All Forum Posts by: Account Closed

If you are not planning on living in the house, but renting it out instead, you won't be able to qualify for the FHA loan with 3.5% down payment. I believe they require you to live on the property for at least 1 year.

It all depends on the bank, but you may be looking at more like 20-25% down payment with a more conventional loan.

Also, I agree with @Corey Woodruff, save a lot more than you expect for expenses and maintenance and factor that into your initial numbers. I just had to replace a furnace that I thought I could get 5 more years out of, it was quite the expense.

@Mike Gannon @Max T.

Thanks for the response. The tanks do have gauges, and I was originally planning on using that to determine about how much is there and pumping it over. The problem is they aren't very accurate. You get an idea of how much is there within maybe 20 gallons, but i don't know that its accurate enough to charge the tenant that way.  

I actually tested using buckets to transfer it, but frankly that was a little too tedious and time consuming for my liking haha.

I think I've found a win-win situation here though. I spoke with my oil supplier (who unfortunately doesn't want to buy the oil off me) and he's willing to use his equipment to pump the oil from one tank to the other. Since the unused tank is in decent condition, he can resell it to another client and he'll take that as payment.  That way I can make some money back by charging the tenant for what's pumped into his tank, I get the huge tank taken out of my basement, and no money comes out of my pocket

@Account Closed Huh, I never would have thought of the incentive idea. That would help get it rented quickly in the winter months. Maybe I'll just keep it as a reserve for now in case I need to play that card.

Putting it up on Craigslist might be an option, I'll have to look into that. I'll see if I can find others selling in my area

Haha I'll load up my truck now, I'll be to Alaska by Monday. I think in order to avoid the trouble of selling it, buying it, and selling it again I would fill the tank up now. Since the tank was full when he moved in I would just be charging him for what he's used thus far (assuming I could accurately measure what I'm tranferring). He hasn't purchased any of what is in the tank now

Thanks for the responses guys.

@John Zoulis Ideally the tenant would have an account directly with the vendor, that way I'm not involved at all and it's the tenant's responsibility. I'm just not sure what to do with the oil currently left over in my unused tank.

@Nicholas W. said, my biggest hurdle is measuring the amount being transferred.  

I guess my first step is discussing it with the tenant.

I'm a complete newbie to landlording. I just rented out half of my two unit two months ago (I'm living in the other unit).  The units are on separate utilities, each with its own fuel oil furnace. I just replaced my furnace and in doing so I switched to natural gas since it will be a lot cheaper to run.

Now that I've done that I have a couple hundred gallons of oil sitting in my basement not hooked up to a furnace.  I was thinking I could pump it over to the other unit and fill that tank up pretty easily. Now the question I have is, what's the proper way to charge the tenant for that oil?

Eventually the oil supplier will come periodically, fill up the tank, charge the tenant directly, and I'll be out of the picture, but since I've already paid for the oil in my tank I would want to charge the tenant for what he's using.

Any advice on the subject would be appreciated.

Coleman's on the 7th works for me.  My schedule is pretty open outside of my 9-5 so if any others would prefer some other time or place I'm good with that as well.

I'm looking forward to getting together with some Syracuse investors.

Welcome to BP! I'm new here too, I'm just getting started in REI.

P.s. Having lived in Albany and Syracuse, it's always interesting to see where people draw the line between upstate and downstate NY

I'd be interested in meeting up. I'm just getting started in REI, I bought my first 2 unit to house hack about a year ago, but it would be great to get together with other investors in the area