All Forum Posts by: Michael Pilolla

*** To Buy Triplex OR Not?*** 

Hi BiggerPockets Peeps,

It's been a while since I've reached out. Hoping to get the incredible help I've usually gotten from this incredibly awesome community!

There’s a triplex on the market for $450K that probably needs $30-50K worth of cosmetic work at most. It’s mostly good to go but I still need to do an inspection to make sure there are no major issues. Here’s some quick and dirty math…

At a $450,000 Purchase price, 20% Down ($90k) at 7% I’m looking at a monthly payment of about $2,889 for the mortgage. Current Rents are pulling in $2775 monthly ($775+$750+$1250) So with 10% rent hikes on the two low units this year that moves up to $852+$800+$1250 = $2902. With room to grow the cash flow year over year till I hit market rents. The average rents are about $1200 in this area. Throw in taxes, insurance, maintenance, and capital improvements, it might not be the deal of the century but I think it's got legs.

I could pay cash for it but won’t of course. That said, I’m trying to find the right balance. I don’t want to buy it just to buy it but it seems like a good deal. I would be incredibly thankful for any help and guidance on how to proceed - if at all?

Let me know if there's any other info that would be helpful.

Very best,

Michael

I love this community! You all rock! Thank you, @Bob Okenwa @Theresa Harris @Rosa Regier very much for your insight and feedback!!!

Best,

Michael

Hi All,

I have a tenant who says her daughter, her daughter's husband, their 3 small children, and 2 small dogs need a place to stay while looking to buy a home. She says it may be 1 to 2 months. Can I legally charge them additional rent and deposit? EG - $500 refundable dog deposit for each dog and an extra $500/month for the family to stay at the house?

Thanks in advance for everyone's help!

Best,

Michael

Hi BiggerPockets Peeps,

I recently sent my previous tenant his deposit back after deducting a substantial amount for damage, repairs, and an excessive amount of cleaning the house needed. I sent the check on 8/25/2022 but it hasn't been deposited/cashed yet. I'm guessing he's pissed and looking into legal means to recover the approximately $1,000 of the $1,700 he didn't get back. 

My question is... does he have a limited amount of time to dispute the deductions before he has no legal means. EG, if after 30 days he hasn't responded he can't pursue legal means - basically a statute of limitations.

Property is in Oregon.

Thank you in advance!

Michael

@Sergey A. Petrov

The mother said her daughter can stay living where she currently is. The parents really like the property. I just want to make sure the daughter doesn't worm her way in by staying only for a night or two and then it turns into a week here and a week there and before you know it she's living there. 

The couple do qualify on their own.

I assume I can put in the lease agreement that if someone stays for any length beyond XX days (14 days for example) that we need to be notified in advance or the terms of the lease will be considered broken and tenants subject to eviction? Of course, nobody can smoke in or anywhere on the property whether they're visiting for 1 night or 10 day!

@Sergey A. Petrov @Shiela R. thank you so much for the insight and help. I told them we were moving on. The 3 people involved are an elderly couple and their daughter. The daughter is the smoker. The mom called after I told them we were moving on and asked if her and her husband can rent it without their daughter. 

Question: How can I rent to them and make sure the daughter doesn't end up moving in behind our backs? Can I write in the lease agreement that no one is allowed to stay there for more than 3 days at a time or something like that? 

Thank you again! This is why I love BiggerPockets!!! :)

I knew that one of the 3 applicants was a smoker. I told the family via email that the property was NON-smoking and that there was to be no smoking on the property inside or outside - leaving them to smoke out in the street. They asked if they could have a designated smoking spot that wasn't out in the street. I don't trust they'll follow the rules. Can I tell them we're no longer offering the property to them to rent and refund the application fees? I don't want to get sued for discrimination of some sort. This is in Oregon btw.

Thank you for your answers in advance!

Michael

Hey Kristin,

I highly recommend checking out Jesse Brown - he's a part of the BiggerPockets community! Super nice guy, incredibly helpful, and he knows the area like the back of his hand - which is great because while I lived in Albany at one time, I now live in California and having him as eyes-and-ears up there has been hugely beneficial. 

Best!

Hello Hello BP Peeps,

As I get my real estate investing going, I need to know, do I create an LLC or not? I live in California but buy and rent in Oregon. Would I create an LLC in Oregon or Cali? I plan on buying multiple properties over the next few years so I just want to be sure I'm doing the right thing. Also, does it make sense to work with a CPA who specializes in real estate investing in person or is it ok if everything is virtual?

Thanks in advance for any and all help!

Hi @Basit Siddiqi

Thank you so much for clarifying. Honestly, I was a bit confused about how it worked. I didn't understand why advertising a property early would make a difference. Thanks for your insight and response. It's very much appreciated!

Best,