All Forum Posts by: Corey W.

I feel if you were to advertise or offer that your rental has netflix you would be providing the account for them to use along with the hardware to access it.

The exception would be if you posted "netflix ready" meaning you have a smart tv, roku or other form of device that will connect the renter to netflix services using their own account.

For a basic netflix package it's around 9$ per month, plus you'll need to provide Internet access for that device. So in that case you could even advertise that you have wifi or Internet access available as well.

That's extremely helpful for you. The most expensive part will be adding the kitchen and bathroom due to the plumbing. It will depend on how tall the ceiling is in the basement and the elevation of your house in regards to the sewer and water lines, it could be anywhere from a few thousand to 30k. That's probably a good place to start the estimates and layouts. 

If you don't need the downstairs while your living there, it could be easier if ya'll started now. That way you could DIY some of the work to keep costs down. Plus you'll be able to fill one of the units that much quicker.

As others have said, I would start the eviction process asap. You don't know how long they actually want to drag this out and live for free. You can always cancel the process if they do end up moving out in a timely manner. Or you could offer cash for keys if you have some extra money to get them out quick.

I believe at this point they may have tenant rights depending on your state, so it won't be as easy as kicking them out.

Have you checked with the town zoning board to verify your able to legally change the property to a 2 family?

I wouldn't suggest using paypal, as the tenant can dispute the payment and receive the money back very easily. I'm still accepting paper checks for the few units I have myself, however I'm sure there will be people that comment to say a few good suggestions. The following are ones that I've had in mind but have not used yet.

I have heard that cozy.co is good for a couple units. It's free if you don't expedite the payment, the only downside is it may take about 5 to 10 days to receive your money.

Rentec Direct, is a full software but you can accept rent online for a monthly fee plus set up fee. I believe to accept rent, it's $30 / month plus $45 setup fee and 50cents per ach transaction.

123landlord.com charges about $22 plus 25 cents for each ach transaction.

I would suggest to get started by door knocking. You could ask each tenant how long they've lived there as well as their monthly rent. It could give you a better idea if the seller was telling you the truth on how much rent has been paid. 

 Yeah I wanted to get all the major repairs in first, aside from the roof the structure was good. Ex no termites, all the studs and joists seen were in good shape. As for the plumbing there was only two minor leaks in two of the bathrooms, which could be fixed easily by myself. What is your opinion on the asbestos aspect? If i proceed with the purchase, is this something that you would fix sooner or later?

Market in the area is $1400 for 2 bed and $2100 for 4 bed. So that would be able to hit the $3500 mark however, to reach market it would need even a few more improvements than I listed.

Thank you for the feedback

The 60k would be coming from the 203k FHA loan.(60K is a bit of an overestimate) I would occupying the first floor unit for the first year or less. As well all the work I have listed is work that I will not be doing myself, however there are other things that I will be doing on the property myself to improve it.

The property was actually bought at foreclosure 2 years ago by the current owner, and it seems they did not make any improvements.

Good morning!

After going under contract on a deal, it was revealed that the property needs much more work than anticipated. I just wanted to get BP's thoughts.

2 Family Buy and Hold

Offer was accepted at $270k

Seller is only offering $6k credit for repairs(This was their counter to my $15K counter)

Property requires just under $60k to get it somewhat decent, meaning this would fix a few major and minor problems. Such as the roof needs to be completely replaced (there is a ridge sag and seems it could fail, rafters aren't place correctly), the porch needs a larger joist as its sagging down as well, the basement still has asbestos, the basement needs waterproofing as there is a moldy smell and minor water leakage, barely update the 1st floor unit, update and correct the electrical (relocate a fuse panel in a bathroom), brand new panels in the basement with a larger feed coming in, concrete steps in front and rear of house are in need of some repair, the boilers may need to be replaced, replace a few broken windows(completely shattered, just a piece of plywood covers them now), the lower roof gutters were nailed directly into the shingles, there are no GFCI's in any bathroom or kitchen, and a few other fixes.

It would be an FHA 203k with 3.5% down

$9,600 per year in taxes

Garbage is included in taxes, tenants pay gas and electric, owner pays water

The 1st floor unit is a 2/1 rented for $1225, they have exclusive use of driveway, backyard and the basement. 

2nd/3rd floor unit is listed as 3/1, however there is 2 bedrooms on the 3rd floor with a bathroom. In reality it is a 4/2. Rented for $1650

Both units if some updates are done, could rent for quite a bit more.

Built in 1918

Insurance is $1100 / year (estimated by my insurance agent)

Before factoring in 60k repairs, mortgage is estimated at $1392/ month

Other 2 families in there area have sold from $314-$460k. There wasn't many comps so the analysis went back to July 2015 with 5 properties.

I appreciate any feedback. If there's a detail I did not mention, just let me know.