All Forum Posts by: Mark Del Grosso

Thank you, Thank you, Thank You. I needed a good laugh today. That is great. I'm wiping the tears.

This reminds me of the debate of buying vs leasing a car. I have a son-in-law that sells cars and we have had this discussion many times. It always boils down to what are your highest priorities. 

And the ability to see another persons priorities (even if it doesn't make financial sense) is not always easy. The truth is ALL of us make decisions that weigh fiscally wise vs convenience. And convenience is different of each of us.

More sidewalks to maintain, repair or snow removal. But I wouldn't pass a good deal because of it. I own several.

I am going to court next Thursday to try to get my money back from a contractor that required 50% up front. This is a small contractor (I work with his Dad) who I have used before but has lost his license in my city. He delivered material but could not do the job without a license and just puts off paying me my balance. I had someone else do the job with the materials.

My thoughts are I wonder if I could have just put the money in escrow? Maybe a Attorney?

Anyone done this before?

Most of mine are 1/1 and they are always filled with single people that work and are hardly ever home. No kids, no noise, no problem. Average stay is 2.5 years and the units look just like it did when they moved in (as opposed to my 3/2 where the kids bounced off the walls. I'll take them all day long.

Years ago I found myself a single father of two small girls. To say money was tight would be a HUGE understatement. I had to find anyway I could to make extra money and by renting out the upstairs that began my Real Estate involvement. That was a long time ago but the lessons learned during those hard times are still with me and are my motivation. Real Estate has provided me a life I could have only dreamed of. And like @ Brie I don't need to be huge but big enough to enjoy my life.

There have been books and people who have taught me but the book of past Hard Knocks is in my roots.

@Account Closed

Thanks for sharing even though it's painful. I'm sure your next one will be better and one day you can tell this story without that pain in the gut feeling.

Thanks

My first tenant was by far my worst tenant and looking back they pushed me around because I believed they knew more about the "Landlord/Tenant laws" (Her father had been in construction and rentals) than I did. Once I educated myself things changed.

@Leslie A.  When you carry yourself with a calm confidence that says "I know the laws, I have done this before, nothing new here". They will have no choice but to see you as in control.  Like a animal if they see fear or see that they have rattled you they will grow in confidence. You are the owner. Short term or long term you win. 

I love to drive by on moving day to watch a bully tenant putting there stuff in the truck.

I am a male and am always shocked at the boldness of people today.

Yesterday:

Me: This apartment is rented "no pets".

Female perspective tenant: I have a cat but she is a very good cat.

Me: Oh I'm sorry but it's no pets.

Her: Well I would like to take the apartment.

Me: Are you giving up the cat?

Her: No I just told you she is a very good cat.

I just shake my head.

I don't know what the utilities were prior to the seperation but yes they are in the tenants name now. It's really not a question of more efficient heat as it is a question of:

 1) If the utilities are my expense can I increase the rent equal to or more than the utilities are actually going to cost.

 2) Will I make up the cost of converting the system to seperate units.

As @Bill S stated there is a psycological advantage in selling a property with the utilities seperated even though the Cap rate may not have changed (no financial cash flow increase). But this is presuming you plan to sell.

All I am saying is that it is very tempting to want to spend the money to get the utilities out of your name. I have wrestled with this in my mind many times. But at least in my market it is not worth it, unless you are at the point were you have to replace your present heating unit anyway . That would be the time when the numbers MAY make sence. The former owner of my 15 unit did it because he was angry at seeing a window open. It cost him 35k in boilers but was probably revenue neutral.