All Forum Posts by: Michael Craig

@Gerry Magrini

You are entitled to the amount the tenant over stayed. If rent is $1,000/month and there are 30 days in the month, then you are entitled to $33.33 for each day the tenant over stayed. This can be deducted from the security deposit. Be sure to include this deduction on the itemized security deposit return.

@Joshua Mellor

If you decide to raise the rent on your long term tenant just be sure to follow NYS laws:

As of July 2019, New York instituted clear guidelines as to how landlords may increase rent for rent increases of 5% over existing rent:. Tenants occupying for a year or having a lease of at least one year: 30 days' notice. Tenants occupying from one to two years and lease holders of one to two year leases: 60 days' notice. Tenants occupying more than two years or having leases of two years or more: 90 days' notice.

@Zac Banas

The longest part of the process is finding the right deal. It is hard to put a timeline on this step because like anything worth getting into, it shouldn't be rushed. 

Once an offer is accepted, expect a 4-5 week closing period (if traditional bank loans are to be utilized). This is where you will do your due diligence, process your mortgage, transfer the title, etc. 

The last comment I am going to make is a good real estate agent will walk you through every step of the way and connect you with the appropriate professionals (attorneys, mortgage broker, inspectors, etc.), especially on your first deal. I encourage all first time home buyers to really take the time to find the right RE agent.

@Thomas Garza

Not a very good idea, especially this time a year. Set the rent at market rate and go from there.

@Christopher Davis

@Christopher DavisCheck local laws but in NYS responsibility for shoveling snow is dependent on the agreement you enter into (and the type of rental you own). If the landlord takes responsibility, which is common for my area, then they have 24 hours from last snow fall to remove the snow. 

If you decide to take responsibility for snow removal, it is important that you remove the snow thoroughly because "partial" snow removal can be viewed as negligence if someone slips and falls (partial is in quotations because it is subjective).   

@Brandon V.

Thank you for bringing this up as I will need to demo a chimney soon.

Even though your contractor recommended taking down the chimney, you (the owner) are responsible to adhering to building code. 

Building the chimney's back up would be a waste. Taking the chimney's down to the basement is the correct solution (though costly). The good news is that taking the chimney's down can free up space in the apartments. 

Did the inspector give you a deadline to when this needs to be completed? Because your appliances are properly vented, there doesn't seem to be much urgency to have it done. Just be careful, now that this issue is in the know, any incidents will be identified as a willful violation.

I am currently house hacking in a live-in flip duplex. The downstairs unit is completely renovated and generating market level income. The upstairs unit, where I currently live, is being renovated. At the current renovation rate, I should have the upstairs unit completed by May 2020. 

I would like to take advantage of the low interests rates today, however, I am teetering at at the 80% LTV point with the current condition of the house. Do I:

-Refinance now out of my FHA into a conventional mortgage to take advantage of the better interest rates and risk paying mortgage insurance (which drops once I reach 80% LTV)

-Keep paying the high rates and refinance once the renovations are complete

-Utilize a third option 
 

@Jay Bob 

Keep in mind that under new NY legislation you are limited to a 5% rent increase.

@Carlos Alonso

It may take time to rent out. Try posting adds on Cragislist, using a for rent sign and ask the existing tenants if they need additional storage space or would like to rent a garage to store their vehicles/motorcycles.

@Carlos Alonso

Have you thought about renting out the garage to a tenant. An enclosed 1 car garage can rent for over $150/month in my market. 

What about sectioning it off and creating two 10'x10' storage units. My local storage facility charges $120/month for a 10'x10' climate controlled storage unit.

These options may not make as much as your idea of an ADU but at least they are legal and require little up front cost.