All Forum Posts by: Roy N.

Beth D.

1) Concrete

2) Ceasar stone

3) Corian {I'm not a fan}

4) resin impregnated wood pulp

5) There are a few countertops out there made from recycled materials (glass, cement, wood fibre) that look like stone, but can be cut with your table saw. I saw one at a home-show last year that looked like soapstone ... I'll go looking for the information and send you a PM if I find it.

Thanks J Scott

Thank-you for the follow-on.

I wasn't trying to imply insulating the foundation wall would make sense for you in Atlanta ... perhaps if you were creating a livable space (i.e. full {walkout} basement) it would be benefit the cooling load.

There are still homes here that are just sprayed or rolled with a asphalt / rubber membrane product similar to what you use - if a foundation is exposed during renovation, this seems to be how it is handled. The full wall dimpled membrane is becoming more common - particularly when insulation is involved.

We are also see some insulated concrete forms - where the insulation is embedded partway through the form prior to the pour.

Patrick,
There is still lots of linoleum around. There are boutique manufacturers of linoleum and some of the big players Armstrong/Shaw/Forbo all have lines of linoleum ... Forbo has a huge range of product under the branding of Marmolleum.

It is still extensively used in commercial applications (hospitals, daycares, etc) and still finds its way into residential properties.

Granted, it is usually pricier than vinyl, but if you were looking to finish a higher end rental - or were building "green", you might well use linoleum.

Patrick Pfohl

Do you know any other potential tenants (friends, co-workers, etc) who are looking for a place and might meet you landlords screening requirements for a good tenant?

When you speak to you landlord about the change in your life plans, ask if she would like you to bring her applicants for replacement tenants?

J Scott

Is it {still} common practice down south to simply tar (or rubber) seal basement walls?

Here it is becoming more common to run a dimpled membrane (like Delta MS or SuperSeal) from drain/footing to grade (or just above) .. sometimes in combination with a roll/brush on coating.
Of course, we often insulate basement / crawl space walls externally using {polyisocyanurate} hardboard or dense rock wool rigidboard and then apply a drainage plain and membrane over top.

Monsieur Harris,

Ce n'est pas français et je ne peux pas le pardonner

Interpretation services, Dawn. Translation is performed on existing texts ... it is not performed in real time

Interpretation is the real time conversion of spoken word from one language to another.

Andrew O.

We've been in a similar situation - acquired a property with a tenant (long-term tenant in our case) where the rent had not been raised in 16-years and was woefully under-market {though not to the degree in your situation}. Their particular unit also suffered from deferred maintenance and pets (3 dogs).

My first inclination was to get rid of the existing tenants, rejuvenate the unit and list it at market rent. This would mean a loss of the current revenue stream; at least one month of vacancy for the renovations - likely more by the time it was rented;the cost of the renovations themselves (which would be fairly extensive); and the purchase of new appliances (tenant provided their own appliances). When I tallied it all up, I could be out-of-pocket 9-12K, by the time I was receiving "market rent"

A few days later on my morning run, I worked out how long it would take for me to recover the delta between the rent being paid by the current tenants (who had been there 8-years) and the 'cost to get to market rent' {which was ~$200/mth more} ... that number was someplace between 3.75 & 5 years {more if I had an extended vacancy after renovation}.

Along with that revelation, it also occurred to me the current tenants would be very aware they were paying below market rent.

So we all sat down and talked it though.

We first dealt with the elephant in the room and discussed their current rent versus market rent. I proposed two rent hikes spaced a few months apart that would take them halfway to market rent ($100). They were happy and relieved as they were expecting a larger and more aggressive increase and feared they would have to move.

Next we discussed the deferred maintenance in their unit - they had a shopping list of things they had been trying to get done by the previous owners. I made it clear what we would be willing to do and what we would not address given the three dogs (and 2 cats) {i.e. we would put down new {commercial} grade vinyl floor, but would not upgrade the laminate flooring to hardwood as we had done in another unit}.

Now, a year later, the tenants are paying $100/mth more in rent; we've replaced windows. This autumn we will renovate the bathroom and put down new vinyl in the bathroom & kitchen. Everyone seems quite content.

So, perhaps have a meeting with this tenant and talk about your elephant and how you are going to tame it ;)

Steven,

Do you have an existing first mortgage on the property? Are both your names on the mortgage?

If there is no mortgage and/or your name is already on the title, you can offer to finance his buy out of your half. You could write him a carry-back mortgage for that portion of your half he cannot afford to purchase outright. Alternatively, you could arrange an earn-out whereby you retain 80% - 90% of his portion of the the cash-flow-before-taxes (CFBT) until he has earned out your half of the property {this could be done even if there is an existing mortgage in-place}.

Be warned that if you have a mortgage and your names are both on it, the lender (especially a bank) may force the remaining partner to refinance (rather than simply issue a "release" of the other partner from the mortgage).

There are others here like Jon Holdman, and @Bill Gulley, who have deep experience and better know the financing options available to you in the U.S.A.

Whatever you do going forward, spend a little time with a real estate / partnership attorney and get things in writing.

Dave Krem

It depends on what you envision as an apartment complex. If you are thinking 5/6+ units then it falls under commercial financing as opposed to residential.

Commercial financing is a whole different game. The lender will be interested in how the building is performing as a business: what's the scheduled rent, actual rent (i.e. what's vacancy & turnover); what are the operating expenses; can the building still be cash-flow positive with a 15-25% decline in revenue; how is the maintenance, etc.

They will still look at your personal finances, but more as an example of being able to manage your affairs appropriately and not being on the verge of insolvency. They will also be more interested in your assets (wealth) and less interested in your income than a residential lender. No commercial lender is going to expect you to have a DTI sufficient to carry a mortgage on a 800K - 2.5mil apartment complex.

While you income counts less, you will need to bring a bigger bag of funds when you shop. Conventional lenders will expect down-payments of 25-35% (or more) ... some may allow you to bring 10-15% to the table and accept the Vendor carrying-back the other 10-15% ... the financing arrangement will depend on the building and your track record . Also be warned there are many more fees in commercial financing than in residential - for example, you often pay the lenders legal and administration costs.

Your experience managing rental properties will also be something the lender will scrutinize ... so having a few years managing SFH, triplexes, quadraplexes would be an asset.

There are others here who can provide more details ... I'm still pursuing my first 16+ unit building ... been to the dance twice, but not taken one home yet.