All Forum Posts by: Mark Del Grosso

I have been know to let people slide a little but $4800 is WAY too much. 

In the end business is business.

I have done the math several times on splitting the gas and electric on my duplex. Every time I come to the same conclusion. If the system is working good and the tenants are happy to pay the extra, why take on the extra expense.

 I was told a story about my 15 unit's prior owner. It had one heating system for 12 of the 15 units. Sometimes the owner would drive by and see a third floor window open in the winter. His brother-in-law was a HVAC man. They would constantly talk about how to separate the heat. The brother-in-law didn't believe it was worth the expense but agreed. Once they got about half way through the job the realized that it was going to be way more expensive than they planned. They finished the job. To this day they don't speak to each other. And then, out of frustration he sold it to me.

 Moral of the story is it would have been way cheaper for him to look the other way.

Do the math.

I have a duplex that both the gas and electric is single meter. My rent increase is $200 per unit to provide these utilities, but the budget billing is $246 per month for the whole house. So I actually increase my cash flow because of it. There are times when I have to do a little explaining to perspective tenants why my rents are above average, but most like the idea of not having to worry about utility bills.

 Because I am making extra profit I don't sweat when I see lights left on in the basement. I had one tenant who was so energy conscious that the bill went to $208.

http://wivb.com/2014/08/04/locked-out-lockport-ten...

This happened over the summer. It had to do with mold.

http://wivb.com/2014/08/15/residents-allowed-to-re...

As I got closer to the date of quitting my day job I have reduced the term (yrs) of a loan. This sometimes took a property that cash flowed with a 20 yr term and made it a break even property with a 10 yr term or less. I did this to time it where several properties would be paid off within a few years of each other. So I could nail down a "get out of jail" date.

I know that is not exactly your question but food for thought that the terms can change the cash flow.

Having said that I do not buy properties that don't cash flow.

Learn to walk away.

This has been a Hot debate in my house (pun intended). My wife wants the TV above the fireplaces. Our home is a 1937 Spanish Villa style with a brick open fireplace that we use a lot (it's been know to get cold here). Because the wall is stucco covered brick running the wires would be interesting and the heat always scared me. The TV is on the opposite wall for now but if I know my wife some day I will be moving it.

I've always wondered what the TV manufacturers recommend.

Yes @Gerald Harris  The one month cash flow will cover it. However it is frustrating to pay for something and not get what you paid for.

Thanks for your reply

So here is what happened.

  June 2014 I purchased a three unit bank foreclosure. September my school taxes were due and I paid in full. Last week I got a letter from the city treasurer that there was a unpaid late fee of $192.22 from the 2013 school taxes. I called the treasurer to tell them that I did not own the property in 2013, which she confirmed, but said the bank paid the taxes a month late and never paid the late fee. So I called my closing lawyer who said he would contact the bank to get them to pay the fee.

My question is what if the bank doesn't pay it? Should I ask my lawyer to pay since I am paying him to make sure these things are clean before the closing? Good luck with that, right.

Obviously it's only $192 and not worth having a lien, so in the end I will pay it if I must.

Any thoughts or similar situations?

Craigslist response: I am interested in this home.

My response: Great. Thanks.

As many have said investing in a dying city is a different style of investing. Not for the "faint of heart". My advise for you if you want to enjoy the lower prices and cash flow of the "rust belt" is to invest in the surrounding towns of a large city. If you do your research you can hit it right and get the best of both worlds.

Also I would recommend you wait till you get there to decide if you want Section 8 tenants. It sounds to me like the QUALITY of sec 8 tenants is very different depending on location. I am always shocked when someone on BP sings the praises of section 8 tenants. That has not been my experience to say the least.