All Forum Posts by: Mike McCarthy

@Davis Stoner when I had a property with an oil tank, I filled the tank before move-in, then had an auto delivery contract with an oil company in my name. I estimated the oil bill ($50 Oct, $100 Nov, $200 Dec/Jan, etc) and they paid on that schedule. At the end of the heating season (or if they moved out), the tank would be re-filled and we would reconcile the difference. I estimated with the goal of them overpaying by about $50, then at the end of the season, I’d write them a check for the overage.

It was a bit of a pain, but worthwhile since it made it easier for the tenant. They didn’t have to worry about running out of oil, I didn’t have to worry about the service calls if they did, and they weren’t stuck with a big bill every other month based on deliveries.

@John Pattersonmy understanding is that the tenant is paying, and they are being subsidized.

(I haven’t handled that myself specifically, but that’s what I’ve been told)

@Yuka Fujii with more info, the K&T work might not be so bad. A lot of houses have had the receptacles updated since they are easier to run, but re-running overhead lights are a pain and require some wall repair afterward.

I’ve done a handful of houses where there were 2-3 remaining K&T circuits. The replacement of those might only be $2K, but I usually come in around $5 because I also bring the kitchen/baths up to code, and add a few other items.

As others have said, work with the seller and figure out why you need to make it a good deal for you. If the seller will work with that, excellent - if not, then move on. As someone said, any house is a great deal at the right price.

Replacing the K&T is a decent project. $10K sounds a bit on the high side, but possible depending on how many circuits need to be updated. You’ll also have to follow up with some wall repairs as the electrician will definitely make some holes to run new cables. And I’d definitely recommend replacing/updating. Some insurance companies won’t insure a house with K&T.

In my opinion, it’s not a huge issue, but it is a cost. I would negotiate with the seller and get some kind of credit.

The furnace is another decent problem. Could be something simple, but also could be more. It’s hard to tell for what the inspector said.

The plumbing also could go either way. Hopefully just one small leak - which is probably a few hundred $$ to fix. But if it froze or something like that... it could be more than just that one leak.

I’d definitely pick a number that you’re comfortable with and ask for a credit. Worst the seller can say is no.

@Carolyn Fuller for what it’s worth, I’ve been a Cozy user for 5 years and was just transitioned this week to apartments.com.

So far, I’m impressed. Good communication, easy transition, everything is there. Will of course see what happens come May 1st, but so far I’m happy enough to keep things status quo.

Not to derail the thread, but most/many landlord policies have a clause around 60-days of non leased. The last policy I had covered in full for 60-days? Then the policy limits droopier to 60% (I think, doing this from memory)

So a minor reno seems like it would be covered during that time. Obviously, if you’re doing a full gut, a builders risk policy likely makes sense.

What’s the real difference and where is the line drawn between just using a landlord policy for some ‘cleanup’ vs a builders risk policy?

@Stephen Beckwith definitely reach out to a local lawyer. The folks here will be able to help, but you’ll want a lawyer to deal with the notification and eviction process to make sure it goes as well as it can. It’s not something you want to DIY at least the first time or two.

They may have other suggestions if there are warrants or anything for this individual. Might be worth looking into.

@David Park are you referring to a separate company to manage your properties (still your properties, just nit owned by the PM company)? Or are you planning on managing the properties of others?

I don’t have a specific answer either way, but I’m sure the answer changes either way.

@David C. I use Allstate and they seem to have a ‘don’t ask don’t tell’ policy when it comes to fuses, knob and tube wiring, etc. they’ll do an exterior inspection, but I’ve never had them do an interior inspection.

I’m not sure how they treat properties owned by LLCs, but it might me worth a call.

@Karl Kuczmera talk to a local attorney. Many states have enforced the moratorium for non-payment, but evictions can still continue for other reasons. (Don’t know about MI)

You may be able to proceed with eviction for not allowing entry with appropriate notice. But it will be very locale dependent.