All Forum Posts by: Kathleen Leary

I got 75% assessed market value with a HELOC.

The collateral property was 100% owned, however - that was in my favor, plus it had appreciated substantially since purchase 3 years prior.

The more equity you have, the better refi you can get, obviously. 

My situation may be very different than yours & I maybe going overboard, but this is what lets ME sleep at night:

I set aside 50% of each month's rent for repairs & capital expenses (plus insurance deductibles!). From the other 50% I pay taxes, insurance premiums, yard maintenance, etc. 

Each property now has a fund that will cover major repairs, appliance replacement, natural catastrophes & vacancies.

Keep in mind, my properties are 100+ tears old; I MUST stay on top of routine upkeep/repairs. That may not be your situation.

And since you have a condo, you only have one "outside" to worry about. 

I know lots of big-time, successful investors use a much more complicated formula to determine their income allotment, but I am very small potatoes. 

Works for me; I can always get into more complicated methods as I go along.

With a new unit, not following manufacturer's instructions might void an existing warranty, too.

I change the filters myself monthly. Tenants will not change them even if there's a boxful sitting there; I understand that, actually. As long as the HVAC works, what do they care? (They don't.)

I certainly care, though! I need the units to last as long as possible & if that means monthly filter changes, so be it. I've had tenants tell me they actually appreciate my doing it; shows I care about the property.

Just my 2¢ - 

I personally have a tankless propane heater, which I like very much.  I live out in the boonies & A. there is no natural gas service, & B. electricity is insanely expensive compared to in-town. Thanks, dollar-sucking power co-op!

Sorry - I digress. The units themselves are considerably more expensive up-front as well. 

My rental properties have electric traditional tank heaters. Sorry, but some tenants are morons & other landlords have told horror stories of pilots going out & two days later tenants call wanting to know what the "funny smell" is. I've also been able to relocate electric heaters to more space-saving areas of the home, plus eliminating the venting issue. In 100-year-old houses, sometimes gas vents aren't where they should be. Or code-compliant.

Electric heaters cost less than gas; you're going to have to replace them every few years, regardless. I do think a traditional electric heater does cost a bit more to run than gas. But it's not a huge difference (here) & I don't have to worry about tenants blowing the house up.

And if somebody decides to jump on it when the tenants aren't home? And gets hurt? And decides to sue YOU? 

This state (check your local statutes!) allows the landlord to issue a "Perform or Vacate" notice:

"This notice is used when a tenant has violated a provision of the lease, giving the tenant 14 days to cure the violation, or 30 days to vacate the premises."

After 30 days, eviction proceedings can begin. 

Did you agree to let them have a trampoline? No? Then either it goes - or they do.

Unless you do decide to go with the SmartKey system (or comparable) don't waste time & money re-keying! Just replace the set. Takes about 15 minutes, even for a slow-poke like me. 

Lots of landlords have multiple locksets; when a tenant vacates, just switch to another set. 

All of the above! 

I have also found good tradesmen by word-of-mouth. Never discount the recommendation (or lack of!) from someone in the same investment situation you are. Tree guy, cement guy, foundation guy (yes, around here, they're all men!): if I don't know who to call immediately, I know who to ask!

Get to know other investors in your area. If they've been at it for a while, they will have already sifted through the local guys & can tell you who's worth calling & who isn't. Use their experience to save yourself time & aggravation.

I also never discount the skills & expertise of the trades; after I describe what I want, I always ask, "Do you have any other ideas or suggestions?" If they give you some BS answer, well, that takes care of that. But I've gotten great advice from my plumber & electrician on better &/or more cost-effective ways of doing projects. That's why they get my repeat business.

Just based on what you've said, I feel you have a pretty good legal leg to stand on. Get those move-in photos out! I hope you kept a copy of the walk-through form you provided.

If your landlord didn't do the move-in walk-through (don't know the statues where you are; here, it must be completed within 5 days of legal move-in) or provide paperwork, he/she has no verifiable way to show the condition of the property other than his say-so.

After three years, there will be wear-&-tear expenses that are to be expected. The security deposit is to cover anything over & above that; documentation is essential. 

As noted, say you disagree with the assessment. Have your documentation in order; go to court if you have to. You may find the landlord backs down - if not, you're ready.

Good luck!

And some places have minimum lot sizes, too. You may not be able to split it.

There are vacant lots in this town that can't be built on at all because the regulations changed, so they sit there.

I've got a floor that drops 2 3/8" over 8 feet! But enough about me . . . 

If you're installing underlayment, that can be shimmed to bring it up closer to level. I've used leveling compound, but it's heavy (not my first choice in 100-year-old houses) & it's expensive. You'll also probably need to re-install all the baseboard trim/casings to accommodate the new floor level.

If the floor is flat (not necessarily level - two different things), get a better mid-price pad & lay carpet. Most people like carpet in bedrooms, anyway.