All Forum Posts by: Tyler Speelman

James M. Billy Smith Thank-you for your advice. Would you have them pre-pay in advance for remaining balance before moving out then reimburse if necessary? Or would you trust that they continue to pay monthly until unit is filled or lease expires?

Hello, Resident wants to break lease because they want to buy a house. I told them no. Their lease expires April of 2020. They then asked to leave in January, but also pay the balance on the remaining months on lease. Would you consider letting them do this if they pre-pay prior to turning over keys? Or is that a terrible idea? Thanks in advance for any guidance.

@Jonathan Steiger

HI Jon,

I would consider choosing an area with a good school district. Also, I think a single story duplex may be easier to rent out than a 2 story. Choosing the worst duplex in the best area with good nearby comps is a great strategy especially for BRRRR in my opinion because it will be easier to force appreciation, rent out then reappraise and refinance.

Montgomery county property taxes are pretty steep.

Just thinking ahead - finding a good tenant between Thanksgiving and the Superbowl may be difficult, something to consider if you buy a vacant duplex that needs repaired. I would also be cautious purchasing a duplex that is occupied - the previous owner may not have screened their tenant(s) appropriately and you may inherit a headache. You could probably get a feel for the type of tenant they may be when you walk through, but I would also look them up on Facebook, etc. to figure out if they are gonna be a problem. If you think they will be terrible then you could work the eviction cost into your numbers before making an offer.

I sent you a personal message, I live in your neck of the woods and would be open to chatting anytime.

@Brandon Sturgill

Yes, gas furnaces for all other units except for 3rd unit. 

All great points. My understanding was that a heat pump with back up heat strips would be best option as opposed to baseboard heat + window Ac unit because heat pump would heat and cool more efficiently. 

I appreciate your recommendations and tips. I will consider adding insulation and will have to look up R-value. 

Chris Gerstner This is extremely helpful! My understanding is that they were planning on replacing the existing air handler with new Rhit 2 Ton Rheem air handler and adding heat strips for back up heat. They were planning on using RP1424f Rheem 14 Seer heat pump, I will look up the product data sheet to make sure there will not be an issue with the rise as you mentioned. Great point on building a platform. Definitely an option, but would prefer to keep unit on ground for ease of maintenance/servicing and especially if that is what a third party professional does - I’ll have to ask about whether or not the cold weather and the rise will have an impact on efficiency. Thank you again for the all the info, I really appreciate it.

Hello,

I have a 3rd story occupied unit that needs a heat pump replaced. Current heat pump unbeknownst to me is leaning against a chimney and supported by 2x4s and on a peaked roof. HVAC contractor went to replace today with a lift and realized the roof was not flat and does not feel safe or comfortable removing old heat pump and installing new heat pump on the roof. He mentioned installing heat pump on the ground. Has anybody done this before? 

The 3rd floor (loft-like area) does not have a gas line or adequate space for furnace. Electric baseboard heat is an option that I would like to avoid because I'm in Ohio and worried resident's electric bill will be sky high d/t cold winters and poorly insulated attic/3rd floor unit. Current residents have complained about high electric bill d/t window air conditioners to cool unit during summer d/t broken heat pump. 

What would you do? 

@evan Seller financing will help with capital gains tax and depreciation recapture. If they choose seller financing they will be earning interest on what they would’ve paid on income tax and could get a better return than other investments like a CD. Could ask, “Would you be interested in carrying financing if you continued to get a check every month without having to deal with the maintenance/repairs and finding a tenant?” “Is it the down payment you want or are you looking to have that monthly payment? “ *These are all taken from bigger pockets real estate podcasts .

Yes, agree on not over leveraging though. Could do no money down, then force appreciation with rehab, rent and then refinance to pay back heloc. Could also flip the property instead of renting it out. Just have to get a great deal and if you plan to refinance make sure your comps are good. I refinanced and had an old house converted to 5 units with very few comps, fortunately after rehab the appraisal came back at a decent number. If I could do it over again I would find sold properties to get an idea of market price and then find a similar outdated/distressed property to purchase.

Jim Hiler thanks for great info I will ask about heat strip and try to get the most efficient product for cold weather.

Matt R. Thank you for great info. There is no gas line to 3rd floor. I’m in Ohio so sounds like electric baseboard heat is not best option. Good point on replacing central heat pump if that is what is in place now. I will touch base with Hvac folks to see if that is feasible and less expensive.