All Forum Posts by: Won Lee

I just closed on a 2050SF brand new construction home . It is a pretty nice home. It didn't come with AC but was pre plumbed for it. I have connections with HVAC guy and I had him install a 2.5 TON unit. He said he couldn't go any higher, as the coil was limiting him.

Well, previous to installing the AC unit  the temperature in the home was 78 degrees when it was 95 degrees outside. It has been extremely hot for the past 2 months in Portland area.

The HVAC guy who I trust said the HVAC portion was working ok and ducting work appeared ok too. 

After install, renter says the house has been 74-78 degrees with AC going most of the day. 

Would you junk the brand new unit you paid thousands for and upgrade to a 3 TON unit???

Personally, I wouldn't be happy if I was the renter and I was promised AC but it only got down to 75-76 during really warm days. Granted, Portland will be cold and wet for 80% of the year and this has a really odd record breaking summer.

Well, I must be a softy cause I am ordering a new unit(new coils and 3 TON AC unit) and will try to sell the 1 week old unit for prob 35 cents on the dollar on CL. The AC guy and the tenant feel bad about this situation but I always try to put myself in their shoes and I wouldn't be happy with AC that doesn't work properly. The AC guy is willing to install new unit for free.

I am praying the 3TON unit does the job but if doesn't, that means the HVAC or ducting system has inherent issues and I am done spending money trying to fix something that prob cannot be fixed.

Am I missing something? Anything else you would do????

I recently bought two properties in my ow name. While I have a LLC I didn't buy in LLC as I wanted to get personal loan rather than commercial. I'd it easy to transfer properties into the LLC?. Is a RE lawyer necessary???? Or is it pretty simple to transfer ?... Thx

I use RentPrep.com Works well... Everything for 45.00

Thx everyone...I wasn't thinking about owner-tenant laws specific to the state in which I live and own property...I better get help from someone specific to the state of WA.

Think I found some online site to do the background check...I have a decent rental application but I don't have a decent lease agreement specific to WA yet.

Granted I have connections in the HVAC industry, but I am getting central air installed for 2100 SF home for 180.00(it was plumbed for AC already)....OP's price is pretty high.

I am in contract on brand new construction and I am putting in AC on my own dime even in Portland OR area...granted its been a 100 here for the past month...:).

Seems like people expect it these days and I really don't want tenants to put in those window units on my homes.

Hi, 

I just closed on my 1st rental home and will close on 2nd rental in 3 weeks.

Where is the best place to buy/download a good rental application form?(I didn't like some of the wording on the free one from BP).

Same for actual lease agreement??

Lastly, who is everyone using to do background checks on applicants?

I was thinking of asking for 250.00 non-refundable fee for cleaning and a full months rent for refundable deposit. Sound reasonable???

TIA.

wow no way I would have that kind of patience....I am under contract on a banked owned foreclosure and I had the inspection and appraisal done within a week of going under contract...I am closing in exactly 30 days ....and I am in a very hot market and people are very busy this time of year.

In above statement, please take out mortgage payment...even without that the costs should be approx 40% of gross rents..typically its 50% but since you are house hacking it should be 40% and maybe 35%

I think what most people are saying is this, a triplex isn't a commercial deal. Even the banks consider a 4-plex a residential property. When you get to a 5-plex, then it would be commercial and thats when you use NOI and cap rate to establish value of property. With commercial, the only thing that matters is NOI and to lesser degree cap rate. When getting loans on commercial, you will need 25-30% down and banks don't care necessarily about your financial situation but rather the properties. So there is a difference.

With triplexes, think about it as residential. The banks care about YOUR finances for the most part. You will have an advantage here cause since you will house hack, you will save on property management and maintanence costs since you will be doing it yourself. But CAPEX, vacancy loss, taxes, insurance, prob utilities, mortgage will probably add up to 40% of gross rental income.

Every deal is different I am sure so you gotta runs the numbers based on 2 years of P/L's of the triplex and not pro forma fantasy numbers. Try to be conservative with expectations.

Hope this helps.