All Forum Posts by: Nancy DeSocio

@Joe Bakleh,

Along with other suggestions on this thread, it comes down to the numbers.  Assuming the zoning works in your favor, what would it cost to convert it back and how long until you recoup that money?  Sometimes the more difficult approach is worth it, but is there an easier way to optimize the property so that you can get the additional $500 per month without converting it?  There may be other reasons you're asking this question that weren't mentioned, as I imagine renting 6 rooms to different people brings on its own challenges.  But if it's strictly for the additional income, I'd start with the path of least resistance on this one.  Just my two cents...but curious what others think about this.  Good luck!

Thank you, @Nathan Gesner, appreciate the input!  Agreed that we can ask her to smoke further away from the building.  Just wasn't sure if this is something I should proactively mention to prospective tenants (who will likely smell it even when I show the apartment).  

Hello BP community!

I'm about to advertise a 3rd floor apartment and could use some advice on how to handle this situation.  The 2nd floor tenant has a medical marijuana card and smokes outside.  She's also on a lease, so asking her to leave is not an option at this time.  The smoke rises and wafts into this vacant unit (one of the reasons the last tenant left).  Would you say anything to prospective tenants when showing the unit?  It's no one's business why the 2nd floor tenant smokes, but it seems wrong to withhold this information if it's going to bother the new tenant/family upstairs.

Hi @Kyle Garand,

I grew up in that neighborhood, and it's a great section of Cranston!  As for the "pros", that area is very close to Johnson & Wales as well as the hospitals but far enough away from some of the grittier streets around those two landmarks.  The Village in general has a great vibe and cool local shops and restaurants, so I think you'd have no problem with demand for your units.  On the other side of the coin, it's difficult in this market for the numbers to work as an investment in that area (unless you are house hacking, maybe).  Also, the housing stock is very old...not unique to RI but maintenance and repairs can run high (especially on the older historic-looking properties).  Just my two cents and interested in what others chime in with.

Good luck in your search!

Hi @Andrew Casal,

To be honest, I've only gone through the inspection process once (that tenant has since left, and I filled the unit with non-section 8).  It was in 2019, and it was quick...maybe 10-15 minutes.  The inspector didn't check every light switch, etc but she did go through every room and spent more time on checking appliances, fire alarm, carbon monoxide, etc.  This is a C-class property, and it was safe and functional but not an updated modern unit at all.  

I'll be going through this process again for an upcoming vacancy, so it would be great to get feedback on your experience if you get any further information!  I'll also be going through the lead compliance certification so will keep you posted on that experience. 

Hi @Andrew Casal,

Timely question, as I was just looking for this today!  You can access the list of items reviewed during the inspection on their website.  From the main page: Housing Voucher -> Owners/Landlords -> Housing Quality Standards.  This is a pdf with the checklist used during the inspection.  I found the checklist to be a handy reference (and outlines the basics of what any good landlord would want to maintain in their building regardless if tenant has a housing voucher or not).  

As Anthony noted, ensuring you meet the lead conformance is important.  PHA may already have that from the previous owner, so you might still need to make a phone call to PHA to get the details for that, as I believe those certificates expire over time.

Good luck!

Hi @Paul Ruhle, nice to meet you!  Fellow RI investor here.  I've been investing for 3 years and also work full time in the medical I.T. field.  Two very different hats, much like yourself, but I like them both!  Looking forward to connecting with you!

@Bradley Scruggs, congratulations on what you've accomplished so far!  

Virtual networking is a challenge, but here you are!  I'd second Anthony's suggestion on our local groups.  The RI one is large, but there is a good chance of finding people that you connect with.  And when you meet those people and know what you are looking for (ex: syndications), it's easier to find the right people..."Why do you know that is syndicating?"...and the connections will begin.  

Time and patience will be your friend on this journey.  As an example, we recently just dipped our toe into the partnership pool with someone I met two years ago.  For many people, it takes time to build trust...but you have started just by making this post!  

If you ever want to chat real estate, I'd be happy to do so.  My husband and I started in 2017 and may have encountered many of the same ups and downs you did.  And we're still here stumbling our way through this :)

Hi @Cordell Martin, thanks for the suggestion! Funny thing with this is that he flat out told me he wants to hold the note to defer capital gains and that the interest can somewhat offset what he would previously make on the property. He wants the passive income without the headache of owning the property, but when he started tossing out numbers, it would never work for me as a buyer. If I want to pay a retail price, put 25% down and hold a high interest rate, I can pick any property off the MLS (and do better at the bank). So I'm trying to negotiate this in a way that works for both of us, and maybe that doesn't exist...but I still want to try :)

@Joe S., if we get to the point of looking at the property, I'll definitely have the contract with me and ready to go.  I completely agree with you on that point!

Thanks for the feedback, @Aaron K. and @Wayne Brooks!  

I agree with your points and should have added some additional detail in that although the loan would be amortized over 30 years, we would include a balloon payment (to give me the option to refi) and a pre-payment penalty (to give the seller assurance he'd continue to accrue interest for a guaranteed period of time).  If he held the note with a 7 or 10-year balloon payment, he'd more than make back the $50K in interest alone while reducing his capital gains tax.  I guess I was thinking of it as a benefit to him if the interest income is taxed differently than the purchase price (capital gains), but I can reach out to an accountant for that kind of guidance.