All Forum Posts by: Jacki F.

@Josh C. Uggghhh 16k yeah that’s painful. Yeah I try to get at least three quotes for any project, and every contractor has a different take on the issue and different pricing so that has been helpful, but that’s great advice to do my own research as well. I’ll be looking at more YouTube videos before calling contractors now.

@Jason Turgeon looking into this- thank you!

@Josh C. Nope, never replaced one, didn’t even know what a ballast was until I purchased a building by with fluorescent lightening tbh. All good info- thanks!

@Mike Larson Makes sense and agreed... Probably a good idea to have more of a say in the quality of a more permanent fixture.

@Cason Acor  Yesss! Learning this lesson quickly!  

@Austin Martel That is helpful! I assumed it was usually the tenants responsibility since it was part of the florescent light fixture, and they were NOT happy when I told them to pay for it and they're now fighting me on it. As a new landlord, I didn't want to pay for something that was obviously a tenant's responsibility, but if it's a gray area, I'll feel better working with them on that.  Thank you!

Hi Bigger Pockets! Hopefully a quick and easy question;  Are commercial tenants responsible for fixing bad ballasts in the florescent light fixtures in their suites, or is that the job of the landlord?  

The only lines in the lease describing who pays for repairs that could pertain to lighting/electrical in the individual units are these:

"The Tenant agrees to maintain Property in good order and repair, normal wear and tear expected. If Tenant does not promptly perform its maintenance and repair obligations as set forth herein, Landlord may make such repairs and/or replacements and Tenant shall promptly pay the costs of the same.

....Landlord shall keep the common areas and all major systems serving Property and/or the Common Areas in good working order and repair, normal wear and tear expected."

Thanks in advance!

@Ronald Rohde - My business that I'm moving into the commercial building is an S-Corp. The building itself is under a separate LLC which will be on my personal tax returns- so I believe the LLC is a disregarded entity? I'm not clear on what makes an arms lengths lease agreement, but I am charging the higher end of market rates, and the lease is the same as what I am using for my other tenants except for the higher rent.

@Matthew Nicklin  Thanks! Yeah, I'm wondering if most appraisers would look so close to see that I owned one of the businesses renting from the building, especially if I'm using two completely separate LLCs with different names.  Good to hear that what I charge myself in rent may have an effect on the appraised value, always good to have more control!   I'll check out that youtube video- thanks again!

Commercial Real Estate Newbie question here!  

I purchased a 7500sqft, 5-unit office building under an LLC that I use for my RE Investments. I purchased for 410K and the building appraises as-is at $520K. Current renters are paying way under market, and the building is U-G-L-Y.

Currently two units are rented out, and I'm moving my other LLC "day-job" into two of the units, and will be paying my RE Investment LLC rent.  My plan is to refinance asap to get my down payment back out, just as soon as I finish sprucing up the place, raising rents, and finding one more tenant.

My question is: Can I raise the value of the property by charging myself the higher end of the rents for the area (which I don't think I'll be able to get for the other units)?? Example: If my other units are paying $13/sqft and I'm charging my other LLC business $19/sqft to raise the NOI, when it comes time to refinance, is the bank appraiser going to look at that and see that I am essentially renting from myself and charging myself a high rent, and therefore not honor the higher NOI for the appraisal??

Thanks for your help!

canton, georgia, woodstock, cherokee county, refinancing commercial, owner operator,