All Forum Posts by: Michael Healy

Thanks, everyone..very helpful. In another property around the corner every unit has institutional grey carpeting on top of gummy plywood...so, nothing beautiful.  As folks move out I'd like to replace with at least luxury laminate that looks like hardwood. Thoughts?

So, I'm in a bit of a debate with my handyman, who has serviced one of my two multi-families for years (prior to my buying it two months ago...)  All the bathrooms have vinyl sheet flooring. One tenant complained that her bathroom flooring was flaking off around the radiator, and since I wouldn't want vinyl sheet flooring in my own bathroom I replaced it with ceramic tile for not quite the cost of one month's rent. I also upgraded the toilet from a water waster to a more efficient one.  I didn't even think twice about it. All paid for out of gross rents from my two properties.

Some background...I do pretty well after having worked in the same non-real estate field progressively over nearly 25 years, so I'm in this for cash flow and appreciation but do understand that I'll be investing in improving building over the next year. So I'm not living off what I earn in real estate but hope to someday not too far in the future.

My handyman's take is, install the cheapest thing and be done with it. Personally, though, I take pride in my product and want my apartments to be of a quality where I'd want to live there...not Architectural Digest but durable, classic, and clean.

Can you invest in quality and also do well over the long term?

Hey Russ Stein nice to meet you and welcome! 😇 I also invest in the area and look forward to working with you!

Thanks everyone. Very helpful. Yes this came up as I introduced my lease which had the requirement. So I'm planning to require it and rent increases moving forward.

Hi all,

So I just bought two buildings in Western Mass with 16 inherited tenants.  I just got off the phone with a lovely young woman whose lease is expiring this month who has been in the building two years. She said she is not able to afford a $25 rent increase (from $660) and the "new" requirement in my lease to have renter's insurance. 

I believe I provided a clear and thorough explanation of the rationale for increases and renter's insurance, and she said she simply cannot afford both and would need to move. She also told me she is looking into other options for living elsewhere with roommates. It sounds like she's practically out the door anyway, because she was asking me how much notice she has to give, etc.

So it sounds like she's out the door. I told her we could consider a shorter lease or a mtm arrangement and re-visit in the spring. 

I'm not sure what to do about the renter's insurance.  Is it possible to include a clause that makes explicit that the tenant  elects not to purchase insurance and waives their right to damages and loss?  I have pretty strong language in there now about landlord not responsible, landlord's insurance does not cover tenant loss etc.

Thanks,

Michael

Well that's rather discouraging.

Interesting. Thanks George P. I guess I got the impression it was a common thing because everyone associated with the transaction was like "oh, just appeal that after you close." I suppose people will ebulliently tell you whatever you want to hear during a purchase. I'd appreciate hearing of cases where this did successfully work out and how you did it.

Is there a general process for applying to lower my property tax assessment? I recently bought two MFHs for far lower than the assessment value and far lower than the sellers paid. Is this something that's locally determined? I asked my lawyer about it and got some convoluted answer about the assessment lagging a year or two behind values--how it's based on a year or two ago and not current or some malarkey like that. Is that true? What's been the general process from your perspective? Many thanks. Michael

I'm just starting to invest in Berkshire County and am getting started in Great Barrington. I wouldn't call these markets "hot" but perhaps more "stable." Pittsfield itself seems like a great value play.

Hi Arthur Kraamwinkel I'm starting to invest over in Berkshire County and would love to grab coffee next time I'm up.