All Forum Posts by: Jeremy Bloom

@Tom Smith

Hi Tom. Turns out for a handful of reasons I haven't had to run checks on anyone since the time I originally posted. But my plan was to move ahead using Cosy, or another reputable property management software company offering all of what I want for onboarding. Cosy has been offered plenty over the years as a good direction.

I already chimed in but a new direction came my way I had no idea...

I called my lender and they offer what is called Forbearance where there's 3 options to keep you going during tough times like when you don't get rent due to corona-crap and market crash at same time.

I'm no expert but seems like a good time to hold your transactions if you can. See how this all plays out. Seems like a great tool for anyone to use.

Here's forbearance:

1. 3 months deferred payment with no additional fees. You have to pay it back on the 4th month. So that's 4 months paid at same time. If you only need a month off, that's fine too.

2. Payments for 6 months. (of the 3 months you didn't pay) And they look to see if you can handle the added payments. If not...

3. Rework the loan to suit your situation.

@Account Closed thank you for your sanity. I can't believe how in control many people here think they are. This just started no one has a clue what's next.

And for all who haven't noticed... THE ENTIRE GLOBE IS SHUTTING DOWN WHO IS GOING TO MAKE MONEY TO GIVE YOU? No one. Maybe a few in some industries but out economy is dead in the water for now. And through trickle down, even the companies with workers at home may eventually not be able to pay people. It depends how this goes. Some think we are gonna open back up in two weeks. Some say 8. If we didn't catch this in time who knows.

Like Tyrone says, there has to be some kind of mortgage relief. Otherwise everyone will end up in foreclosure. Everyone! I'm so confused why people aren't seeing that outcome as the end of that path. I just don't see the government allowing the entire country to go in to foreclosure. However this goes down we will get some help somewhere.

In the great depression they created the Section 8 program which paid everyone's mortgage. Since that time the program has become much different and not what it was meant for, but it still helps people get housing. Something like this will come again.

And rich people... it will pay your mortgage so it would be nice if you were nice in the mean time.

As for me... I'm already having to pay for my mortgage and utilities in current house hack due to no tenants from having lead, which is a big deal in Maine. I'd be pretty thankful if during this time while I wait for contractors to abate the lead that the mortgage is forgiven in any way shape or form!

If I did have tenants right now they would likely be Section 8 because that's what I do here. So my rents would be paid. 

If I had cash paying people and no one could pay, I'd call my loan office and come back around to thinking that something has to be done. It will. I believe we won't let everyone lose their home and investments.

But for now please just realize you are not in control anymore. 

@Colleen F. You make a good point. BOTH rags and open windows foil the situation. For me I've come to feel that we deal with people not robots, so they will do things. Even I open a window in winter if I burn something in the kitchen. I think it's about preventing abuse so you don't lose thousands. 

@Elliot B. I found this the other day. Hardware is $900. It monitors boiler pressure, temp outside and in each unit, if the system is off or on, and can work to monitor each zone(with some addition to initial setup). You can see it all on an app or website and transmits over wifi or cell network. Then you get stats on all these things showing a unit was "on" all the time and can compare to temperatures in and out of apartment. Overall it makes you a better property manager controlling your utility and the bills with it.

https://remforce.com/base-boiler-kit/

Lastly, I take this approach because actually metering people doesn't work for me in my business planning or this neighborhood and clientele. People keep telling me things like "make everyone pay for it" but I don't think I have to. This is a pretty simple building actually and I'm not worried about a hundred here or there. I'm worried about water leaks I don't see that cost me $300 this quarter. I'm worried about tenants using twice the amount of oil using a rag. These are big things that if managed like this can allow a manager to either fix the problem or evict the abuser. And ideally monitoring all the utilities and zones will be good for the long term.

This is all my hope anyway we'll see! :)

I am pondering all of this for my 4 unit and I really appreciate all of the angles here. 

I pay for the oil heat and do not plan to change that in the next 5 years at least. And in Maine if we pay for heat we have to keep it at 69 or 70 I forget, and I think 71 or 72 for elderly.

My big issue is rags on the thermostat which beats every single thermostat anyone has shown me. You have to do something more than a landlord thermostat. Here's my thought...

I've decided to try the Next thermostat and flow meter to essentially monitor temperature and flow and have record of the usage and estimated BTU usage. If an apartment shows high flow but low temperature, something is off. Then I get to say "you are abusing the heat. stop or 30 days get out". A chance to manage the situation, even if a hassle.

