All Forum Posts by: Lokesh W.

I purchased a 5-unit apartment building in Milwaukee, WI this week. I already put a property management company in place. Any suggestions for the new building owner (i.e. me)?

I want to put a coin/operated laundry in the building (including a new water heater for this laundry equipment). Would it be better own this equipment or lease it? I’ve heard that these coin/card operated laundry always problematic (fails every other month or so). If the equipment keeps failing, then it will be a nuisance to the tenants, Management Company and I to chase down the technician and wait them to fix it. So I thought about leasing it where the leasing company takes care of maintenance, repair and replacement of the equipment. But then, if I lease it, I have to pay a monthly fee as long as own this building.

I know that having an in-house laundry will make this building more rentable and convenient (especially in Wisconsin where winters are pretty rough) so I really want to put this equipment within the next month or so. Does leasing equipment still result income from laundry?

Does anyone (or anyone you know) have experience in either owning or leasing this equipment?

Please share your experience. Any suggestions are greatly appreciated!

@Bill S. ,

Yes, insulation is the key to saving on energy. I have to see if this works ok. This is an REO and I'm visiting this property this weekend. I will try to get an furnace expert to go with me for an estimate.

@Ramon Jenkins ,

Thanks for your response. I will have to see based on the estimate of replacement. THere are other repairs that may need to be done on this property. The good thing about new one installed by a reputed company is that I don't have to worry about this for a while. The old one will always some small issue once in a while.

@Stephen Doyon

The house was built in 1900. This is in one of the best neighborhoods and most of the houses here are over 100 years old. I don't the age of the furnace.

@Dave Carpenter

If I replace the furnace before the tenant moves in, I can use the hard money financing for all the repairs. If I do this later, I may have to use my finance (which isn't so bad but this is a consideration). All this depends on the estimate of replacement.

@Mike H.

Thanks for the response. I wish I could get a discount like that in Milwaukee :). Yes, for that cost I would have replaced. I will see how much it costs here in Milwaukee...

I am looking at buying a SFH home for rental in Milwaukee, WI. It has the old boiler type furnace. I believe it works OK. Since I plan to keep this as a long term rental property, I want to keep this furnace instead replacing with the high efficiency furnace. At the time of reselling the house many years down the road, I may replace the furnace. Any suggestions? What are the pros and cons of keeping this old boiler type furnace?

Is it a good idea to replace boiler type furnace that is working fine with a new high efficiency?

Any suggestions are greatly appreciated.

Thanks

I just want to set the right expectations and it is easier to do right in the beginning. Yes, I will instruct them to use shovel for smaller snow and use snow blower for bigger snow days.

@Rob K. , $10 for the whole snow season? Is that true for Michigan, where you live? I know MI, IL and MN get the similar amounts of snow as WI.

@Jeff Greenberg , that’s a good one. I can obtain a non-liability document for injuries signed since they are using my equipment in my property. What do you suggest?

All,

After reading the comments, I am inclined to paying for gas. I don't snow blower is gas guzzler...

They will remove snow from all walkways, driveways and sidewalk as it states in the rental agreement. They seem responsible tenants and plan to live there long term so I want to be fair but not lose too much. I want know how this is done normally. Yes, I can claim tax deduction on 50% of expenses for the tenant side of the duplex.

So $100 per month plus gas expenses seem fair?

Not my employee

@Jon Holdman , @Edward Burns , @Kurt K. , I live in Wisconsin - known for its major snow; every season, there are days when the snow goes over 1 ft. This is an up/down duplex. I am paying them $100 per month for lawn care and snow removal. I own both lawn mower and snow blower. Is it fair to share the gas expenses equally?

btw, I live in Wisconsin - big snow! Yes, the tenant mows the lawn but the lawn mower is rechargeable electric so no gas is used.

Hello,

I live in a duplex and the tenant is doing lawn care and snow removal. For snow removal, they are I purchased the snow blower. Who pays for the gas? They said that they will send the gas receipts to me along with the rent check. Is this OK? I guess I could claim some tax deduction on the gas. How is this normally done?

Any suggestions are greatly appreciated.

Thanks

Lokesh