All Forum Posts by: Christos Philippou

Hey everybody... Hope I am posting in the right place here.

I closed on a property a little while ago (#2) and still learning all the ins and outs of real estate as I go. I have a quick question that should be able to be answered rather quickly, as it might be a beginner's question.

The tax assessment is obviously very low on this property as it isn't finished. There is nothing but studs and some rotted floors inside. We are completely renovating this historic building to 2 separate units. So new floors, new appliances, putting up walls, etc. Now my question is about the assessment for tax purposes.

Will the city know to automatically come out and reassess the property once it's finished? Do I have to "ask" them to come out and do this? The reason I ask is because once it's finished, it's value will more than likely double or triple, therefore drastically increasing taxes. Any insight on what to expect would be awesome. Thanks!

@Nicholas Weckstein I just got my primary residence mortgage with WF and was incredibly satisfied and happy with them. I was at 4% flat with a loan of $102k. I believe my closing costs for here in DE were maybe $7-8k. 

I also could be wrong, but they no longer use HUD-1s. They use the Closing Document. I believe this switched at the end of last year. However, you will get "My Loan Tracker" with WF which will have all of your documents you need and numbers and estimates of closing costs.

When I was going through the mortgage process with a different lender before WF, the underwriter actually trolled the internet for my posts and found stuff here on the forums. I would be very careful about what your intentions are with occupying vs. not occupying because they will find it.

@Nick V. for what it's worth, my wife is on the title/deed for our primary residence and the loan is only in my name.

Hey @Matt Faix... I think @Kaycee Miller nailed it. I think that allowing a tenant some flexibility like that is a huge plus. If you have great relationships with your tenants, they are more inclined to renew their lease and take care of their place FOR you. I try my hardest to maintain positive relationships with my tenants so they like me. I don't want to cause any problems, because who likes dealing with that.

Raising rents for a small garden I think is crazy. It's a garden.... they aren't trying to build a deck and patio out back.. it's soil and seeds. Post some pictures once it's out there. I'm sure it'll look nice

Ya, I certainly feel you @Laurence V. ... All part of the job title I guess haha. I think what others have mentioned before, if you have to live by your lease. I've edited my lease a couple times since starting out to beef it up and make sure I am good; learning from previous errors and lessons. Good luck!

Whats up @Laurence V. ! Welcome... I think what @Account Closed said is pretty accurate. I try and be as positive and on good relations as possible with my tenants, even if that means a day or two late like you've said. My ultimate goal as a landlord is to build equity through rent payments with some positive cash flow. If that means a tenant is going to be a day or two late every now and then, but generally great tenants, I can live with it. I am small time as well, two properties, so take what I say with a grain of salt.

Once you start getting really tough and hard and gung-ho with a tenant who is already pissed off, I can only imagine it going downhill. Sure, you can demand the extra money all day, but she probably won't give it up. What benefit comes from fighting her to the point where she is so pissed, she says screw it and starts paying late all the time, or worse, trashing the place. I've just never seen the headache and cost of taking a tenant to court worth the extra few bucks in "late fees"

Cheers!

I was excited to click on this thread to give some good advice, then realized you live in NYC haha. I was going to tell you that for a beginner, the best market is the area in which you live. You know your surroundings best, you know the good neighborhoods and the ones to avoid. Once you leave that comfort zone, it requires an extraordinary amount of work to stay current and knowledgable about your business.

In Wilmington, DE where I am investing, it's seriously block by block. If somebody from out of state invested in Wilmington, they would probably struggle quite a bit, unless they have somebody who lives here and tells them exactly where to look.

Since you're living in NYC, we all know you can't buy anything for less than $5m haha. Make sure you're doing an extensive amount of research on areas and neighborhoods, work with a local investor or agent, and enjoy! Dive in.

Good luck and welcome (=

What @Penny Clark said was pretty spot on with what I would say too. Meeting the dog to me would be a big thing to keep in mind. If you are comfortable with meeting a new dog, I would just say go for it. 

I would highly recommend when you meet the dog, to watch from a short distance with how the dog interacts with the owner. Does the dog pull, does the dog lunge, does the dog bark at strangers walking by? Does the dog listen, does the dog sit on command, etc. If the dog is well trained, I wouldn't see an issue with it.

I am currently renting an apt now while I wait for my primary residence to finish up minor repairs and I have a Great Dane. Massive dog, obviously, but more charming and friendly than any other breed. We got her when she was 2 months and had  few accidents in the apt on carpets and the laminate floor. We always cleaned it up immediately. Since being potty trained, my pup hasn't had an accidents in the apt. 

If the dog is 1 year + I wouldn't be so concerned with accidents. I don't know, maybe I am biased with my dog and how I rent. I'd say not to overthink it because the longer it's vacant the more money you miss out on. Trust your gut. Take a larger pet deposit. And do bi-weekly checks of the property or as see fit.

Enjoy!

@Joel Florek It's extremely refreshing to see somebody else on here who is not only young, but able to articulate their ideas and come off as prepared, knowledgeable and intelligent. Many new investors and young people in college who are interested in real estate cannot articulate their ideas to save their life and it clearly shows.

Just wanted to say thanks for restoring some hope for our generation haha. 

What everybody else has said is great advice and all accurate. So I won't beat a dead horse. I am more curious about details for this deal. That seems insanely low for a 10 unit building. It's tough to even find duplexes and triplexes for that. Have you seen the inside yet or exterior in person @Account Closed ?