All Forum Posts by: Brian Green

Thanks guys - will do. 

I have a unique situation with a tenant applicant for one of my rental units. On her own she fails to qualify for the apartment because of insufficient income but her mother is willing to co-sign on the lease agreement. Normally that would suffice and allow approval but the mother is retired with only $45k in assets in the bank.  Additionally she has some spotty credit history with some late pmts on credit cards and some closed accounts. The mother has just over a 600 credit score which is our baseline requirement and the tenant applicant has slightly higher but again not enough income. 

How should I assess this application for tenancy? Deny or Accept? 

There has been lots of activity on this opening but this tenant was the first to submit an application. I have plenty of time to locate another qualified tenant if I pass on this applicant before any vacancy starts to hit my bottom line. What do you think?

I appreciate all the feedback and discussion on this topic.  At this point I'm going to leave the 4 units as  is and use the next several months to further research rental rates with the garage and apartment are included with the main unit of the house. That would make it a pretty unique space with 4 bed, 3.5 bath, deck, kids playground, fenced yard, garage, etc. I'm pretty sure I wont be able to recoup the full rent amount I'm earning on the separate garage 1 bedroom apt but it may be enough to justify legalizing the property.

I am strongly considering converting a unit at another property into a air bnb short term rental this Spring. I never intended to do so but it will serve as a solid test case for the business model where in if it is profitable I can revisit the garage apt at this property and convert that to a short term rental as well. from my research in the market it looks like the top earning units earn more with short term rentals than they would if they were long term. But lots of moving parts with furnishing and clearning services, etc. I"ll keep everyone posted and thanks again for the advice and feedback. 

In my conversations with the town building inspector he communicated that the previous owner was aware of the legality and zoning of the property.  He referenced specific conversations and questions he fielded from that owner prior to and during his ownership of the property. I agree though - a lawsuit is probably not feasible. 

The garage apartment is a small one bedroom above the garage space. The garage space is being utilized as storage and common laundry for the 2 one bedroom units at the property - including the garage apartment upstairs. 

I am also considering getting the 3 units legal and bringing the garage apartment back to the "loft space" it was permitted for. I have to review the building codes but that may allow me to retain a bedroom/bath but just remove the kitchen and potentially rent out as a "private room" on AirBnb to offset some of the loses. I'm in Saratoga Springs NY so its a pretty solid tourist town, especially in the summer months. 

Thanks for the feedback thus far.  

I purchased a multi-family property in the Summer of '15 that originally showed very positive cash flow and potential appreciation. The property was listed on the MLS as a 3 family + in law suite so my strategy was to buy the property, fix it up to increase the rents, and file for a special permit with the town to make the in law suite a legal 4th unit. (value add)

I recently began the permitting process which included updating the building a bit to bring all units to code and hiring a surveyor because no survey existed on file. Through the process I discovered the property was actually only a legal 2 family despite the appraiser having it registered as a 3 family. Further, the planning and zoning boards have declined my request for the special permit because one of the 4 units is a garage apartment which doesn't meet code because its detached. The garage unit was one of the 3 "advertised" units on the MLS listing by the seller's agent.

The town did say that they would provide a special permit to make the 3rd unit legal but I would have to remove the garage apartment.  Or I could cancel my application for the permit and leave everything as is without enforcement from the town. i.e. keep operating the 4 units but they will not provide a CO which clearly limits the up side down the road when I decide to sell the property. At that time I'd either have to sell it as is or shut down the garage apartment and secure the legal permit for the 3rd unit making it a clean 3 unit with garage. 

So my question is this....what should I do now? 

I keep operating as is because the property has ok cash flow which may increase over time as rental rates increase. Worry about legality of the units down the line when I want to sell it. 

Shut down the garage apartment, get the permit now for the 3rd, and operate as a 3 family but at that point it will not produce cash flow.

Sell the property as is and recoup the entire investment. I'm confident it can be sold as is or as a 3 family now at a break even price. 

Pursue legal remedy against the previous owner and agent that misrepresented the property as a legal 3 family in advertisements and in person. 

Or if you see another option let me know!!! 

Thanks for the advice Thomas - I'll see how it goes. 

I want to target a 16 unit complex that is not currently listed on the market for sale in my area. I did some research and located the owner who is also local and has the complex owned within his LLC. The only sales history of the property seems to be in 2010 where it was either transferred into the LLC from his personal name or inherited and placed into an LLC. The complex was built in 1985 and from the exterior it appears to have almost no work done to repair or remodel it since being built.

My question pertains to an effective strategy for contacting the owner and communicating my desire to buy his complex. I prepared a letter of explanation with the desired outcome of setting a call or meeting to discuss but before I send the letter out what other tips or documents should I enclose to showcase my legitimacy as a buyer and my seriousness specific to this property? I can I ensure the owner takes my advance seriously? If I do not get any response from him/her, how long should I wait to follow-up with a 2nd request? Thanks in advance for your advice and guidance.  

Hey Andy,

I'm an active investor living in Saratoga Springs. I have my real estate license and I can assist you in your search and purchase. Send me a direct message if your interested.  Even if you decide against representation I'd be happy to answer any general questions you may have on the market. Good luck.  

Hey Donald 

Some of our business may overlap as I own and self manage small multi family props in saratoga springs as well. 

Let me know if youd like to connect some time and talk real estate. Maybe there are some economies of scale we can take advantage of, or contractor referrals, etc. 

Thanks for the feedback - the background to this deal is a rehabber has owned it for the past 2yrs and has decided to sell instead of fixing it up. House is nothing more than studs right now and filled with miscellaneous building materials. Only explanation to putting it on the market is $ issues and they are in over their head. 

My offer was low but their list price was set based on what he believes he has into it and not what any comp would suggest its worth in its present condition. I'm going to sit tight and just confirm with the agent that she received the offer and see how long it sits on the market. I imagine at some point someone will be willing to make a smaller return for their time than I'm willing to.