All Forum Posts by: James Albrecht

I'm curious to get feedback on whether it would be worth the expense to install a 2nd boiler / hot water heater for a small duplex so the tenants can be responsible for their own gas usage. There is currently one mid-1980's 84% AFUE boiler with separate zones for each unit and one hot water heater. I've been told this boiler is in good condition with no issues. The water heater is older (2008), but is still functional. There are separate gas meters and electrical panels for each unit.  The upstairs tenant pays for the cooking gas for his unit, but I pay the gas bill for unit 1, which includes the gas for the boiler and hot water heater.  The recent 12 month average for natural gas comes to approx. $125 / mo.   I'm currently leaning towards keeping the equipment for unit 1 and installing a natural gas high-efficiency combi system for the small, 600 square ft upper apartment and having this system connected to that unit's gas meter and having the tenants of each unit pay for their own heat / hot water.  The cost for such a system is high.  The bids I'm getting are in the $13,000 - $15,000 range.  However, I can finance this and depending on the financing option I go with can likely get the monthly cost down to about what I'm already paying for the average monthly natural gas bill.  Then my cost is fixed and not subject to rising natural gas prices or varying usage and weather conditions in the future and obviously once the system is paid off will significantly improve cashflow on this property. It would also add value to the property. The main downside I can think of is having two systems to maintain instead of one, although the new system will likely be under warranty for a while.  I've also considered billing the tenants for their portion of gas usage based on square footage using RUBS, but this sounds like a hassle. Just curious what other investor's thoughts are on the best move.  Thanks

I worked with Rachel Schromen, owner of Schromen Law LLC in St. Paul. She's been great to work with and I highly recommend her.

Congrats on the first househack! Best way to get started in my opinion. The rental income you're collecting now can definitely help qualify for the next investment and you can potentially use the prospective rental income from the next property to qualify. In my experience (on my second househack) lenders will count 75% of the rents in the DTI calculation, but I think you need two years of schedule E rental income history shown on your tax returns. Perhaps there are some lenders out there that are more flexible. Never hurts to talk to multiple lenders. I've heard local Credit Unions are often a good option. Best of luck!

Thanks for all the responses. To clarify, the insurance co. already made a payment for the actual cash value for the damages indicating that the rest of the approved funds would be dispersed upon completion of the repairs. What I've been told is that code requires replacing the decking and underlayment when there are gaps in the wood planks as is common with older homes and that because it is a code issue and my policy has code upgrade coverage the policy should cover whatever is necessary to be code compliant.  

The loss was damage to a roof from hail. The insurance co. only approved payment to repair two slopes with damage but the contractor states the whole roof needs to be replaced due to existing gaps in the wood planks requiring the installation of new decking and underpayment according to manufacturer specs. He competed an estimate explaining why this is needed, submitted requested photos, spec sheet, etc but the insurance co. is digging their heels in on only covering the partial replacement. I’m hoping to find a public adjuster or an appraiser who can assist with coming to an agreement on the payment dispute and looking for any advice anyone may have on how to go about finding someone or other insights on how to to handle this.

Has anyone requested an appraisal to resolve an insurance payment dispute on a claim?  (IE: If your contractor's estimate to complete repairs far exceeds what the insurance adjuster approves and the insurer won't budge).  Looking to get insights from anyone who has gone through this process. My understanding is that one can invoke the appraisal clause by demanding one in writing and having a 3rd party adjuster or contractor evaluate and write a report.  The insurer does the same and then the two come to some sort of an agreement to settle the dispute or it goes to an arbiter who makes the final call, which is binding.  Does anyone have recommendations from personal experience of who to hire to do the appraisal?  

Great to meet everyone and chat. Didn't get to talk with everyone but looking forward to connecting more at the next event.  

I'd try calling the County's Social Services Intake and ask what mental health services they offer.  Your tenant will likely need to call himself but you could facilitate getting him connected.  They may be able to provide housing resources for him too.