All Forum Posts by: Kate B.

I own a five unit building -- 2 brick buildings, side by side.   It's in upstate NY.

I am thinking about selling it as condos.  I am thinking about joining two apartments on one side as one unit (two floors).  There is a street level apartment in the same building, with three bedrooms that I'd sell separately.   Next door, there are two apartments, one with 2 bedrooms and the top floor with one bedroom, that I'd sell separately.

I can't find a lot on this site about creating condos before sale.   Five units would become four.

Is there anything I should know or watch out for or consider?

Thank you!

Kate

Albany, on Lark St.

@Wesley W. and @Patricia Steiner thank you for your encouragement.  I am leaning towards keeping it.  I think the broken pipe is in the back of my mind and all the hassles involved.   But I have come to enjoy the property.  It will cash flow with debt service.

@Todd Rasmussen, yes, I'd invest both the cash out and the sale of the property later, for retirement.  If I do the cash out, I will also put some of it into a cap fund.

@David MacClintock, I'll keep you in mind.  Right now management isn't an issue. 

Thank you for the help sorting it out!

I own a five-plex in Albany that I bought at a good price with cash two years.  Other than a broken pipe and damage last winter and contractor issues, it's a good property.  I expect the whole rehab to be done in September with little left to do for awhile.   Being cautious with numbers, I see it's an excellent income producer.

I cannot decide between two possible ways to go:  1) Sell and invest in mutual funds, because my regular job will be very busy (and pay well) the next few years, or  2) hold onto it, but get a cash out refi, and then sell when I retire and the mortgage is paid off.  Managing tenants has not been hard for me;  I act on issues immediately and don't mind it.

Any thoughts?

Thanks.

Kate

I'm under contract to sell a three family I bought four years ago in Worcester for $165,000.  The owner had died and the heirs wanted to sell after their first contract fell through, and I was a cash buyer.   I lived on one floor and rented out the other two floors.   Now, the local Worcester buyers (not out of state) agreed to purchase the property for $260,000 and say they plan a complete rehab.   It is near Holy Cross and I never had problems finding tenants but had to evict a family.  

I have had a great real estate agent who helped with the buy four years ago and the sale now.  She understood what I wanted and had the patience to help me find it.

@Account Closed that it would be good to try without adding anything you don't have, be clear about it, and then add services later if you find you need to.

Good luck!

Cathy, thank you for your reply.  There was a lease, but it expired in November and we are month to month because the landlords know I made an offer on a short sale which has been delayed.  I will still use the lease for guidance, but it gets to be an issue re clarity going forward.   I'm going to move out in April, regardless of the short sale delays possibly continuing, I think.

I appreciate your advice.

Kate

I'm a real estate investor and a tenant. The past six weeks the heat in my apartment has been erratic, sometimes with the furnace just not working. The landlord downstairs found a way to get it working for a day, and then it's out again. Last time, I came back from a 17 day vacation (that I told the landlord I was going on) to find the heat not working, the indoor temperature had gone down to 42 degrees, and the landlord and his wife were on a Caribbean vacation. Four days later, the heat was back on. Then it went out again two more times, and it happened when the outside temperature was below zero.

Yesterday and today there were four broken pipes. I have some damage to my belongings, mostly books.

I didn't want to hijack other broken pipe threads with my question. Does anyone have any thoughts on me deducting Airbnb costs (where I go when there's no heat and/or burst pipes) and high utilities -- landlord has five space heaters going in my apartment to prevent more broken pipes going forward - and replacing damaged things?

Also, if I wanted to move out, what's the best way to do it?

Thanks for any suggestions.

I'm a real estate investor and a tenant.  The past six weeks the heat in my apartment has been erratic, sometimes with the furnace just not working.   The landlord downstairs found a way to get it working, and then it's out again.   Last time, I came back from a vacation to find the heat not working, the indoor temperature had gone down to 42 degrees, and the landlord and his wife were on a Caribbean vacation.   Four days later, the heat was back on.   Then it went out again two more times, and it happened when the outside temperature was below zero.

Yesterday and today there were four broken pipes.  I have some damage to my belongings, mostly books, but they have more damage downstairs.

I don't want to hijack this thread, but does anyone have any thoughts on me deducting Airbnb costs (where I go when there's no heat and/or burst pipes) and high utilities -- landlord has five space heaters going in my apartment to prevent more broken pipes going forward.   

@JScott, I am working on a long term retirement plan in my RE goals.   One part I am looking at is flipping one house a year, netting $14,000 in broker commissions and about $18,000 in profits after all expenses, for retirement.   I thought I'd do this eight times.   All of the net would be invested in equity and bond funds.   I'd recycle the original about $200,000 cash each time and have that left at the end.   One a year.  I don't intend to take a year each time, just being conservative about the facts, and it's easier to put into a calculator. 

The $200,000 seed money is from property sales.

Any thoughts?

Kate