All Forum Posts by: Joe Cicero

Hi all, I currently have two buildings/ five units under management in Rochester NY and am seeking advice for separate tenant issues in each building:

1) Tenant in a two bedroom is behind on rent. His lease expires at the end of this month and he is leaving, while his roommate (who is in good standing) plans to stay. I already plan to hold on to the departing tenant's down payment, but am wondering if his roommate's contribution is also at risk? If so, I figure its a good incentive to get the departing tenant to make us whole. Thoughts?

2) We inherited another tenant who has been challenging to deal with. Her lease is month-to-month, and we are ready to move on. Any suggestions on how best to proceed to minimize our losses? How does the recent rent control/ tenant protection legislation affect our approach?

@John Warren @Marc Winter, helpful thanks guys

Hi all,

I bought a 3-unit in Upstate NY back in Oct. I have battled with the local utility company every month since, as they had wrongly assigned meters and tenant payments have been sitting in limbo. This has been especially frustrating as I live across the country.

After 6 months of suffering, I finally got clarity on how meters should be assigned: 

• Entire house has a shared gas meter
• Unit One (1 BR) and Unit Two (1 BR) each has its own electric meter
• Unit Three (2 BR) shares an electric meter with the basement, which only the tenants in Unit One & Two have access to for laundry (Unit Three has in-unit laundry); apparently this meter also powers the fan for the furnace and the hot water heater

I'm seeking advice on how to fairly charge Unit Three for electric usage. I am familiar with RUBS and plan to install a solution, but leases don't expire until Oct. Anything I can do in the meantime? Unit 3's lease explicitly states that they are responsible for electricity. 

Thanks in advance!

Joe

Hi all,

I recently purchased a 3 unit in upstate NY. While it is cash flowing nicely, I'm already thinking about how I can generate capital for my next investment. The property had recently been flipped, so there is little opportunity to create new equity.

When we originally found the deal, the seller planned to rehab the attic & create an additional bedroom. However, we were skeptical that an attic bedroom would pass a C of O inspection. We offered that they don't touch the attic & sell for a 15% discount to listing price, and they accepted.

Now I'm wondering if there's an opportunity to do the attic work ourselves, get the building reappraised, refinance at a higher value & pull out any equity created.  My questions for you all are:

1. Has anyone worked with their city inspectors to convert an attic into a living space? How did the process go & what pointers do you have?
2. How would I go about estimating the incremental value that a rehabbed attic would create? How much incremental value would warrant a refinance?

Thanks!

Got it, thanks all.

Are there any advantages to NOT escrowing property taxes in my monthly payments? In this case, I imagine I'd pay for 5 months to close and then pay for another 6-month installment at the end of January?

@Nate Burgher thanks for getting back so quickly.

No, not a final closing statement. I discussed with my broker and he confirmed that the document is subject to changes before close. I also asked for clarification on property taxes, but remain confused (hence this post). He said that property taxes need to be escrowed in the case of default, but it doesn't make sense to me to have to pay for 11 months up front and then monthly on top of that. I don't suspect that this was done in error, I just want to be sure I fully understand for future investment.

Hi all,

I am closing on my first investment property - a 3 unit in upstate NY.  Reviewing closing cost details, I'm not following why I am paying 11 months of property taxes upfront AND as a monthly escrow payment (along with homeowner's insurance). 

Can someone please explain? Thanks!

Joe