All Forum Posts by: Mark W.

I would proceed very cautiously when zoning is involved.  You mentioned you're in a suburb, but in the city proper once a multifamily has lost its rights (usually due to vacancy) it is nigh impossible to get them back.  I've recently combed through all the Zoning Board of Appeals documentation for the last couple of years (and I had done the same back in 2014) and in almost all cases the board denies requests to re-establish rights.  In my case I had a built-as triple zoned as a duplex, but the city wouldn't allow me to rezone it to a triplex.  In fact, I had to yank the 3rd floor kitchen, pull the 3rd gas meter, and "upgrade" the electrical to two separate service panels instead of 3.  It wasn't a bad outcome though, because I was able to add bedrooms and square footage to the 2nd floor apartment...and charge a commensurate rent.

I mention all that to suggest you should check with the town's zoning board and see if you can determine the likelihood of getting the property rezoned.  Have they granted the same relief to other similar properties recently?  What are reasons why they wouldn't?  Again, I would proceed cautiously because the last thing you want to be stuck with is an illegal duplex that loses money.

If you can solve that problem and go forward, I would remove the pool.  Pools require almost daily maintenance in the summer, and good luck getting tenants to agree on shared responsibility for it!  For a rental it doesn't add value, it adds liability...significant liability IMO.

There's also county taxes.  You can look these up here: https://www.monroecounty.gov/etc/rp/

Hey Mark, who are you currently using?  I've been with Liberty Mutual for awhile and one thing I will say is that their customer service is pretty good.  I have a local agent I reach out to when I need and he moves pretty fast.  It seems like premiums increase 3-5% every year though.

You can mitigate your concerns about population and crime rates by investing in better neighborhoods.  See South Wedge and some areas of the 19th Ward.  I haven't looked much into it, but I've heard the Merchants/Culver area is picking up steam.

I'm guessing you're looking in Rochester neighborhoods where a $50K duplex or $25K single is the common offering.  As an out of state (and out of country) investor, I would not recommend this.   If you are looking to invest in the low-end markets, expect low-end tenants.  Which means non-payment of rent, frequent damages and repairs, crime, low and declining rents, and headache after headache.  Your properties will get beat on and it will show.  Good PM companies to manage these types of properties are tough to find.

The prices of these properties are so low because they reflect the condition of the area, type of tenants, and the quality of surrounding housing.  I would only consider these if you are local, have experience (with rehabbing and the active management of tenants), and have cajones of steel.  Emphasis on the latter.

Yeah that is my next step.  To run numbers.  Your suggestion of doubling the interest rates is a good one!

Selling is not in the cards though, unless of course my cash flow is totally wrecked.  I'll need to know if that's a possibility.

Wasn't sure if this was a common loan type, this is the first I've heard of it.

I've got a few options on the table I'm evaluating for pulling out cash via refi. One option offered to me is a portfolio loan where I can roll multiple properties into a single loan. It's a 25 year amortization, 3 year call, 4.75%. 80% LTV. As I understand it, a 3 year call means the bank adjusts the rate every 3 years (up, not down I presume.)

I'm not crazy about the rate changing, but I dig the terms. My other option is to refi each property into their own mortgage with a fixed 4.5% rate, 75% LTV.

What are your thoughts on the 3 year call portfolio loan?  OK for holds?  I'll be taking the cash out and pumping it back into additional rentals.

@Shannon Sadik I've used McManus Painting for touchups.  Did a nice job, paint matched exactly, estimate was in line with others.  (Can't remember if he was the cheapest or not...but it was close I am sure.)

@Todd Ryan If you are looking to invest in the city of Rochester proper, you face an uphill climb in getting any SFR rezoned to multifamily. I dare say it will be just about impossible. Head on over to the Zoning Board of Appeals site and start browsing the cases. You'll see a bunch of duplexes that have lost zoning rights due to long term vacancy and once those rights are lost the city doesn't like to give them back. They would prefer the house remain a SFR even if it means it sits and rots.

That also goes for rezoning a double as a triple, or a triple as a quad.  In pretty much every case I've seen the Zoning Board denies the zoning appeal.

I have a 3rd floor apartment where one of the bedrooms has a hardboard (!) ceiling that's pillowed from a previous roof leak.  (Roof has now been replaced.)  I believe the best way to rectify that is to run furring strips (might need to use 2x2s) and then either drywall or ceiling tile.  Leaning towards drywall.

The walls are hardboard too.  I'd prefer not to drywall the whole room, but I have a section of hardboard that's separated due to the weight of the roof debris that dropped into the attic.  (Pretty sure this is not recent water damage.)  Not sure what the best path here is.  Remove the section of hardboard and replace this section with drywall?  Or just cover it?  If I cover it with drywall I'll need to run furring strips, just not sure how I'm going to make the edge look good?  I'll take any ideas!

Absolutely.  There is a ton of property in Rochester to go around.  The "big time" investors can't buy it all.  And what might work for me might not work for the other guy.  And vice versa.

Everybody starts somewhere.  You can land your first property with a low first time homebuyer down payment so I believe the barrier to entry is low.  After that, capital does become an issue.  There are a number of solutions to that problem.  Live frugally and save, take on a partner, start up a side business, work full time and pour your investing income back into your business.