All Forum Posts by: Barbara G.

Good move resizing the window.  It's worth every penny you are paying for it.  It will make all the difference.  I assume you will have a single sink.  I had a very small kitchen once and we used a smaller single sink and a smaller sink cabinet  I thought every one wants  a dishwasher and the only  place for it is right next to the sink.  Does a drawer have to be only on a base cabinet?  Is there anyway that a drawer can be mounted on an upper cabinet?  You said something about using shelves and if you do that can you eliminate  the drawer and just put a cutlery tray on one of the shelves?

Are you considering a smaller size stove?  A smaller sink?  A smaller kitchen cabinet?

What is your responsibility with the plumbing back up?

Are you  obligated to fix it?

Unless we know what the original cost it  difficult to understand.Are thee tenants all in place?

How much were three original duplexes in total and what are your expenses connected wih them.  Does this hit the 2% rule?

Hi Meg

I agree with everything Daniel Chang said except forgetting about buying another duplex.  That man knows what he is talking about.  Yes, I agree,  first take care of this rent issue with your tenants.  Daniel says you are under stress right now and I agree with that.   You do have to get a handle on this tenant issue and the raise of their rent.

I think putting everything in writing is also a very excellent suggestion. It's  good for you and good for them.  Even though everything was verbal before, now its a new deal.  Get some rent form that spells out the due dates and late charges and make it a friendly form with a Thank you etc.  Keep copies of everything.    As Daniel says give them a little time to absorb the changes but they  know changes are coming.  Putting things in writing avoids personal confrontation.   You are in control as long as you control yourself.  It sounds like you were too friendly with your tenants and that was to you detrement because it prevented you from raising the rent as you should have been doing probably every year.  Be very polite to them but do not return to the former relationship even if they want to do that. If they want to do that you must think of what you can politely tell them as to why it is healthier to remain just landlord and tenant.   

I  want to apologize for thinking you were a husband.  I realized you were a girl immediatley after I posted my response and saw your name and picture.  I only read your post and did not look at the picture.  I just assumed, like I didn't know better, that you were a guy.

You also have to find out when you can raise the rent. 

 Actually you have very little cash flow from that duplex although if you count what you should be paying for rent which probably should be at least $800 or $900 a month I think you are cash flowing.  You do have to live somewhere and you have to pay rent somewhere.

Try not to have any more issues with your tenants.  Just pretend you like them.  If they confront you with any requests just tell them you will think about it and get back to them.  
If they will not pay their rent by money order how do they pay it?    Check is a good paper trail also.  If they pay you the rent in cash I guess you can keep the envelope they give it to you in? and or deposit it directley in  your bank account so you have that record and just keep a diary noting any tranactions, such as when the money arrived and any other informtion pretaining to their apartment.   Everything should be in writing.

Daniel Chang says talk to a real estate agent and that's a good suggestion.  If one does not help go find another one.

I think there  must be someway you can buy another duplex or triplex or quad.  Someone on BP must know.  There might be programs in New York that provides some help for this?  We just have to explore.  That FHA loan also has a sister program, that also lends money for renovation.  Where in NY do you live??  You also have to find out when you can raise the rent.  Did you check Rent o meter? or Zillow and/or Craig's list.  to see what they say is fair market rent for your area? How much are your taxes and insurance (or is that included in your  mortgage payment) How much is your sewer and water bill?

Maybe if you can handle it you can even rent out a room in your apartment until you get some money together.

Try to get a real estate agent in your area to help you.  just tell them what you want and what your financing problems are.  The bank ought to be able to give you some information or a loan Broker.  As I said there might be a way to use your income from the 2 apartments in your duplex and the future rent from the tenants in your desired duplex/triplex?  Does your union or job have any programs and/or banks?  Buying another income producing property should be one of your goals.

I feel you are the perfect person to buy your second property.  It will give you more income and a start of a second real estate career.

Good luck with your school.  Will that give you a promotion at work?

Well you sound like you are on the right track.  You are now enforcing the late fee.  When you are allowed to raise the rent for your tenant do that.    Raise it to the fair market price whatever that is.  When you want to buy another duplex the lending institution should consider the rent you will be getting for the 2 apartments in your present house and the rent you will be getttng for the new duplex that you would be buying  plus in your salary.  Does your wife work?

It's not such a bad thing that you had to paint.  You really do have to have a schedule of mantanence when you own a rental.      

Now You are considering renting your apartment and buying another place so you have to maintain  this place and upgrade this place so you can command more rent for your own apartment and your tenants apartment.

 This  could be a very good move for you.   Another duplex will raise your income now and when you retire.   It should give you more cash flow right now.  It will also help you in tax savings.  It will also appreciate and in addition you will be paying down your principal on both houses.   You should consider   buying yourself another duplex or fourplex.  If you buy a side by side duplex no one will live over your head.

Look at this problem with your tenant in a positive a fashion.  It really will tturn out to be a good thing.   You are now going to enforce the late fee and that will either give you more income or the tenant will stop being late paying their rent..  Either way you are in a better position.  

Another positive thing is you have fixed the tile problem and you have painted.  Now you have the motivation  to raise the tenants rent.  These are all positive things that are good for you.  Your tenants will either pay the raise or move out.  Which ever they choose you are better off.  They might have done you a favor without knowing it.  

These tenants complaints have gotten you to think about your future and your retirement.    You are thinking about buying another duplex which will be a good thing for your retirement  and income flow.  $40,000 a year is not a lot of money and this duplex you are living in has helped keep your own rent low, so it has been a good thing for you.    

Look at 3.5 FHA mortgages where you have to live in the property in order to qualify for that mortgage.

Research fair market rents for your property and raise your tenants rent to that level.  Update your apartment so it will get top rent when you move on and up.  

By the time you move out you should have raised the rent for your tenant to the fair market price.  Speak to a real estate agent about finding you another duplex,  Look at Zillow and Trulia to try and find a suitable new buy for your self.

Keep us informed about your decision and your research because we are rooting for you.  

I think it doesn't sound like a good idea.

Actually it is just an idea right now.  

Why don't you try to  find the 4 houses first and then think about how each one will work and will cash flow.  You can't find them all at the same time anyway  You actually have to start with the first one anyway

What's wrong with doing one at a time or at least the first one and see how you do with the estimating and the hiring of the contractors and  the Rehabbing and the renting.

Join a Real Estate club or a Real Estate Meet Up Group

I really don't understand what you are saying

What properties do you own?  What are they renting for and how much did you buy them for and how much money did you put down and what are your expenses and income

I think you should consider house hacking.  

Join a Real Estate Club or Real Estate Meet up Group and see if there is any way you can swing buying your own duplex place with one of those FHA 3.5 mortgages.

Speak to a real estate agent and speak to a bank and ask the BP people here about any of your options.

You can take the $1,300 you have  to pay for rent for your side of the duplex you buy and add it to the fair market rent you get from renting the other side to your tenant and you will be on your way to rent freedom.

Don't get mad just do something positive for yourself

It looks fine as far as the numbers go

Like everyone said you have to consider the rent on your side because you have to pay rent anyway somewhere.  What rent are you paying now $650 or more? Or Less?

If you are paying more rent now then $650 its an even better deal.