All Forum Posts by: Daniel Levin

@Harriet Baldwin

There are currently 2 meters for 4 units. My unit is 1 bedroom, the other is a 3 bedroom. I’m rewiring mine so that would separate the 3 unit without having to disturb the tenants. Then half the building will be done and I’ll rewrite the other 1 bedroom in the coming year or two.

@Kevin Witkowski

It’s expensive but if you have the funds, it’s best to separate utilities. I’m going through a utility mess at the moment myself.

@Daniel Levin

Ok everyone, thank you for the replies but my main question is: do I have to pay for her utilities if she isn’t paying rent? Now, her lease expires in a week or so anyway so in the ideal situation, she would be getting on my lease and paying her own utilities (except she’s being evicted).

My initial plan was not to house hack. I had enough to pay the mortgage for a year saved up. At the moment I’m looking for a roommate to at least help cover the expenses. Anywho- the last owner lied about a lot of things on the disclosure form (said average utilities were 400/ month, not 900). So there have been a handful of unexpected surprises.

For example, on day one THIS tenant told me that her kitchen smelled like gas for the last 2 years and that the previous owner told her she’d better leave the windows open during the inspections so nobody suspected anything. Day 1- 2500 bucks to fix the leak and buy a stove and have it installed on short notice. Two different inspectors and myself missed it initially since nobody could smell it. There has been a lot of stuff like that pop up. It turns out all of the tenants had been instructed to lie about the state of the place. Sure we found a bunch wrong during inspections so I knew it wasn’t going to be a picnic, but damn! I’m very upset with both inspectors (one mine, one from the bank), neither of whom found half the issues we have since uncovered.

The mortgage is high because 1) it’s my first property and 2) it’s a 203k so most of the refurbishments are part of the financing.

The rent rates are comparable to similar units in the area and could go up a little, but that of course needs to wait until the current leases expire so that’s not an option.

My plan is to use the income from this house to boost my monthly income so I can go and buy a second building, then pay down this first one and refinance. This should be possible with decent tenants but as you can see, I don’t have those in all the units yet.

All has been going very well, and as time goes on I’m updating the leases to get everyone paying their own utilities. I’m just sick of this particular tenant and her excuses. I’m doing what I can to get by and pay everything but what really hurt is this month, the 1025 guy was late, then only paid half due to a medical issue. He is getting on an assistance program and I can actually confirm this one.

So finances have been tight, and I was hit with the typical unexpected expenses and an inaccurate property disclosure. Moving forward, I’ll be starting the eviction process on the 11th for everyone who’s not paid in full.

So I have a plan, and the house does have a tiny bit of cash flow when all goes well. My big mistake is having too much of a heart and not starting the eviction process sooner. The only thing that stopped me is that she has a young daughter. However now here we are and the bank is far less forgiving than I am so I started the process a month and a half later than I should have.

Oh and I am currently rewiring my unit to get onto a separate electric meter. It’s expensive but it’s the first step to getting them to pay their own.

I just bought my first 4 unit building 6 months ago. I’ve needed to put some money into it along the way. 3 units are occupied, the 4th is mine.

The rent breaks down as:

750

1025

1160

Total: 2935

The expenses:

1850 (mortgage)

900 (utilities)

2750 in expenses.

2935-2750= +185 per month.

Each tenant came with the building and I inherited their leases. All was going well until July. The unit paying 1160 just stopped paying. August1, no payment. Said she was getting on an assistance program. Sept 1, nothing. Was having issues with my payment system. Oct 1, I began the eviction process.

The utilities are included in the rent, but she stopped paying the rent and I’m getting shut off notices. I had to get a second job to pay her utilities in August and September and now October. She is aware of the issue and JUST WONT PAY. Her time to leave is up today, and she is still living in the unit. Has no plan of moving. I filed for eviction with the clerk and filed a suit in small claims court. She keeps asking how she can stop this process but JUST WONT PAY!!

Obviously she has got to go. Now I’m down to having to choose whether I want to default on my brand new mortgage or allow her utilities to be shut off. I just can’t afford to support her during this process. I don’t know what to do.

Oh and fun fact: her lease expires in a week and she tells me she has no plan of moving. Do I have to pay her utilities with no lease, and an eviction? It’s impossible to get money out of her!

Obviously I should have started the eviction process earlier, but seeing that it takes 3 months, I’d still be in this situation now anyway.

Someone please help. What the heck do I do?!