All Forum Posts by: Tanzim Seraj

Bought my first ever house witch is an owner occupied 3 unit multifamily house. A couple concerns, the house is from 1814 and I have some concerns of repairs down the line. Also, a concern about the being a liability to tenants. So currently, I bought the house under my name. It's owner occupied so I'll be living in it. I was wondering to put it under an LLC. I have people saying it has amazing tax benefits and I can claim things as a loss and I'll get a bigger return. But other people are saying not to since it will stir things up with my lender and may jack up my mortage and home insurance. Some people say keep it under umbrella insurance. Is that the default insurance when you buy the property or is that a separate entity? I'm confused.

I was unfortunate to have knob and tube. So isn't electrical work going to be a lot of money. And also for repairs and other stuff like that if I were to put those as a tax deducation, am I going to get that money in my tax return? 

Okay again , the house is from 1814. So far I got the tenants to agree to the increase so it pays my mortgage. My handyman says I need to redo the siding since it bubbles up. The house has quite of water damage because the seller didn't really take care of it. I had my handy man break some water damaged way celilings and replace them. Turns out under the ceiling it some of the beams were cracked so we had to reinforce them with some strong wood from Home Depot. Then we put the sheetrock, compunded and painted it. Roofing has been done in 2018 but one portion of the roof is aged so I have to get that done to prevent water damage. Also he said siding bubbling up causes water to go in that's why I'm debating whether to do it or not. The worst thing is that the seller did put in new siding but he probably paid for inexperienced labor causing them to be put on tightly. Also, my handyman working on a recent electrical issue, he's found out in the layers of walls that there is no plywood behind the siding. He says that if it get's 15 degrees or below the heater won't do me justice because of that. So he told me to do the siding orginally will be 30K (materials (Kaycan) and labor) but to do that with the plywood would be 60K. And that's what has my head spinning right now. I am just a young single guy 29 working as a data analyst full-time and I feel like I have a lot in my plate already. I have no idea how to finance this. That's someone's yearly salary. Here are some pictures for more context. 

Good Evening Ladies & Gentlemen, 

I am a brand new to this multifamily investing. I closed on a property recently and I am on a transition of slowing moving into the the property since it's a 40 min drive from where I used to stay. Now it's a pretty big 3 unit property with 8 beds and 3 bathroom built in 1814 in Bristol, Connecticut. But it was sold to me "as is" and that comes with some expenses. It has a new roof but some of the lower roof is slight aged. Chimney needs some flashing. I had a couple contractors come over for one issue and they pointed out issues my home inspection couldn't find like bubbling siding (30K), small foundation brick repoint, previous water damage ceilings, open pipe that should be walled up, bathroom window that should be replace because it will rot eventually so I should replace it PVC. The siding is a costly repair. But the siding doesn't seem old. Contractor is saying I can write most these repairs out of my taxes but I'm not ready to spend that big sum of money. And he said he'll replace the whole house siding since some are bubbling up. We've found out their is no plywood behind the walls during electrical work and the guy said that's risky for lower than 15 degree weather. And to do all that will be close to 60K or 6 figures. On top of that everything is knob and tubing.  I'm getting overwhelmed with these prices. Tenants were long term but they are pay lower than market rents. I was planning to raise it fairly for retention because vacancy can be a nightmare at this point. Current then rent  cover 82.5% of my mortgage but raising it "fairly" will at least cover it all and may at least make me a buck to cover some of utilities costs on my end. So I don't know the proper way to manage all these expenses. Obviously I don't want to pay it in one shot. God knows if I will get these repairs back in my taxes. Just a young guy with a decent salary trying to invest in an asset while living in it. What should be my approach. I don't want to burn my life savings down the drain. 

I could use some advise to give me financial strategies to go about this. My goal was to build wealth and passive income but I feel I'm in a ditch. I have no one to talk to about this.