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All Forum Posts by: Ryan Allen

Ryan Allen has started 3 posts and replied 30 times.

Post: Advice for New College Grad Looking To Set Up for Success

Ryan AllenPosted
  • Saratoga Springs, NY
  • Posts 30
  • Votes 14

@Daniel Renna I agree with your logic in this.

I would say though that keeping your fixed monthly outflow (22% to 401k, loan payments, living expenses, etc) lower and having a large emergency fund greatly reduces your risk. Having the 22% into your 401k limits you. But this will also help you automate your savings.

You can have higher fixed monthly outflows or less of an emergency fund if you have family who can easily lend you money if you were in a tight spot.

I echo the other posters who say to do the company match, then IRA, then the 401k again.

Pushing your savings % will help. I would also look at actively working hard on paying off your student loan debt depending on the interest rates. I’ve been influenced by Dave Ramsey and paid off mine. I also think It does lower your monthly fixed outflows and therefore decreases personal risk.

Post: Do you utilize traditional retirement investments?

Ryan AllenPosted
  • Saratoga Springs, NY
  • Posts 30
  • Votes 14

@Andrew Carlson

Yes - I am managing my investments based on my goals.

First, I put money into a 401(k) (it is a Roth), to get the immediate return from the company match.

I'm maxing out my Roth IRA. I'm looking at my income and tax brackets to determine whether I should contribute to traditional or Roth as the year progresses.

I am also saving money to invest in real estate. Lately as I have had enough cash and don’t see myself acquiring another property in the near future, I’ve been increasing my 401(k) contributions. I have a high savings ratio which allows me to pursue my current strategy. In addition, I want to try to take advantage of the tax-advantaged accounts to help me limit my tax liability.

Post: Does your tax professional HAVE to be a CPA?

Ryan AllenPosted
  • Saratoga Springs, NY
  • Posts 30
  • Votes 14

I have been using an Enrolled Agent and am satisfied with what I've been getting. I found him through google by searching in my town for tax prep. He had fantastic reviews (50+ 5 star reviews, nothing less than five stars). 

I would be reassured by the fact that they have real estate experience and was recommended by a real estate agent. I'd recommend you to understand the process of what they are doing and learn yourself about different strategies you can use to monitor and check that he has taken all options into consideration.

Post: Tenants Late on Rent

Ryan AllenPosted
  • Saratoga Springs, NY
  • Posts 30
  • Votes 14

Thanks all. Contacting an attorney

Post: Tenants Late on Rent

Ryan AllenPosted
  • Saratoga Springs, NY
  • Posts 30
  • Votes 14

I purchased a property in early August. It is a 3 family and I am currently house hacking it (Upstate NY). When I was under contract (was put under contract the last week of May) I requested all tenants be gone by closing. The previous owner moved new people in in July without a lease on a month to month basis and did not collect a security deposit. As we closed we were told there was a "miscommunication" and that the seller & seller agent thought I only wanted one of those two units in question empty. So I inherited the tenant at closing. 

The final walk through the day before closing revealed the empty unit had fleas in the basement. So I recovered money at closing to pay for those fleas to be out.

After I purchased the house I explained to them that I needed them to leave. I know in August that the date they had to be out by was 10/1. The two units that I am not living in are almost identical, except one has a finished basement with an extra finished bathroom down there. The inherited tenants (35ish yo couple) have very young kids and has a brother living with them (35yo). They provided me with a story and asked if they could move into the other, smaller unit.

I explained to them that there were fleas and I needed to get them out, but that they could move into the other unit after that.

Their rent was under market here, I told them if they picked up lawn care and shoveling only their driveway (not the other driveway), that I will write a lease and they need to pay a security deposit and not increase the rent (despite moving into a slightly smaller unit). They agreed. I offered they could pay the security deposit over the course of a few months to ease the burden. They agreed. 

Then they paid September's rent late, then they told me "we are switching sides on X day" and then never followed through. That cycle repeated numerous times before they moved. They are very nice, they kept their house very clean and left it in good condition. They provided another excuse when they paid September rent. I carefully reminded them that their new lease in effect 10/1 has a late fee and explained that it affects me and to please be aware and pay on time. This entire process they kept saying they "never pay rent late."

On 10/1 they told me that they would pay me on 10/5 because they get paid bi-weekly. They will include the late fee and pay the full amount. 10/5 comes and then today I followed up and they said they had an emergency, they apologize, they "NEVER pay rent late", they will have the money on Tuesday for me, then said they'd definitely have the money for me no later than Friday.

I told them they have until Tuesday, as they originally said, to pay me the full amount. They responded back with a sassy text about how things they agreed to (switching sides, cutting grass, shoveling snow) are ridiculous and should exempt them from a security deposit. 

At this point I understand that if I let them pay rent late like this, they will continue to pay rent late. So I want to go ahead and give them the 3 days notice to quit for.  I am looking for advice at how to do this, how do I deliver, is there a form online from the sheriff? I'm unsure where to begin this process.

Thank you.

Post: Inheriting Tenants with No Security Deposit (NY)

Ryan AllenPosted
  • Saratoga Springs, NY
  • Posts 30
  • Votes 14

I had known there was a tenant, I did not know they had just moved in 5 weeks prior. I thought it was the previous tenant. 

Thank you - I will let them know

Post: Inheriting Tenants with No Security Deposit (NY)

Ryan AllenPosted
  • Saratoga Springs, NY
  • Posts 30
  • Votes 14

I closed on my first property (an owner occupied triplex) earlier this month. During the closing process my realtor had notified the seller's realtor to give the current tenants notice that they had to leave.  We were provided with one lease and were told the other tenant currently had no lease and was month to month.

