All Forum Posts by: Mike Hoefling

Jon Holdman

I do have something similar to the link you sent but I do not have a box next to the meters where wires are being ran. They are basically 5 individual meters side by side. I am going to call the electric company and try to sort this out come Monday.

Steve Babiak

Great idea, I am going to attempt to follow the wires tomorrow to see if I can figure out where the electrical is actually going to (common area breaker box or tenant). There are so few lights I would think that ~$50 a month is pretty high but I could be wrong, a good question to follow up with the utility.

Mike

You are correct this is a 4 Unit building with 5 total meters and they are all rented so unfortunately I cannot perform your proposed test.

When I spoke with the electric company they said the "house" meter bill was $52.52 the previous month. I told them that was high for the area and then asked them to read off the other units bills and one of them was like $6-8 for the previous month. That is how I am figuring the meters are backwards. I just am unsure if it is even worth it to have an electrician fix it, I am planning on owning the building for awhile so I think it may be worth the cost as long as it is not outrageous.

I found out this week that the previous landlord was paying for one of the tenants electricity, maybe unintentionally because the electric meters are mixed up. The previous landlord use to live in that particular unit so it's not unusual that the meter is set up that way. Now that I own the building I don't want to be paying for my tenants electric bill, is it worth getting an electrician to come in and switch the metering? What should I expect to pay for something like that, $1000? Or do I just leave it and bump the rent some to cover the electricity bill.

Any thoughts?

Mike

I am planning on having all the utilities, water included changed over to my after the recording. I have also been drafting a letter to post at each tenants door which I will also intend to mail and if they are home when I make the posting I will introduce myself. So far I have my Ownership change letter and a tenant information sheet for them to fill out and return.

Good idea on the leases, I will have to start with one and stagger maybe 1-2 months apart.

I will be taking ownership of my 4-unit property on July 17th (This Monday) and would like to send the tenants a letter stating that I am the new owner, where to send rent and such things like that. All the tenants are month-to-month so I want to change the leases to annual leases but want to send that letter/information at another time. Also I was wondering if it makes better sense to change the leases all at once or stagger them by 1 month each.

Any advice is greatly appreciated.

Mike

I am closing of a 4 unit and was notified by the list agent there is water in the basement. It has rained the past 4 days so I assume many older homes in this area would have damp basements but there was about 1/2" of water in 1 corner of the basement when I viewed it tonight.

Now since I am past the P&S and this issue was not raised previously, is there anything I can do? The seller has been very receptive to making repairs but the closing is scheduled for tomorrow. It's possible the closing happens next week because I do not believe everything is finished.

I am really not sure what to do, please help. Also this is an FHA closing so I am not sure if that will play into this either, having strict requirements.

Understood. Unit #4 is $100 below market value rent in its current condition. Could rent for more with some tasteful updates.

The current plan is that I will live in one of the units which will cause the cashflow to be less. Currently, there is no deferred maintenance that I can see the place is in great shape.

4 Units @ purchase price of $285,000
Mortgage: $1217.87/Mo
Homeowners Insurance: $183.33/Mo
Taxes: $456.14/Mo
Mortgage Insurance: $306.58
Water: $95.XX

Total: $2258.92

Rents
Unit 1: $1000
Unit 2: $900
Unit 3: Occupied by myself (previously $700)
Unit 4; $500 (below market value)
Total: $2400

Cuurent Cash Flow: +$141.08
Fully Rented Cash Flow: $841.08

Does that look right or am I figuring this wrong?

Mike

This is the deal...4 Unit building, well actually 2 two family building on one lot. Price $285,000 rents total $3100.

I just found this website last week and there is a wealth of information but I wish I had found it before I got into this deal, with all that said, is this a bad deal or did I do alright?

Mike

I highly doubt it, the only way I see that happening is if my current renter takes over the note or buys the place from me at the price of the note. I owe 139k on the place and to sell I believe it would need a few repairs such as the retaining wall next to the driveway which is the first item you see when you pull up to the house.