All Forum Posts by: Marc Winter

All the above responses are well-reasoned and have good advice for the specifics involved.

However, why ever put down carpeting in a rental?  We use luxury vinyl flooring and get much better value for the money invested.  In addition, most tenants LOVE the look and are relieved that the lvp flooring is hypo-allergenic.  Plus it's so much easier to clean.

Let them put down area rugs on top of the laminate, and take their dirt with them when they move out!

Keep investing and moving forward!

Not sure I understand what you meant:  the TENANT wants to make a deal?

If you meant the neighbor wants to sell, buy the property if you can.  Once you own it, take some free cash flow and get the wells separated.  

By doing so, I believe you'll increase the value of both properties.

The question might be:  why would anyone risk putting hundreds of dollars into an inspection WITHOUT a contract?

What the seller might do is negotiate a shorter amount of time allowed for the inspection to be completed. That will limit the amount of time the property could be off the market IF the buyer doesn't like the inspection.

Lastly, get a satisfactory amount of earnest money deposit on that contract.

Just say no.  If they don't meet your standard qualification requirements, it doesn't matter what they offer.  Remember the movie "Pacific Heights"?

In the 30+ rehabs I've done, I learned to start with the finished product in mind.  I'd prepare drawings showing dimensions, locate outlets for example electric, water, and gas) drawn in, etc.  Same for windows, doors, relocated walls, and so on.  

BTW, they do not have to be done by an architect at this stage--your rough sketch should suffice.

I made copies of the drawings and highlighted each system.  Example:  if a ceiling light needed to be moved and/or installed, I'd highlight where it should go (with dimensions noted) and give that to the electrician.  

It's best to go over each set of drawings while on-site with each contractor.  Listen to what they suggest, and make sure to keep an open dialogue with them to make sure you are both on that same page.  If it's a long-distance rehab, Facetime it.

Do this often enough and it will limit (not 100% eliminate) the chances of missing something.  That's just the nature of the beast.

Good luck.  Keep investing and moving forward!

@Lucas Schlund, where to look?  Start local.  

Get in the habit of looking at and inspecting what's happening re listings and sales in your local area.  Local = no more than 30-minute drive from your home base.

Yes, I mean going out and looking at the neighborhood, the property, the surrounding amenities, etc.  The more property you inspect, the more of an expert you will become in your area.

Once you feel comfortable with inspecting properties, learning the right questions to ask, understanding your local market, and HOW to evaluate each potential deal, THEN you will know a good opportunity when you stumble upon it.

You can transfer those skills into looking at other markets and will have some clues as to what makes a good deal.

Hi @Kevin Kim, your post did not mention if you asked the powers that be (lol) if you could keep the one pole, and simply have them install a separate meter for each building.

On multi-family property, we have installed multi-meter boxes with external disconnects as per the electrical code in PA.  When electricity comes into a meter panel, the exterior panels can be expanded, separate meters can be installed, and of course separate service entrance panels with breakers.  

Check with your trusted local licensed electrician.

In PA the water company offers sewer and water main insurance protection.  Over the years, that insurance has saved our clients tens of thousands of dollars.  

Check with your water company (or sewer co if that is billed separately) to see if they offer insurance.

That being said, get the inspection anyway!

You are right--you need to close the title in your LLC. Since your experience level (1st investment) is very limited, I'd speak with some title companies to get a feel for comfort level in working with them.

You'll be asking a bunch of questions (you should!) and want people who are responsive and have the time/patience to interact with you.

Also, search YouTube for what title companies do, how they doe it, and what are the costs in your state and locale.  

Keep investing and moving forward!

You have pages of good tips and advice above.  You'll come to your own conclusions, and take the action needed.

Just make sure to analyze this situation to understand it and you'll know how to avoid it going forward.

Investing in real estate: think long term.