All Forum Posts by: Matt Vezina

Sounds like the numbers work well on either option, I agree with the sentiments that $50,000 is a huge swing in potential sale price.  Maybe worth having an appraisal to bring some clarity to that if you're still on the fence.  With the numbers you posted I don't see a major con from either option, comes down to what works for YOU and how it fits in your plan.  If it were my property I would probably sell it but only because that amount of cash would take me a while to accumulate otherwise and open up a lot of opportunities.  That may be nothing like your situation.  

A recent post about a landlord's cracked sewer line got me thinking about this.  I won't be in a position to purchase my first property until spring 2018 so fortunately this question is not time sensitive.

I'm curious to hear if anyone routinely does this as part of inspection on purchasing your older buildings, especially if you have had a problem revealed by scoping that led to a seller contingency.  I've been extensively researching the market until I am ready to purchase and roughly 100% of the VT multi family units in my price range are pre 1950, in some cases pre 1900 construction so likely have a sewer line that is on a "not if but when" basis for failure.  I understand this would be an additional charge above and beyond the standard home inspection but the price difference between inspection fee and replacement of a broken line is significant enough it seems like the money may be well spent.  

A few sources I've read suggested that tree root intrusion is the only problem that a scoping will catch because cast iron and clay pipes either rust or crack from the outside in, so unless the line is actually broken at time of inspection an impending break won't be seen.  If that is true my thought would be don't bother with the scoping unless there is a large tree near the line.  Appreciate any thoughts or experience, I am fairly handy with DIY stuff but not like this so a broken sewer is #1 on my list of concerns for surprise repairs.  

More information would be helpful to other's suggestions.  Is/was code enforcement gunning for the properties for issues beyond the dilapidated exteriors that you have fixed?  Can they fetch ANY amount of rent currently, or not inhabitable without rehab?  If they can't generate any income without a lot more from you I agree with the sentiments to get rid of the properties and clean up your personal debt before taking on more real estate.  Maybe you'll even generate a little cash out of the deal if you sell them separately with cleaned up exteriors.  

 The breaker failing was not a result of what appliance was drawing power through it. If the breaker was overloaded it would trip (turn off) like it is designed to do.  Impossible to say for sure without seeing a picture but most likely there was a loose connection at the screw terminal where the supply wires attach to the breaker.  Resistance builds up over time, it gets hotter and hotter and if the connection is loose enough some sparking will occur across it which was your lights flickering.  If the breaker has been replaced and the area around the main panel doesn't reek of burning plastic (electrical components melting  smell about as distinctive as burning hair) there is no safety issue. 

Have you checked with the insurance company about an improvement to your rate if the fuse box is swapped out?  That could offset some of your cost on that front. If a fuse blows and a spare isn't readily available it's all too easy for a tenant to stick something like a penny or piece of pipe in the panel and create a fire hazard. I have no idea what kind of change to expect in the rate but I would be surprised if there was none. 

You might find something in Burlington VT that meets those criteria, if 20% down on 4plex can be 120-150K and the winter isn't a deal breaker.  Very expensive for VT but seems like a bargain compared to what I hear about from CA.. It's the biggest city in the state with a whopping 40something thousand people.  Lots to do and a nice water front, I do believe it qualifies as an up and coming college town.  Compared to the rest of the state the numbers aren't great on most of what i see there but sounds like you're focused more on location with a little cash on the side?  $100-200 a door certainly possible.  

Not sure on the conventional part of the question but there would be no 6-12 month range, you must occupy for a full 12 months to satisfy the FHA owner occupied requirement or risk defaulting on the loan due to mortgage fraud if the lender catches wind of it. This sounds like it would get dicey with the two of you married and already occupying another primary residence for tax purposes but I'm sure someone else will be along to clarify that.

No firsthand experience, but every time I've seen this question come up the responses indicate that for a few small units LLC will not protect you better than simply adding an umbrella policy to your insurance while being more complicated and expensive to maintain.

Also many snags to consider such as banks not likely to finance residential property to the name of an LLC, transferring to an LLC later can trigger a due on sale clause in your mortgage, if you mix personal funds and LLC funds to pay for something you can negate all legal protections.

No firsthand experience with this, but if I were in the position of a prospective tenant I wouldn't find it that attractive.  If the rent is raised to subsidize the cost of panels I'm not getting anything free, I'm just paying for electricity in a different way.  I suppose what it would come down to for me is whether the rent increase is roughly equal to the electric bill I would otherwise be paying.  If it's a wash I would give the unit equal consideration, if the solar is higher I would look elsewhere.  It's fair to say I'm in the category of "green millennial" to some extent, I think renewable energy is cool but not enough to pay a rent premium vs. grid utilities.  

Another factor to consider may be your long term strategy with the property?  I could see solar panels being more attractive if you're planning to sell in the not too distant future, not so much if you'll retire with it.