All Forum Posts by: Antonio J. Mendoza

@John Morgan I am leaning towards that with the rates being so low. I hope that I can talk to the banks here this week and see what they're going to offer me. I apologize for any typos. Lol!

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Hello, I haven't been on here in a long time. I just recently finished with a studio renovation here in Honolulu. I don't have a mortgage on this studio property. My initial plan is to get this studio appraised, and look into either getting a HELOC, or a cash out refi. I am using this one to be the foundation in order to be able to leverage and continue to grow my portfolio. Any information will be appreciated.

If there are local investors, I would love to connect. Hope everyone is well.

Respectfully,

Tony

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Here's another question. Are there any recommended and reputable contractors and full service property managers that service the Alexandria, Anderson, and Muncie areas in Indiana? I need help in getting 5 properties rent ready and cash flowing. I am currently deployed and need help from a rock star that’s in those areas. Thanks.

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Originally posted by @Todd Burton:

@Antonio J. Mendoza

A couple of things to note.

1. If the current leases do not include the tenant paying for their utilities you cannot make them do so during the current lease term. You can ask if they will agree to amend the lease to include that cost but good luck with that. If they will not agree to the amendment then you'll have to wait to revise the lease to include that cost if/when they renew.

2. Make sure the property is specifically identified in the tax records as a Triplex. If it is not, you may get stuck with a property that is not legally a Triplex and then you would have to use it as recorded (SFH?) and apply for the property to be revised as a Triplex. Either would not be good. It's much easier just to verify before purchasing.

Todd,

Yes, I understand everything that you stated.I really appreciate the information. Everything from what I am understanding is being honored from the previous owner. I am making sure to cover myself in the future.Thank you!!!

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Originally posted by @Scott P.:

I have 2 lease forms, each drawn up by a different attorney in Indiana. Neither one has been tested in court but I assume they are legal/good.

I think you're asking if Indiana requires Tenants to pay for certain items and Owners to pay for certain items and if it's mandated here for Owner's to cover certain items in general and if those answers vary for SFH and Multi. Those good questions. I'm surprised at myself for never asking them of a lawyer, which is what you should probably do in order to get the answers. There are probably State laws that apply as well as local ordinances in some cities.

Although I'm not 100% sure, I THINK a landlord is required to keep the rental "habitable" which I think includes things like hot water and a heating system but not things like lawn care or air conditioning. My properties have always been well kept. So I've never had to look into these issues.

You can definitely have the tenants responsible for paying all utilities in Indiana; however, I believe the landlord/property owner is responsible for the sewer bill if the tenant does not pay it. My first choice is ALWAYS separately metered utilities for each unit. If a home was renovated from a SFR into a Triplex, it may or may not have been converted into separate meters for 3 units. To make a conversion like that requires coordination and approvals from all the utility companies in question and probably even the post office for mail delivery. The utility companies likely include electricity, natural gas, water, and sewer. I have not done a conversion like that but I suspect it is complicated and may not even be possible in some jurisdictions.

I would probably not buy a Triplex with one meter(s) and split utilities. I haven't included any utilities in my rents i.e. the tenants have always I prefer separately metered properties. YMMV.

If this info is informative, plse give me a "vote." If you'd like to PM me and tell me where the property is, I'll give you more info about it or the area if I can. (I won't pursue the deal or tell others about it.)

Good luck!

Scott,

I am currently looking into all of that. There’s a property manager in place with the current owner. I am looking into all of these things that’s needed right now. Yes, I am asking that because with the properties that I am looking into, especially the triplex I am assuming it’s metered as a Single Family converted to the Triplex. From what I am understanding the owner pays all the utilities on that property and seems as if it wouldn’t be cash flowing. The only thing that the tenant(s) are paying for are renters insurance and internet.

I know that I am responsible to provide a habitable place to stay. Being that there’s different laws to different states, I am asking to see what’s supposed to be covered as an owner. I don’t want to be going against any laws and will have it covered in the lease to the tenant. If there’s a way to cover myself and to make sure that the tenant(s) are paying for their use of utilities, then that’s what needs to change over to them. It’s a unique thing when it comes to different properties and their situations.

I talked with the contractor that was recommended to look at the properties. I am going to see what information I can get from him in order to get a better understanding about this triplex. I guess I will see what he says on Monday. If there’s a possibility to convert everything over, I will see about that with the contractor. I have already sent the current property manager an email about how they’re figuring out all of the expenses for this property. I totally agree with you that tenants should pay for their own utilities. There’s no reason where they cannot cover these expenses themselves. Thank you again for your thoughts!

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Originally posted by @Douglas Montgomery:

I own SFH's in Indiana so I can't really speak about Multi but I would assume it was cost prohibitive when they converted the house to multi. My tenants all pay their own utilities. I do cover lawn care and snow removal only because I want to keep the yards nice and a family member owns a lawn care company. I would think you could possibly use the RUBS system in the instance of the single metered house, but you would have to do checking whether you could;d do it legally.

Douglas,

Thank you. I am going to look into the RUBS. I will double check to make sure I am not doing anything illegally. I also have to look into the lawn care portion. I have to get in contact with the current property manager to get further info about all of this. I have a lot of information I am trying to get about this property to make sure I have a smooth transition.

Also, how are you receiving the rents? I am thinking of having the property manager going to one of the rental income sites. If you are doing this, what’s your experience?

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Hello everyone. I am researching for this information also on my own. I am starting out in RE Investing and reaching out for some help in looking for about these questions I have.

For rental properties in Indiana for Single Family and Multi-Family homes, where can I find the information stated that Tenants pay for certain items and Owners pay for certain items?

Is it mandated for the Owner to cover certain items in general?

Does it depend on the type of structure on the property?

Wouldn't the tenant get all the utilities under their name since they're using the services, especially when it comes down to a SFH?

For Multi-Family properties, depending on if the property has been separately metered for all utilities or not, wouldn't it make sense to have the property metered separately if the home was constructed from being a SFH to a Triplex?

I just need to be pointed in the right direction when it comes to this. I spoke to a contractor to go look at the Triplex. I understand that it’s on one meter. The previous owners were paying all the utilities for Electric, Property Taxes, Sewer, Water, Lawn care, Trash Pick Up. Tenants only pay for Cable and Renters Insurance.

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@Frank Patalano I am actually doing all that you have recommended since I got out here. Thank you! I will definitely reach out!

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Being deployed. Looking to hit the ground running after getting back to the States.

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All Forum Posts by: Antonio J. Mendoza

Antonio J. Mendoza has started 4 posts and replied 15 times.

Post: HELOC or Cash Our Refi

Post: HELOC or Cash Our Refi

Post: HELOC or Cash Our Refi

Post: Questions about Investment Properties in Indiana

Post: Questions about Investment Properties in Indiana

Post: Questions about Investment Properties in Indiana

Post: Questions about Investment Properties in Indiana

Post: Questions about Investment Properties in Indiana

Post: So what's holding you back?

Post: So what's holding you back?