Our First Multi-Family
Well at 47 years young we have entered into a purchase agreement to by a 4500 Square foot duplex. Value of building is 250K and we are purchasing it for 227K. One side rents for 1295 and the other will rent for 1395 because it's just nicer but same size. We are putting 70K down into this with our own money and we will cash flow 2000 Gross per month after the loan payment.
So in a month from now, my wife and I will be officially be landlords. I want any advice anyone can give us here. It's a big step.
Small Items I have been contemplating:
1.) We have a LLC set up and will be setting up a business checking account this week. Do you have tenants send a check directly to your home or should I open a PO box?
2.) If a tenant is ready to move out and I need to keep some of their security deposit (let's say I asked them not to paint or hang wall-paper and they did). Do you wait until they are fully moved out before you give them what you think is right?
3.) When a tenant moves out, do I put the water and electric in my name each time they come and go when it's vacant? How does that work?
4.) Since we have this under an LLC, do my wife and I introduce ourselves as the landlord owners to the tenants?
5.) When vetting out new tenants, can I decline anyone I feel is not going to qualify? How do you tell them they did not qualify?
6.) If a renter does not pay on time, how do you deal with overage charge fees? My feeling is if they do not pay overage charges, I will subtract it from their security deposit?
Thank you all!!
-Marty