All Forum Posts by: Brandon Ingegneri

@Sean Doherty, As @Anthony Thompson stated, a generic septic is generally speaking in the $10,000 to $12,000 range for a 3 bed.  The price does go up exponentially after you go beyond three beds.  If there is a high water table, or if you are near a coastal area, you may need a sand filtration or some other type of specialized system that generally runs around $30,000 depending on the specifics.  

I do not understand why the seller would be fixing the septic from proceeds of the sale.  I would fact check that.  If you are purchasing the property for cash, you can sign an addendum like @Al Murray mentioned.  As Anthony stated, you would have 1 year to get the new system installed and upgraded from the existing cesspool.  

Depending on the LTV, a bank may do a 203k for your septic, but this is not a guarantee. Some banks do get funny when it comes to a septic system.

Best of luck with this. 

In the next month, I am closing on a SFH in Narragansett, RI. I have previously sold properties in this town, but have not found an ideal summer/beach rental and student rental until this deal presented itself. My acquisition will allow adequate cash flow during the URI student rental season, and then in the summer months I will be renting this property out as a beach house. While I own a number of "traditional" rentals in other parts of the state, this will be my first experience in the college rentals as well as vacation rentals.

Any insight that anyone would be able to provide would be greatly appreciated, but I do have a few specific questions that I am eager to hear opinions on regarding both vacationers and students.  

1.  Security deposits (students).  We have all heard about the damage college students cause.  Based on some insight that I have been fortunate enough to come across, a security deposit most often does not cover all of the damage to the property.  What are some specific structures regarding this built into a lease that may not otherwise be utilized regarding a traditional rental?  

2.  Noise ordinances (students).  In this particular town, if there is some insane party, the police will sticker your house, and more issues follow after that.  Has anyone specifically dealt with this issue in this particular town, and what safeguards if any should be implemented?

3.  Air conditioning (vacationers).  I want to provide central air for this house.  To the responsible vacationer, it will be a huge amenity.  To the A**hole vacationer, it could become a nightmare for me.  Air conditioner on while the windows and slider are open in the middle of August.  Does anyone have any suggestions on how to mitigate this?  One option that I was considering was having a humidity sensor and kill switch, LED lights, etc.  Efficiency will be paramount with this property, especially considering that natural gas is not an option.  I am limited to propane, oil, or electricity.  

4.  Furnishings (both).  Should I provide linens, silverware, basic kitchen condiments, spices, etc?  Do I make the tenants bring them themselves?

5.  Laundry.  There is a laundromat in close proximity to the property.  Should I provide a washer and dryer, or have tenants utilize the laundromat?

Any further tips and insight regarding either of these areas of rentals would be greatly appreciated.  This is a new territory for me and want to have the same efficiency that I have with all of our other traditional units. 

All depends on the wording in your lease.  Typically, 30 days minimum written notice is needed, and without that, you are technically entitled to the security deposit. Again though, have your attorney fact check in accordance with your lease. 

Welcome to BP.  NG is a great job that will allow you ease with traditional financing to begin the process. 

Lets play out a hypothetical situation.  If you were going to buy a 3 to help defer or lower your monthly expenses and were going to sell your current property once all of the work to the 3 was complete, that could be an argument.  Once you were ready to move into the new 3, family related circumstances may have changed, and it may not be as advantageous to sell the previous property.  Hypothetically of course. 

I know a number of individuals whose leases reflect the school year.  Sept to May. While it does present an issue in the summer months, doing a short term rental or Air B/B may be a possibility for the summer depending on the area. 

@Raymond Hill, do you mind if I ask what the property needs for work, and what your acquisition price is?  Obviously, if you feel more comfortable pm'ing me, that is totally understandable.  I have owned a number over the years, and am closing on a 5 unit within the next two weeks, so I may be able to shed some light if we iron out some details related to your deal. 

@Colleen F., the business tax was reduced to $400 recently.  It may be different for a foreign entity though.  I am unsure of that aspect.