All Forum Posts by: Jonathan Sowinski

“the lease says ‘no smoking’ you just mean cigarettes right?”

Some of the LL I know that rent to students require payments be paid by semester or school year in advance to attempt to minimize any lost rent. They claim that it works and most of the checks end up being from parents.

They also budget for annual cleanouts and minor rehabs mainly plaster repair and paint.

As Steve stated you probably can’t get around the tenancy issue with multiple leases and I would imagine that local law also prevent you from renting them out as individual rooms either but it may be worth looking into. How close of a relative do they need to be to be considered “related”?

[url]https://entp.hud.gov/idapp/html/f17cnsltdata.cfm

how do you include a link????

If you decide to move forward with your plan keep in mind that the 203k plan pays contractors in a very specific manner. Some contractors won't deal with the 203k projects for this reason as well as others. However, there are contractors and consultants listed on HUD's website that have been "approved" for the 203K deals. I am not sure that you will find one of the best cost and quality from the list but it may be a good place to start. Also, if you don't use one from the list be sure to mention that you are using the 203K program to any contractors that you have bid the project.

https://entp.hud.gov/idapp/html/f17cnsltdata.cfm

Not to get too off topic but I believe he would be able to roll up to the first 6 months of mtg payments into the loan to cover the time that they could not live there...

Like the others above, I wouldn’t look at this as much of an “RE investment” (which I don’t think you are looking to do)I but rather as a way to better invest your new home…

Not to get too off topic but at our last REI group meeting we began discussing the issue of the death of tenants…did this tenant have family or a Will with instructions for their estate? I would be very careful with how their property is handled without knowing; depending on your local laws thing can apparently get very tricky. One of our members ended up having to hold property until a probate officer was assigned to liquidate the estate. Another got caught up in court being sued by some relative of the deceased almost a year later…

Besides owning our own house (3/3 dbl) our first deal was an 8 unit, and as Bill mentioned it is NOT a newer building, BUT I am handy. It has worked out for us have been able to turn around 2 units for a 45% increase in the rents (was $500 now $725) with less than major work. I would agree that if you are planning to manage yourself it will help a ton if it is local.

I agree with hard wood and area rugs, your tenants could have an opportunity to personalize more with area rugs. I just refinished one of our apartments 120 year old floors and I am super happy with the way they turned out.

To boar you with the details:

We were using this unit as a sort of test unit (one of eight). We got in and did a little exploring and saw what was and wasn’t possible. (We actually just finished last week and got a lease signed for April!!! On to the next one…)

We did all floors but the kitchen and bath ~600 sqft total. The floors were a huge question mark and took some work but in my opinion still worth the effort. The floors were in terrible shape (120 very rough years) and this was defiantly the last refinish they could handle. They had carpet installed over them more than once and was actually glued down at some point (the glue was so old that it crystallized and fortunately came up with the rough sanding). The worst part was getting the staples and tack-board up. Do the next owners a favor and do not put down the carpet, they may want the hardwood if not it is easy for them to install the carpet.

Our floors are in no way perfect but neither are the apartments so they complement each other well (some people pay extra for the “distressed look”).

Total cost for me was ~ $300 (sander rental, sanding pads, poly) and took a solid weekend myself (plus a day of drying before the second coat of poly).

We are super happy with the outcome, now we have a floor that matches the character of the building, are less long term maintenance and cheaper than carpet. I imagine that if your floors are in okay shape it would be a much less involved job than mine and it sounds like you doing it yourself and are handy. I bet you can do this yourself too, just read up on it and use an orbital sander.

This is one instance that size might matter, how big is the job? I would assume that the above quotes are for larger jobs, and unless you have a great relationship with someone, smaller jobs may run you a bit more up to $1.40. But, if I understand you correctly you are just looking to have the finish work done, I am not sure what that would run you.

Unfortunately, not too many people are looking to clean up your mess and give you a good deal. No disrespect here, I am not saying that your work is messy, especially without seeing it, but working in the business I can tell you that most drywall guys particularly finishers claim that any work that they have not done themselves is F*ed up “looks like a beaver to cut this board” and “did you spread this mud on with your face cause it’s almost as ugly” are two quotes I remember that don’t involve inappropriate comments about the size of the gaps in seams.

I also agree if you are looking for perfection and to save time hire a pro, if not… try using the 20 and 45 min bags just mix what you can use before it begins to set and if it is very humid where you are working invest in a dehumidifier I couldn’t believe how much quicker everything dried; I was able to get 2-3 coats on a day, long days...if it is in the budget hire a pro.

Schedule E tax form from the last 3 years. As long as he does not lie to the IRS it should tell you most of the story as far as income/expense history.