All Forum Posts by: John T.

Hello BP!

I currently have two rental properties and both tenants pay their rent via ACH transfer into my bank account.  It's pretty much a bank account to bank account transfer.

Are there any downsides to electronically collecting rent THIS way?  I've read about other e-methods (sites) to use on BP.

Thanks!

@Bret Cox Did you go through with the purchase of this 4-plex?  I'm interested to know your experiences so far managing a 4-plex as I am in the market from moving from single units to a small multi-families like this.  Did your original numbers hold true?  Thanks!

Originally posted by @Drew Whitehead:

In my experience as an architect, I have a couple of comments whether they are helpful or not. The $1-5/SF cost is fairly accurate, especially for a small residential type project. If you come with an idea of how you want it to look and have a preset floor plan it makes it even easier and cheaper. 

As far as submitting and creating your own plans. Most cities have a list of items that need to be included and you would be very helpful on the site plan and other areas but that is typically 1 page of a 50-100 page set of drawings and I feel like you would be wasting more time than not creating and drawing everything. 

The other thing to consider is that every jurisdiction is different and most that I have done work in, if the building is under 3,000 SF, you don't have to have an architect stamp necessarily if you get a structural engineer or other professional to stamp the structural drawings and calcs. I've found that hiring a structural engineer (~$1,000 or so) is well worth it rather than running your own calcs and details that the cities require. 

 Thanks for the perspective, Drew.  Is it fair to say that if I approach an architect with ideas for the floor plan and layout (sketched diagram), the price for publishing plans would be cheaper?  Is there a "service item description" for this type of service that should be excluded from the invoice?  Also, is there any proposed land information that would be required to get started on the drawings?  Thanks for your input!  Much appreciated.

Originally posted by @Patrick L.:

I put a 6 camera system up at a 5 unit building I have after some drama between tenants. I have the DVR setup in a storage area that the tenants have access to and the power for the system runs off of one of the units with that tenant's permission. (there is no "house" meter, only one for each unit). I have the common area, parking area, and entry points to the units covered. The tenants haven't seemed to mind and I was able to review the footage for one tenant to confirm her suspicions of who stole her bike.

I think it deters crime in general and haven't had any complaints yet. I use dummy security cameras on my vacant rentals and my other small multi family properties so that might be something else to consider (at $8/camera). The fake cameras today are pretty convincing, I even had a cop that was looking into a crime down the street ask me if he could see the footage off one of them and I had to break it to him that they are fake.

 Do you remember if you stipulated the use of power for the cameras in the lease?  Did you compensate the tenant in any way (i.e. rent reduction)?  Could you remotely access the data via internet, similar to an NVR?  Looking to get a 4 plex setup with a similar system.  Thanks!

@Aja Leafe-Hall My wife and I actually did this on our first investment. We got a HELOC on our primary to fund the DP on the investment, but we didn't move anywhere. We just factored the HELOC payment into the numbers on the rental, ensuring the investment is entirely "paying for itself." I would recommend since you plan to occupy the new property, buy a small multifamily as a buffer. That way you can house hack the property, have more doors, and decrease your overall DTI. Of course, if this is feasible in your situation.

@Tom Parris Thanks for the breakdown! Much needed info. We are actually looking around for land to develop as a secondary option; ideally, our primary focus would be to buy one. Do you think it's too soon to have plans drawn up before acquiring land? We will build a 4plex sooner or later regardless. That's always been a long game goal of ours.

@Sung Park Thanks for the tip. We actually approached one of our existing tenants and he is going to move and rent this property. Would that still count as advertising?

@Brian Schmelzlen Thanks for confirming! appreciate it. @John Woodrich Thanks. Yes and yes. I plan to give the tenants access to the system as a rental property amenity. Helps with landlording also. I've noticed home security cameras are attracting higher quality tenants or at least garnering a higher rental rate in my area.

Hello BP Tax Experts!

My wife and I are in the process of getting our house ready to be used as a rental.  All inspections are done and we have our rental business license for the house.  We will be relocating to our new primary in about 2 months.

We are installing a security camera system for the property.  Is this tax deductible?  We will be here for about a month or two before the renters move in.  Any insight regarding taxes is greatly appreciated.  Thank you!

Hello BP!

I'm looking for anyone with information on a ballpark number for the cost to build a 4-plex...all concrete/concrete block.  I reside on Guam, and the structures here are 99% fully concrete block/poured concrete construction.  Also, if you have metrics for buy and hold in this type of (all concrete) market, that would also be helpful.  Is anyone familiar with my type of market?  Thanks BP!