All Forum Posts by: George W.

It definitely depends on the municipality. Some towns would make you get a variance which can be a pain.

Thanks for all the replies. Alot of great info. I think I would try to maintain majority of the responsibility. Was more so thinking of having a 25% paartner who'd be more passive. 

So if i decided to go a joint venture, basically I'd still have to do an LLC? but if the investment is out of state would i have to set up the LLC in the other state or would it be enough to have one in just my state?

While part of me thinks that it's a good idea to invest with someone another part of me screams no haha.  

So has anyone ever done there first deal with a partnership out of state? I am going to invest out of state because mine is a expensive place to start. I can afford to do my own deal out of state but am considering possibly finding a 25% partner who is familiar with the area more/lives close. Reason being is that it'll cut back on expenses for me slightly on a first deal. Also it would be good to have a set of eyes near the property. Big question is would that definitely mean starting an LLC? Additionally lets hypothetically say i needed a new roof and it cost 10k and my partner didn't contribute, would that mean i could legally take their share of the roof (2.5k) off of their 25% cashflow? Also owning 75% would that mean i would have more say on selling the property later? Where have most of you guys met your partners? Do you overall regret your partnership? I'd like to hear some stories both good and bad. Thanks!

1. If you provide a washer machine get new stainless steel washer machine hoses with burst protecting check valves inside of them. If an old rubber hose were to burst on a washing machine and nobody was there it would just keep flowing out water like crazy potentially ruining a apartment. have seen it happen at work.  

2. If you have a dryer get the exhaust vent cleaned out. Its the #1 cause of fires in houses i believe. 

3. Change toilet fill valve and flappers.

4. Put hinge door stops on any door that can hit another door or the sheetrock behind it.

5. Find your clean-out plugs for main drain ahead of time to possibly save headaches.

6. Don't use cheap tubular waste under a kitchen sink. Do schedule 40 PVC trap and waste piping use no hub couplings for easy removal.

In general use the KISS system. Keep it stupidly simple. Always spend a few extra dollars and get professional grade materials. 

Definitely go with PEX. Stay away from very cheap pex. Get a good brand. Nibco, Uponor, Viega Etc. Also PEX should make you more money cause its doing the same job with a faster & cheaper install. Copper is also very good as long as you can solder a good joint but a but more expensive if your re-roughing an entire house. Just stay away from CPVC that stuff is garbage.

Maybe you could pay for the soil testing as part of your contract. if there is any contamination in the soil it'd be a no go as re-mediating the soil would be very costly and you'd still be able to pull out. If there's no contamination in soil then after closing remove the tank which i'd imagine is still pricey. It would be better to pay whatever it is for testing soil out of pocket before closing and lose the money if tanks leaking then to buy the house as a gamble and have to re-mediate afterwards. Underground oil tanks are always a headache i'm sure the seller is having a very difficult time finding a buyer. So you can probably negotiate a very good deal. NYC is difficult with underground oil too because NYC has their own DEP just like NJ which is stricter than federal standards/EPA. 

That is a really good question. I have thought of that idea once before but not really sure if it's the correct aanswer. Maybe you could do a partnership where you sell 25% of your down payment and costs then split everything with your partner. 

Ex: 100k loan. 

down payment 20% $20,000

Your share  75% $15,000

Partner 25% $5,000

Then split everything cashflow, expensess, etc. 

But then id imagine you'd need an LLC and I'm sure partnership is very rough.

I think that its okay but you should definitely learn about the city you plan on investing in. Also i'd look for a agent whom really knows the area well. I plan on buying a MF building out of state for my first buy because it is more affordable. Im going to do a drive through a city I want to invest in this weekend to get a general vibe of the area. Speak to locals see if they notice any changes in the area as a whole for better or worse. If it is a city I wouldn't feel comfortable living in myself I'd probably think twice about it. Last I would make sure that the good deal is a good deal in that city. Just because it's a good deal in your city doesn't necessarily mean it is in another.