All Forum Posts by: Kristine Ann

A sump pump is to pump water out of basements, so you might not be an area that needs those. 

The only other thing is the siding, roof and and any absent or loose flashing.  Water is getting in somewhere and then traveling to that bathroom and closet. Did you have roofing company check the roof?  You said it isn't obvious that it's coming from the roof, but if rainwater is coming in from one damaged area it can easily be pooling and then traveling to that area of the house. Have you been in the attic?  It might be more obvious where the water's coming in if you go up in the attic when it rains. 

Is it a basement apartment?  Is there a basement or is built on a slab? Do you have a sump pump? How much water is there?

If there's a sump pump, make sure it's working and directing water correctly.  

On a clear day and with tenant notification, get a hose on the outside and spray it at individual windows and doors in the suspect rooms.  Sometimes windows aren't sealed up properly.  I had a house that flooded when it was pressure washed because it didn't have a good seal around it.

Is there anyone on here that has offered coliving on a small scale?  Coliving is basically when you rent out individual rooms in a nice home.  It's set up for roommates and housekeeping is included.  Sometimes shared kitchen items are provided, like olive oil, coffee pods and creamer.  It's people-intensive and blends the amenities of an airbnb  with a boarding room/inn concept.  

I'm looking at a low cost of living area that's plagued with a housing shortage. My thought is to buy a large home, alter it slightly so it's set up for roommates instead of a family, and then rent to individual professionals that work at the hospital or local school district.  

Has anyone does this? Can you recommend from resources or things to consider?

In my opinion, Micron won't be up and running for about 10 years.  Construction starting at the end of this year or beginning of next will last 2-3 years at a minimum and then they have sensitive  equipment to set up which will take another couple years. Yes, there's been a lot of pomp and circumstance hailing the coming of Micron, but I think the effect on the economy won't be felt for about a decade. 

I just wanted to caution the out-of-towner investors.  They see the houses listed for 80k or 100k and they'll get themselves into trouble without a dose of realism, in my opinion. 

Yes, Syracuse is a diamond in the rough.  Don't just buy cheap houses in the city, though. I would recommend going to the city and touring around so you know what you're getting into.  There are some very rough parts.  The old houses in the city need a lot of TLC.  They all have lead paint, asbestos, and radon. 

You could theoretically buy up one or two blocks of dilapidated houses near SU or Crouse Irving for cheap and fix them all at once and change the look of that particular block in the city, but it would be risky.   Renting to SU students can be a complete nightmare because they can be heavy drinkers and destructive.  There are serious students at SU and graduate students, but I don't know where they normal live...maybe out in the suburbs.  

Some of the streets are less desirable because of the slope of the road/sidewalk and all the locals know you can't walk or drive on that street in the winter....something you don't know as a out of town investor.  

There is also a culture of frugality overall.  Don't think just because you're putting in nicer countertops and cabinets that renters or buyers will be willing to pay for that.  

Overall the people in Syracuse are working class or lower middle class.  There's isn't much as far as generational wealth.  Houses did not increase in value that much over the last 20-30 years....and there's a reason for that.  It's a depressed economy and you're not going to be able to get great rents. Making smaller apartments from single family isn't going to go over well either because people are used to getting more square footage for their money, unlike in NYC.

Micron is putting a chip factory in Clay, which is northeast of Syracuse. Probably won't be built for at least 10 years.  It caused a surge in home and land prices in the Clay area. Overall the chip factory will promote a better economy but it may take time, maybe one or two decades.  

There's a lot going for Syracuse, but tread carefully.  There's an international airport.  There's also Syracuse University and Upstate Medical Center.  It's also smack dab in the middle of the state, so it's very central for conferences, shipping, and commuting.  Even still, be careful.

Yes, it's possible that I might of done the math wrong.  Wouldn't be the first time.  When you put it in a spreadsheet and add in the interest to the principle every month it ends up being 30% annualized.  On interest-only loans you're paying the interest off every month but in this set up the interest accrues. 

He's got great goals, but maybe not enough life experience yet.  Not sure if "enthusiasm" is what one needs for wholesaling.  If I was in financial distress and losing my home through foreclosure or tax delinquency, I would not want to deal with an enthusiastic newcomer trying to make money on my misfortune. These are people who fighting cancer, had a death in the family, or otherwise are in a bad situation.  It takes a lot of life experience and finesse to deal with people coping with huge life struggles.

If I were young and starting out, I'd offer paid services for clean outs and basic staging/moving around furniture. You'll naturally meet  people who want to get rid of their headache, I mean house, that they inherited.  You can then pass the information along to someone else for a finder's fee. 

I agree with @Travis Main that you'll want to build a W2 job.  You're going to want health insurance and a steady paycheck.  It really shows you're stable to lenders as well when you've held down a job for a few years.  And you'll meet people who aren't in real estate and it's always good to have connections in many different industries.

Good luck and let us know how you do.

Overall I think paying off a mortgage isn't the way to go.  You have to pay the entire thing off before you see any change in your cash flow. If you had 84k laying around it would be a different matter.  

I would get a heloc set up either way if you qualify and have the equity for it. There's no reason not to get a heloc. You only pay on it if you withdraw the money. It's great because it opens up options.  You can save it for when you have a large repair or a vacancy.  Or can you use it for another investment.

If you have one heating system controlled by two thermostats, don't you have to include the heat in the rent either way?  There would only be one gas bill, correct? If tenants are paying their own heat bill, they would call the gas utility and have the unit put in their own name, but tenants can't do that if the heating unit is shared by all four units.

You won't have happy tenants if you are in control of the heat and you aren't even on premises.  Some people want it at 80 and others at 65...they will all be  unhappy.  The temperature in the hallway may be very different than in one or all of the apartments due to drafts and just how the vents are set up.  Heat often isn't distributed throughout a building equally.  Some apartments might be burning hot and others cold as ice.  

I've run into owners of airbnb's keeping the heat/AC at 80 and refusing to change it remotely.  It makes for a a very unpleasant stay and very unhappy customer.

The real estate person doesn't know what down payment you will need. You need to ask your mortgage broker.  You probably need 10% for a down payment plus closing costs which could be another $10-20k.

You can put in an offer contingent on selling your own property.  You schedule the closing for your property first, then close on your new property the next day or even that same day in the afternoon. You move you're stuff into temporary storage and then move it back into your new property. It's a hassle.