All Forum Posts by: Jason V.

Thanks all for the posts. I feel like I usually know the answer but need a sounding board like BiggerPockets to test my thoughts out!

I have a triplex worth about 330,000. I am about 10 years in on the property and have about 100,000 on the mortgage at 3.875%. Assuming I find another multifamily that would cash flow, how would you all finance the deal. DSCR loan? I am not interested in investing with anyone, just looking for some advice on how to scale without giving up too much cash flow. Thanks!

Here's my take. I had 90% of knob and tube removed in a triplex and will be finishing a small amount (lights in ceiling) when the other tenants move out. Removing it now will give you a piece of mind and you won't have a cost down the road that you wish you would have taken in the beginning.

I had electricians install raceway wiring in some areas to minimize cost and holes in the wall. I understand there are lots of houses with knob and tube that may be just fine, but I wanted to be ensure that I protect my invesment and that the tenants are safe. The piece of mind was worth it. 

Thanks @Marcus Auerbach. I figured I would check!

Do any investors from Wisconsin know anything about home improvement loans or grants for landlords to upgrade property? I would like to update the electrical in the lower unit of my rental and heard they may be a program for that through the state. I looked around, but couldn't find it. The apartment is in Waukesha County. Thanks!

@Malcomb Stapel That may be the route that I will go, as it would cover my expenses  and still cash flow. 

@Zachary Inman The 1031 constrains are a big concern of mine. The 45 day window seems like a challenge. 

Thanks for all the replies. 

@Kevin Sobilo Thanks for the reply Kevin. The electrician should have an easy time running from the basement, as the balloon framing is clear to the attic. I also thought of requesting raceway wiring when possible to avoid cutting lathe and plaster. My problem is finding electricians that would take the job over new construction, as everyone is busy working nowadays. Several electricians have seen the house and told me not to worry about it, but I would like everything updated for piece of mind. If I keep the house, I am thinking of one apartment a year to help lower the initial upfront cost. 

I have a three family house built in 1900 that needs updating. The inside of the house looks great and is good shape, but the wiring in the walls is knob and tube and will need replacement in the near future. The panels were previously replaced with most of the knob and tube in the basement removed. Some additional bathroom outlets were updated too. The driveway is also at the end of its life and will need replacement soon. 

The estimates for both jobs will be a total of around $30,000.00. The house rents for $2,000.00 a month. Expenses are around $1,400.00. The house is worth about $260,000.00 and has a mortgage of around $107,000 left. @4%. 

My question is should I go through and update the property to keep it or upgrade to a newer future property with a 1031 exchange, most likely offsetting the value of the sale house with repair concessions. It's getting tougher to find properties that will cash flow well and the timeframe of finding a like replacement property in this market concerns me. 

I think I know the answer, but want to get some guidance from the great folks at Biggerpockets. 

I have a triplex in Waukesha in which the prior owner had the service panels replaced and all knob and tube wiring in the basement changed out with new wiring by a qualified electrician. Additional new circuits were ran to the kitchen and bathrooms. It was inspected by the city with no problems. I had numerous electricians tell me the old knob and tube was ok, but I will be replacing all of it in the future for piece of mind. Good luck!

@Caleb Brown No problems with insurance from various companies. I specifically checked the contract when signing to my current provider.

@Michael Ablan I agree. I am going to have the electrician fish through the balloon wall framing in the center of the house, as it will be fairly quick to get to the second floor. The first floor ceilings are going to be where the most lathe and plaster damage will be!