Anyone willing to help a rookie in Northeast Ohio?

Question

I have posted something similar a couple of months ago and received a lot of helpful advice.  I am currently newer to investment real estate.  Since my last post I have found a real estate agent and have been analyzing properties everyday through the MLS portal and using BP calculators.  I have saved up some money as a down payment.  The areas I am looking at are on the West Side of Cleveland.  I am still new and would like to learn from someone that has made it through the beginning stages.

I would like to find a triplex and househack; however, most of the properties are duplexes, which I am opened to investing in.  When I run my numbers a majority of them look good since I am only putting down 5%, but I get a little confused in the expense category.  A lot of the demonstrations I see on the BR Webinar and through books, it is suggested that you should let the tenants pay for the expenses.  However, when I look up rentals I have noticed the landlord paying for water and sewer.

Lastly, I am very motivated to learn and am interested to hear what you have to say.

Phillip Gasper · Answer

@Bjorn Ahlblad  Ideally I would really want a triplex over a duplex but they are difficult to come by.  What would you suggest?

Anna Sagatelova · Answer

As others have said, even if you are paying the water/sewer bill (yes this is common), you can add a flat fee to the lease to offset that expense. We recommend using a consistent formula based on the number of occupants in a unit.

Zeke Liston · Answer

I agree with @Bjorn Ahlblad, it's common for LL to pay water and sewage for 2-4 units @Phillip Gasper. I would just charge an additional water fee on the lease, I charge $50 additional to cover water.

Bjorn Ahlblad · Answer

@Phillip Gasper it is quite common for LL to pay water because it may not be separately metered. Electricity is more often on separate meters. Do what other LL do in your investment area; tenants generally will know what's common practice.

If you can't find a triplex what about a 4 plex? All the best!