All Forum Posts by: Wesley W.

 The banks in my neck of the woods typically want 25% down with 6 months of reserves for investment properties, so I guess it's all relative.  I wish I had this problem.

Good advice given nonetheless in the posts above.

I pay the water bills for two reasons:

(1) I own multi-family properties and they are not separately metered.

(2) It is local custom here for landlords to pay for water.  Even if I were to incur the expense to separately meter each unit, I would be at a competitive disadvantage to other landlords who had it "included" in the rental price based on a tenant's perception when they shopped for vacant apartments.

If @Karen Margrave is such an advocate of these ramps, perhaps she can provide housing to your tenants.  Sounds like a win-win!  ;)

I agree with what was already stated.

I would also just add if we are not living in inflationary times, we are at least living in times of "price creep" here in NY. EVERY YEAR your insurance, taxes, and maintenance expenses will go up, sometimes by a significant amount. You can set your watch by it. Over time, this will seriously erode your cash flow and reduce your ROI if you do not "mind the spread" by increasing rates accordingly. You are not being greedy, merely passing along those increases to your end user (the tenant).

Everyone in NYS, including tenants, expect their expenses to increase year over year.

In my short tenure as a RE investor, inherited tenants have been my biggest "X factor" when it comes to trying to stabilize a property with regards to cash flow and return.

My advice to you would be professional but firm with them, as the initial interactions will set the perception in their minds whether you are "fly by night" pushover landlord, or someone who is running a business.  Did they once have a security deposit and it was used up with late fees, etc.?  I think their response to your request for a security deposit will speak volumes as to how they are as a tenant.

I would definitely get a security deposit and as a courtesy, incrementally increase their rent over time (you decide an appropriate pace) until it reaches what you think is fair market rent based on the unit's condition.  They will shop around and realize you are still giving them a fair price.

I can understand your need to be "fair" but you also have to protect your investment.  Be careful about setting precedents that are unhealthy for your business relationship with your tenants.

Good luck!

Absolutely  blame your insurance carrier.

I have a clause in my lease that forbids tenants from doing anything that would cause my insurance to be cancelled or would cause an increase in my insurance premiums.   That would seem to cover most of these kinds of issues. 

I also have a clause that forbids any activity that is against City ordinance or code.  In my market, that would cover this situation as well.

An ironclad lease is worth its weight in gold. 

Good luck! 

Absolutely  blame your insurance carrier.

I have a clause in my lease that forbids tenants from doing anything that would cause my insurance to be cancelled or would cause an increase in my insurance premiums.   That would seem to cover most of these kinds of issues. 

I also have a clause that forbids any activity that us against City ordinance or code.  In my market, that would cover this situation as well.

An ironclad lease is worth its weight in gold. 

Good luck! 

Since it's a line of credit, why not just park the money there until a deal comes along and evaluate then? Essentially, your HELOC is liquid as long as you are still in the draw period, and you are saving yourself some interest payments at a rate far above what you would get as "cash" in the bank.

@Patrick Liska

Yeah she signed such an agreement, but I think the blinds were down given the apartment was vacant.

@Glenn Banks

I'm going to try and source the manufacturer - thanks for the tip!

@Patrick Liska

I took copious pics, but they are all with the blinds down. :(

Lesson learned.