This does also get you in position for monitoring serious pieces of your building's infrastructure. If you don't live there this is important for everyone and good investment if you ask me.

I have to think a court would listen to some reason over the data. And I feel ok about telling a renter not to abuse free heat. And I feel ok about giving people 71-75 in 30 degrees.

@Brendan Stratton Thanks for that thought. Just acknowledging the stickiness is nice.

@Bjorn Ahlblad I really appreciate your comments. I would hope and pray I don't have to hold out that long to rent again, but it's a good reminder that it could happen that way and I should be ready to accept and work with that to make it. I want to hold on so bad but when my real estate agent heard those two apartments were leaving he immediately jumped to selling since I don't have the cash income to survive. I also found some work but certainly not a wall street job. Still better than my previous hourly so now I can work with that.

@Jacob D. thank you. All advice helps.

I don't have the equity for HELOC. Already looked at that just for rehab.

The roof is new but soft in a few areas along the sides of the building. I agree this really should be done now. It should have been done when they put the roof on last year before I bought it.

Lead, so far, yeah. It could be big, or not. And I hear ya on the grants. There are also additional mini grants for relocating people when necessary but I have no idea, thus all the torture of not knowing but knowing. I'm assuming it will be like many other bills around $5000. That's a hopeful number.

I believe Community Concepts who handles the grant process deal with and choose the contractors, but I did get a list. I assume it's worthless to have the guys come out before we have final test results but I hear ya to move on that and make some calls to start guessing. Thanks for that push!

Could I float a few months?... still playing with numbers to figure that out. I believe I can with only 6 people in the building when it's usually more like 20. I pay the utilities. It's a big building.

We guessed I could walk away with at least $30k profit, with $10k for me. My gut says it won't be that easy to simply stuff my pocket with that 10k. If I do, I suppose we buy again.

So here's the situation in front of me that I'd love some outside thoughts on... 

I bought and live in a 1911 4-unit building. Lots of work to do, great cash flow, the area is rising from the ashes, it's on the water and just 1/2 mile outside of a rising downtown. I deal with section 8 and general assistance giving me the maximum market rates for the 4 bedrooms($1460). We are doing some analysis but we bought for $150k last year and now the compared properties are going for $190+. This is my first deal that ideally I can build upon and it's been called a "house hack" since I live here for free. 

That's the basic background here's what's happening...

I now have to do lead abatement. We don't have any idea what needs to be done or how much yet, and this may take 1-3 months just to find out. Then the work has to be done and I pay 25% of the cost thanks to grants available in Maine. They give $15k/unit for lead abatement. If it costs $60k I have to come up with $12k. If it's more like $10k, then $2500 which is clearly in reach.

At same time, 2 units gave me 30 days and are leaving Sept 1. In Maine that means I can't move anyone else in until the abatement is done. Again a timeline that could go on forever. That's 2/3 of my income not coming in for an unknown period of time.

I'm also pondering my ability to maintain by paying some of the mortgage and the bills of the building if it remains empty for a while. 

This is also a moment in time where with the two families leaving, I can and must do some rehab, but until the abatement part is quoted I have no idea what's what. However, I'm already seeing $3k that I doubt has anything to do with abatement within the apartments. Again I have no real facts here

Lastly, I have a few building renovations necessary that add up to $4,500. I was about to do them but this situation has overtaken that ability to do so and now I need that to keep going as well. I could probably get away with not doing these things but it's a leaky roof, masonry on code violation and radon remediation. Doesn't seem like I can/should avoid.

So...

My real estate agent did some work and selling it would give me about $30k profit after one year when comparing properties being sold right now. I find this profit pretty nice for a first timer. And ideally I end up with about $10k in my pocket. Ideally to make the next deal and build on it.

The other option is hold on to it and here's why that is good...  I was JUST about to make this place really cash flow with raising rents. Even if it takes a few more years it will cash flow really well. Like better than most deals I've learned of and I couldn't be happier for my first deal. I can also move since it's been a year so that's another $1460 of income if I rent out my place.

So so...

I want to change my life and make a good move here to begin doing real estate. I want to say I'm looking for investors but don't know how to do that yet. I also feel ready to sell if that's the better move.

I am also recently jobless and have about $30k available on credit cards and a 401k. I don't really want to manage debt my whole life or risk every dime I have, which is why selling and moving on feels good even if not what I want to do. I believe in this property but I may just be too scared to risk it all on my first property when the other option of selling ends the turmoil. 

