All Forum Posts by: Account Closed

I just purchased a two unit rental and have been told by other landlords that it’s best to have all the utilities separate so each tenant pays their own, which I agree with. The way this property is set up is there is one gas furnace and one unit has a thermostat so they would control the heat for both units. Not only do I think that’s unsuitable for obvious reasons I also don’t like that I will have to pay for the heat and increase the rent amount to cover that. The other option I have is to install mini splits throughout the property and go fully electric. It solves the first problem but will cost me more upfront when I’m already putting a significant amount into rehabbing this property. Anyone have some wise words on this to help me make the best decision??

Thanks @Michael S.   but the one I'm looking for is not present on that list.  It was specifically dealing with off market strategies

I registered for the Finding Real Estate Deals Off Market webinar but wasn't able to catch most of it.  I can't find the replay in the archive.  Does anyone know where to access it?

@Brian Mullins The first sentence in your reply was one of the big reasons I came to the forum with this question.  There are reasons to dump this project and reasons to keep it.  I am not the kind of person to shy away from a challange, with big risk comes big rewards.  But I am by nature a cautious person and try to hedge my bets all the way around.  All y'all are giving me what I need...inspriation, warnings, and what is the low hanging fruit of how to make this work better for me, so thanks everyone!!!

@Henry Liu great point and I have to weigh that for sure...it will come down to how much I can negotiate with the contractor to get costs down

@Chelsea Conley yes, I am working a full time job, in healthcare!  So we're hopping right now. Originally I had planned on doing some stuff myself but when I decided on doing the 203k mortgage there are a lot of rules regarding the owner/occupant doing the work.  However, I am very handy and can do a lot so I am considering dealing with the painting and appliances purchase hook up on my own and getting rid of that off the contractors list.

@Robert Beardsley it is a 203k project so the rehab estimates have to be in before the lender does appraisal and approves the loan.

@Andrew Rosenberg to clarify...I looked at the property with my friend/mentor who’s opinion I trust very much. He warned me that it was a monster rehab but he thought it could be done with the crew that he uses for his rehabs for no more than 100k. I ultimately did not ask my friend to GC for me because I was concerned that he didn’t have the resources to deal with the rigorous timelines and paperwork as this is a 203k project. I’m going with a different contractor, but I quickly found out that there would be no way that the project could be done for anything south of 150k based on the first bid

@Darius Ogloza in a nutshell, yes!  When it's your first deal though, it is fraught with anxiety, especially in this case where it's so huge and so many ways things could go south.  I think that I just need to have my wits about me and make sure that I try to work with the contractor (who is also a property manager) to pare down expenses wherever possible and stick within the budget. That said, I can't understate how energized I am at seeing the project through to the end and ticking of that holy grail of the first RE deal under my belt and then renting out and living for (close to) free.  I mean, that's why we all get into this right?  It's exciting!!