All Forum Posts by: Rob Bianco

@Theresa Harris I was semi-kidding about the laundry business. I have no idea. 

@Bill B. I had my property manager do exactly that; they had everyone turn off their water and saw the meter was reading 0 although I'm starting to question if I should just get a plumber involved who specializes in leaks

I bought a 4plex in December that has 1 water line so water is included into the rent and each building also has it's own coin operated laundry machines.

There are approximately 10 tenants in the 4plex and we've had a few turnovers the last couple months but water usage since June has nearly tripled. Unless one of my new tenants immediately started a laundry business I have no idea what's causing the increased water usage. I checked for water leaks and I had the city check for a meter leak and I couldn't find any culprit.

In January and February when we had full occupancy the 4plex used 17,000 Gallons each month however for June the building used nearly 35,000 Gallons. For July the building is on pace to hit similar numbers.

The building is 100 years old so I'm concerned about issues that maybe I didn't think about yet. What should I do?

@Jay Hinrichs Unfortunately, based on the current rents what would have taken me 13-15 years to recoup my expenses If I hold it as a rental upon completion will now take 25-30 years. It almost doesn't seem worth it unless I find myself in a position down the road where the cost of building is less of a burden.

If I sell I probably would only get $225k for the duplex once built (minus fees) but I'll have paid $275k so I sort of stand to lose an equal amount if not a little bit more

I bought a $35k lot in a great part of town that was zoned to build a duplex in Fall 2019. Fast forward 18 months and now lumber has tripled and the $150k I had budgeted to build won't be enough. I'll actually need $275k to get the project done and the guy I had hired walked off the project during the beginning of COVID and basically isn't coming back because he's so busy with more lucrative business.

At this point, I'm not sure if it's worth it to sell at a loss ($40k loss), or wait until lumber prices come back to 2018-2019 levels and just pay Property Tax on the land until then, or just spend the extra $100k to get the duplex built with a different builder and call it a day .... 

I had convinced myself last week to put it on MLS and sell but someone close to me said there's nothing else to buy right now and I'm better off just playing the long game until I can afford to build on the lot. In the meantime, I have saved enough to buy my next rental and would much rather invest in cash-flowing opportunities than sinking my money into this project that doesn't seem to be going anywhere but I figured I would ask the internet it's opinion... What do I do with this lot?

@Mike D'Arrigo

Well technically couldn’t I evict on the premise of non-renewing the lease as they are month-to-month?

I’m not saying I want evict anyone but if someone refused to leave that is my understanding of the law as it is today

@Filipe Pereira - I'm making a few upgrades to the laundry room and replacing the carpeting in the stairwells. Otherwise there honestly isn't really all that much to actually do. The previous landlord seriously under-rented the building. Some tenants are $200 under market and others are $400 under market

@Taylor L. - As I mentioned above I will be doing some upgrades around the building but there isn't a ton to do. The area has grown exponentially in popularity over the last few years and the previous owner simply didn't keep up. Would it be wise to just send out a non-renewal to tenants instead of insulting them by increasing their rent so high? I'm trying to dance around insulting people during today's circumstances which might lead them to refuse to leave and/or pay

I recently took ownership of a new apartment building in Kansas City. All the tenants are on month-to-month leases and rents are about 30% under market. I am sensitive to the notion that we're in a pandemic and as far as I know nobody in the building is struggling from COVID-19 circumstances yet the size of the monthly loan payments is going to force my hand to bring many of the units up to market rates.

I'm concerned I'm going to run into resistance (some units are $300-$400 under market) and potentially tenants who decide to just stop paying and use the COVID moratorium as an excuse.

There are 12 units total. I think I'm going to leave everything alone for a few months and then tackle them between April, May, and June (4 units per month). I'm hoping things might be a little better by then and Biden or the governor won't extend the moratorium past July 2021.

Does anyone have any thoughts?

I’m taking ownership of an 11-unit apartment complex in a revitalized part of town but the property needs upgrades and the starting budget is only enough to get the ball rolling. I am not sure where to prioritize my funds?

HVAC is super old but functions. Apartments are nice but could be nicer to get top dollar. Laundry Room still takes quarters but requires brand new machines for electronic payment compatibility. Lastly, the common areas are desperately old looking and need an update.

I have about $75k with about another $40k by the end of 2021 but am undecided on where to focus my efforts...

My first instinct is to first handle the common areas as it’s the first thing people see and then slowly get through about 6-7 units with upgrades and get higher paying tenants to create more profit and less stress with my monthly mortgage.

I figure HVAC I can handle as things die and laundry machines once the apartments are renovated since it’s a nice desire but not totally necessary.

Any advice?

I’m buying an old 12 unit building (built in 1920) and the current owner runs carpet throughout the staircase and other common areas. It’s gotten rather nasty over the years and I’m conflicted between just replacing the carpet or refinishing the wood underneath?

The current owner doesn’t strike me as lazy so I assume he chose carpet because it’s infinitely easier to maintain.

Also, on a unit this large am I smart to hire a cleaning person to come a couple times a month to vacuum and dust etc...or am I just throwing money into the wind at that point?