All Forum Posts by: Eric Knapp

The idea is that of the investment of $80,000 that you made, the 12K down payment and the 20K rehab cost came out of your pocket. If you refinance, you pull the 32K back out to use on your next investment, and use the income produced from renting your duplex to service the mortgage, cover expenses, and create a fund for future capital expenses. Because the loan is based on 70% LTV, you have equity in the property and are hopefully not over-leveraged.

Not to be a downer, but I would worry more about the window - what do you plan to do with that?

If you have enough items in usable condition, Salvation Army may actually come pick them up. They do around here (Syracuse), but I don't know about Queens.

Hey, Gus,

Welcome to the site. I am a fellow upstate NY-er - living just west of Syracuse but born in Elmira - closer to your neck of the woods.

As far as the books, get RD/PD from the library - you don't need to own it. It is great in explaining a general way to look at money, but isn't a how-to manual. It is very general and motivational if one needs a paradigm shift, but you probably won't read it more than once. E-myth is a good read. Can't speak to the 2nd book you list, but I found Keller's Millionaire RE Investor helpful, especially in explaining basic concepts to my wife, then for a little more detail, he put out books called "Hold" and "Flip". J. Scott's rehab and flipping guides very helpful if you are going that route.

The forum here is a better resource than any of those books, though.

I wish you and your fiance the best.

Richard,

I would share your concern. I wanted to state for the record that some small direct-vent units can be a wonderful problem-solver and do a great job. However, the specifics of your situation could be cause for concern - some may like a cooler bedroom, but almost no one likes a cold bathroom. Correct placement is important.

I recently did a huge rehab on a 1600 sf 3/2 SFR that was post and beam construction, which made it very difficult/cost prohibitive to run ductwork in an attractive manner. Also chimney was bad. Long story short, I installed a total of 5 direct-vent heaters throughout the house, and they are awesome. It allows zoned heating and is quite efficient.

2 caveats, though. First, some thought needs to go into placement and air flow to make sure the home is heated thoroughly. Second, when I had the house appraised for a cash-out refi, the appraiser was not familiar with the heat and needed some more info. Then, underwriter had questions as well. In the end, I was able to supply the info and everything went off without another hitch, but people are naturally cautious with the unfamiliar. The problem is with the term "space heater", which makes people think of units which are specifically NOT designed or legal for primary heating source.

I would have a heating expert familiar with these units inspect - if he is confident that they are adequate and appropriate, then proceed. I am entering the second winter with these units in the rental and tenant has been very happy.

Based on what you are saying, if the apartment is ready to rent Nov. 1, then take the tenant who is ready to move in on Nov. 1. The first applicant agreed on Nov. 1. She is backing out of that agreement, not you.

The lawyers for Dunkin Donuts just called. They want you to blur their logo!

If it is an open house, then it is an open house. Anyone can walk in and have a look, and you don't have an obligation to explain yourself at all. You may run into this situation occasionally though, salespeople are sometimes a little eager, shall we say.

I think it is great to spend time at open houses. You will learn a bit about the market. If, however, you are making appointments to see houses, then I would be very open about what you are doing, so you don't take undue advantage.

It could go both ways. On the one hand, there are regions where there is radon, and the mitigation systems are very effective. I would consider it a positive to have it in the house.

On the other hand, there are some people who don't seem to be aware of the threat of radon, and just go through life ignorant of it. You start explaining to them what the system does, they might get the willies.

So, probably some potential renters will shy away from it, and some will be grateful to have it.