All Forum Posts by: Nicholas W.

Congratulations! One thing I love about BiggerPockets is being able to share successes with people who really understand them. Sometimes I feel my friends and family really understand how important seemingly irrelevant things are.

Not trying to be a buzzkill but I think you need to do a lot of research right now. Based on your question I think you're a long way from setting up an LLC at this point.

I agree with @Jeff B. to not include a washer and dryer unless all other similar properties have them. 

You can always put in the lease that the washer and dryer are provided for convenience only and will not be repaired or replaced by landlord. There is risk in that though because they could say they could sell them off, tell you that they broke so they replaced them with their own units that they will certainly take with them when they leave. Now you're stuck replacing them again.

Do you know anyone with a contracting business of any kind? What I would likely do would find a way to work it out with a contractor that he "bids" the job for $5k. He buys the $3k in materials (as he would need the write off from a tax stand point since the $5k will be considered income.) You perform all the work as you planned and then he bills you the bank the $5k and takes a bit off the top to cover his taxes and trouble and gives you the rest. I'd think he'd need $750-1000 to make it work on his end since he will have to pay tax on $2k of profit. It would be a really messy deal but it is a potential solution.

I've heard of it, unless I'm mistaken it is nothing more than refinancing and maxing out a HELOC on properties as often as you possibly can. The trouble is getting a bank to loan you money on that equity. Generally with rental properties they aren't too keen on going above 75-80% LTV and it's pretty difficult to get one to go as high as 90% let alone 100%.

I know you have since moved forward with PM but thought I'd reference your question anyway.

In my basement rec room I installed electric baseboard heaters with a wall thermostat. The material cost was only $300 but I can't comment on installation cost because it would depend on the layout and accessibility. Electric heat is terribly inefficient from a cost stand point but since we only use the rec room occasionally it works great. I also installed a wood burning fire place that can be used but that isn't very practical to retrofit. Now I'm not saying you should install that solely because this tenant complained but I do feel that some sort of supplemental heat is necessary in any finished basement space. Ducting in air from the furnace does help but since the thermostat is usually on the main floor the basement is still substantially colder than the thermostat setting.

If it were me I would do it right and have them do a complete sanding and re-coat. You should get most of that back in an increased sale price or quicker sale as most people want a move in ready house. 

My vote is to get her out one way or another. If you can convince the seller to do it, all the better. 

If that is how she keeps the place when she knows her new landlord is coming by for an inspection imagine how bad it normally is. 

No

Personally, I would just move on. I wouldn't give her a 3 month lease, just not worth it in my opinion. Technically she is responsible for the days that the lease was valid but the unit was empty but you are responsible to diligently try to fill the unit and mitigate her losses as much as possible.