The house was under contract at the end of May. 1 Tenant left at the end of June and was replaced (without my realtor nor I knowing) and a new tenant had moved in on July 1. We had told the seller at the end of July to notify these tenants they had to leave. Given this much notice, the tenants would have to leave by 9/1.

At closing we found out that these are brand new tenants, they had just moved in, and that there is no lease and no security deposit. He said the tenants knew it was likely to come, but he did not tell them they had to leave. After closing I went to the property to start moving in. I met them and had told them the previous owner was suppose to tell them they had to leave by 9/1 and they'd have to leave. Now that it's August, I know they are allowed to stay until 10/1 because I gave them notice this month. 

Two questions - I'm working on a letter to send to them to put it all in writing. I know I should put them on a written lease (month to month) and know I should require a security deposit, how do I ask them for the security deposit and what if they say no? Since they have to be out by 10/1 and I'm telling them that, what would I do if they refuse to pay (or don't have the money)? 

Post: Solutions for Inadequate Heating

Ryan AllenPosted
  • Saratoga Springs, NY
  • Posts 30
  • Votes 14

@Michael Craig

To add onto some good ideas listed above, the older homes are more inefficient which only means there are more opportunities to increase the efficiency. I'd suggest getting an energy audit. Especially if the boiler is only a few years old. 

National Grid has this link featuring a no cost energy audit - can't hurt. 

In addition, here are some more resources about increasing energy efficiency in older homes.

https://energy.gov/public-services/homes/home-weat...

https://archive.epa.gov/region5/sustainable/web/ht... https://archive.epa.gov/region5/sustainable/web/pd...

Otherwise, good luck this weekend. It'll be cold.

Post: Upstate NY Property Analysis.

Ryan AllenPosted
  • Saratoga Springs, NY
  • Posts 30
  • Votes 14

All, sorry - I'm new to this forum and somehow couldn't navigate my way back here until now. Thank you for your responses.

I was interested in purchasing it, the location is great, however what threw my off was that the third unit above the garage was not legal. The listing agent didn't make clear what I'd need to do to get that approved and then I was sent away for work for a month. It is now under contract with someone else. Thank you for your responses, sorry my lack of response. 

Post: Upstate NY Property Analysis.

Ryan AllenPosted
  • Saratoga Springs, NY
  • Posts 30
  • Votes 14

I'm looking at acquiring my first property. I'm 24 and living with a friend currently for pretty cheap. I'm hoping to buy a multi family and house hack. I found this one property that is listed as a two unit house "with potential for a third studio above the garage." The main floor & upstairs are a 4 BR with 2 baths and the basement is a 2 BR with 1 bathroom. I took a look at the property, everything appears to be solid (I know it'll still need to pass inspection). The house itself is pretty awkward - lots of additions after it was built in 1991. There are odd rooms and unique construction. Upstairs, the doorways into the bedrooms have either no door (doorway is cut off by the slanted ceiling/ wall from an addition is too close) and use a shower rod, or a trimmed down door. It's in good condition, just outdated. Seemingly original carpeting and old bathroom & kitchen fixtures.  It is septic, had a boiler and two empty oil tanks, drilled well, but no separate meters in the house. 

Upon visiting the property, that "potential 3rd studio" is above a large 3 car garage. It was a fully functioning unit with a separate meter. I do not understand why it was listed as "potential." So I did some more digging. Originally when the house was listed in November of 2016 ( at $475,000), it said "legal 2 family" in MLS. The listing agency has changed. The price has fallen to $339,500 now. There were no building permits in county tax records nor was there any sign of any recent construction. It also appears this was a giant family complex. The owner of the property lost her husband a few years back, is very old, and had a lot of family living at the property so there is no rental history and the house is sitting empty. On the online tax records, it's zoned as Limited Commercial. Site Property Class: "210 - 1 Family Res." Which they listed it as a legal 2 family so logically should be "220 - 2 Family Res." But I can't figure out why that is still listed on here, what the ramifications are of this, why is that third unit listed as "potential," and most importantly - how to solve this problem.

The numbers look good. As house I am house hacking, I tried to make conservative estimates and I wouldn't mind living in the third unit paying a couple hundred bucks a month which the numbers below implies. Then save up and try to acquire another one. If I were to move out and rent the studio for $800/mo then it pumps out a good amount of cash each month.

Price: $340,000

Down Payment: $16,811

Loan Amount: $330,740 @ 3.875%

Potential Rental Income (for 2 units): $1800/mo for 4 BR & $1200/mo for 2 BR (conservative estimates) - $36000/ year

Vacancy: $4000

Gross Income: $32,000

Taxes: $6300

Insurance: $1000

PMI: $2000

Repairs & Maintenance: $4000

Other Misc. : ~$2000

Total Operating Expenses: $15,500

NOI: ~ $16,500

ADS: $18,832

Cash Flow before Taxes: -$2300

I'm thinking of putting this in the "too hard pile." The location is perfect, and there isn't much else on the market right now. It just seems a little unusual. Only in May did I pay off the last bit of debt I was in and I am nervous about taking on a large amount of debt like this because I enjoy not having any payments. I don't want to be talking myself out of this, nor rushing myself into this irrationally. I have a more precise excel spreadsheet set up with a much greater analysis but the numbers I provided were estimated from that to just give the basics (may not add up exactly due to rounding). 

Thank you for your time & thoughts,

Ryan