What I really can't do is end up with nothing and still holding $15k in debt. (I know... no kidding :)

What would you do? Find money and stick it out or sell?

Thanks everyone! I'm really excited to hear your thoughts.

Jeremy

I never thanked you all for chiming in. Thank you very much!!!

I'm a 6 month newbie to property ownership but this was the topic on my mind. I think the initial question is important, and everyone's input here is both funny and real. Thanks to all for your words.

@Susan Herschell I have struggled with this question as well. Words that bubbled to the surface for me recently was "Landlord with a heart", which isn't a word but a new idea, which those close to me loved and wondered how I would use it which I don't really know. I know I'm gonna get ripped on here for saying that, and it's not what I propose calling anyone, it's just an idea to work with. One that is contradictory as all will see landlord as a heartless individual. No matter what we do it seems this dicotomy will always be. It is old... really old. and as I move in to land lording my own way, I think this word is terrible and simply reinforces this old power dynamic. And I think this dynamic works on any financial status... I bought a really ****** building that is over 100 years old and it is both joy and hardship. All I keep telling myself and everyone else that I will raise the bar without raising rent, and I will keep accepting section 8 no matter how nice I make it. I also have 2 apartments of Somali who I know but they all call me landlord. The ENTIRE NEIGHBORHOOD calls me landlord. It's both funny and weird and not right, but after 6 months of living here as well it is simply my presence that is slowly breaking down barriers to what people think a landlord is, and maybe someday they will just call me Jeremy which is starting to happen. And I feel like everyone on here as their motivation and style, and that we want to put ourselves out there in that way. Be the change if change is what you wish.

I hope that doesn't sound high and mighty... I'm humbled by how hard this is, and how demanding people can be, and how shockingly sneaky they can be to get what they want. Like a new toilet.... whether I can fix it or not they just kept saying new toilet. I was almost done fixing it and the little girl who was watching me work broke the tank. Now new toilet. 

Then there's race and class. I think that's what's missing here that is in my thoughts. And in the end Susan I wish for all to have housing that is fair and affordable and not a ******** because it is fair and affordable. And "landlord" certainly does not say that when it has such a history of "I have power over you so pay up or get out". 

And on that point, I rent to Somali and I recently learned they don't have rent where they are. They go to the woods and get material, squat some land, build a house, farm it, done. So now they are here fleaing oppression and have to come up with 1000-1500 in rent, which even most Americans can't do. Think about that.

To all... yes there's the legal terms of it and that's fine and isn't the question put on the table here. It's a feeling when you say the word. I know it feels powerful to be landlord because it gives us money and many choices. Tenants don't have as many choices and have anger and fear for that, which comes at you when you demand rent, or a late fee, evict, or whatever. Of course you should do those things and must in our way, but it's all "how" you do it. 

I'll move on but leave one last thought...

I have Somali tenants like I mentioned. Now they have NO TOILET. They will by end of today but as of this moment 11 people have no toilet and I didn't do it. I've invited them to use my place as they wish, and I truly don't care and leave the door open, but only the children I know come up. We've become friendly but there is obviously still mistrust and question marks because I am landlord. I think this is the actual reason why the landlord connection stinks when you just want to help and it is not taken. These people come from a country where slavery still exists. And in this building they have often lived without water and electricity. And just because I am changing the building to be better doesn't mean anything to them because it's got a long way to go. 

AT THE SAME TIME... and this feels big... we think we are perfect as landlords we are not. We will never hear their hopes and fears and what makes them comfortable if all we do is collect rent and fees. As I was fixing the toilet my tenant got the call her mom passed away. I listened to her cry and tried so hard to get out of there with a working toilet and let them be. No toilet, with tons of people paying respects. What's worse? In my frazzle to solve their problems I cut a pipe and had to turn off water to the entire building because I didn't know what else to do. NO ONE HAD WATER FOR 5 HOURS. Again, like 50 people came to pay respects and I was in the middle of it. They laughed at me, joked a little, and the tenant told the story to all and it was actually a good distraction that showed me laughing in the face of adversity which I'm pretty sure some of my friends would never put up with. But if we think we deserve whatever we feel like deserving and our business should never ever cause us problems and treat people like chess pieces to get there, I feel we should think again at what we inflict on others sometimes.

I don't care if you hate or love what I've said I would love to hear responses to this.