14% cashflow improvement
• Storage Shed (8x8): 1000 install price yielding a $50 monthly cashflow --> +6.5% cashflow improvement

Other Opportunities:

• Water Bill: currently around 350 monthly - this is paid by owner which is the county standard, but I am unsure if it is a hard requirement. If it is, any upgrades that would noticeably decrease a water bill? This represents a HUGE chunk.
• Property Management Fee: +10% cashflow improvement 

User-Submitted Ideas:

• @jeff gates - side yard RV storage, $100 a month. potential advertising on exterior fence; +12% a month

• @AI Williamson - blog post with some good ideas; https://www.biggerpockets.com/blog/2015-04-28-ancillary-income-covers-63mortgage