All Forum Posts by: George Paiva

Usually a quick call or text works, even an email. I don't send letters for reminders because they don't all open mail right away. I usually call or email on the third.

Was there faulty work? Or is this just an issue with pulling a permit? Maybe try getting a few other contractors to look at it. I know that contractors hate fixing other contractors mistake so be ready to pay a little more on the fix.

Also document as much as possible and keep for your records in case the town or building department come knocking.

At least you are doing the right thing by pulling the permit yourself. This is what I usually do to keep control and then just subcontract the work out myself.

Hi Aaron, I acquired a 3 family in Feb 2012 with one oil burning furnance that provided heat and hot water to tenants at Landlords cost. In addition they were not zoned so basically the previous owner on the first floor controlled the temperature. We replaced that with separate Natural Gas boilers in time for this winter.

The oil furnance was located in the basement and fed hot water to each floor / tenant in one continuous loop that circled the basement with offshoots to each radiator depending where they were located. These were cast iron radiators.

After much discussion with HVAC and Plumbers I decided on installing 3 separate metered natural gas boilers. They would be connected to the already Natural Gas meters located on the property. We eliminated the continuous one loop and installed 3 loops, one for each tenant. The first floor received all new baseboard since we renovated that unit fully. The second and third floors, we tapped into the existing piping and cast iron radiators located in their units from the basement.

We eliminated as much cast iron and copper we could from the basement and replaced it with Trac pipe for the gas supply and PEX for all the supply and return lines.

I spent about $9-10k in just material and about ~$3k in labor. I also redid all the plumbing in the basement so hard to nail down the exact labor cost. I kept my boilers in the basement due to space constraints for the 2nd and 3rd floor. I also kept the existing cast iron radiators as I didn't want to intrude too much on the tenants currently living there.

My goal was to get them off me paying for heat and hot water as it was a $3k plus cost every year to supply oil and it wasn't even zoned. This has so far worked out great. No issues at all with heat and tenants are happy that they can control and have a efficient heat source.

If you have the space I would look into putting the heat units in the apartments. Not sure what rebate or program you have but you can look into the direct vent inline heat and hot water systems in one that are out there. They are pricey and may cost you a bit upfront. By providing a separate heat source to each tenant you will make out in the end.

Of course if you wanted to do this on the cheap you can go all electric baseboard and eliminate the steam. Its much cheaper to install electric depending if your panel can handle it. BUT tenants hate having electric heat here in the Northeast because the cost falls on them. So its up to you. If your properties are in decent b-class neighborhoods then go for Natural Gas and pay the higher upfront costs because it will cost the tenant less to Heat. If you have these properties in less desirable locations, in my opinion electric baseboard in each room with a thermostat for each room works best. Especially when in eviction court the tenant complains of no heat when all they have to do is turn the dial. Also much easier to maintain and replace.

If you stick to the natural gas heat then it will depend on your property layout to understand if Forced Air, Water or Steam is the best option. You should consult a HVAC person on this.

Feel free to PM me with questions, Regards George

Yes have the electrician connect it to one switch that turns on the lighting and the fan to the bathrooom. This way you know it does its job and mold/moisture will be at minimum. Also make sure you get the right size fan for the room. Good luck.

I've been using the typical broan ones without issues. I get the regular fan type. No lighting or Quiet ones. Just try to keep it simple and functional.

And yes make sure they exhaust outside. I have yet to find one connected correctly ;)

As others indicated it depends on the market. Our rentals are all located in blue collar markets. Usually between tenants we thoroughly clean the unit, paint ceilings and walls, replace all mini blinds, electrical plates and outlets/switches. If floors need replacing we do laminate/tile in bath/kitchen. We strive to offer a clean and better looking unit compared to the competition and we rent them competitively as well. Everything is done with a cost/benefit approach and to minimize repair and service calls. We don't put granite or stainless steel in any apartment as its just a waste of money. Like a lot of my friends say "Paint and Carpets"

For my properties I use a mix of what was mentioned above. I use a Business LLC Checking account for all repairs, Draw about 10% for my mgmt duties then keep the rest for repairs and eventual purchase for additional property.

I also project out detailed annual cashflow and do what Joel mentioned above as far as lifecycle of equipment or repairs per property. For example, if I know a new roof is needed in 1-3yrs I plan on keeping reserves in the business checking acct to satisfy that till that time comes.

The key is having it all planned out and what the exit strategy with each property. I like to buy rehab multi's which I hold long term. I eventually get them updated to the point of a turn-key operation by the time they are ready to be unloaded. Then I 1031 for the next level.

If this was your first deal and you don't have a lot of assets in your name then by all means buy it in personal name since you will get much more favorable finance terms and insurance costs.

But if you were thinking of accumilating many properties and if you didn't want to lose your personal house in case of liabililty then go for the LLC.

In CT, its well worth the llc cost if you have multiple properties and own your own primary home. Many even push to setup a separate LLC for each property to insulate each.

I believe it all depends on what you're trying to achieve. Flip, RTO, or Buy & Hold.

Personally I focus on Population Trends from the Census and Employment Trends from Bureau of Labor with support with 3rd party analysis. I cross reference them and narrow down to a select few states and cities.

Like others mentioned once you narrow down to a few locations you need to study all aspects of that market to fully understand the in's and out's.

This might seem a bit overwhelming and why most just chose to invest in their backyard.