All Forum Posts by: Patricia Steiner

You soooo have to google "what to do with a window in a shower..."  Bob Villa, every "Pinterester," builders, designers have all weighed in.  The problem with old houses - and I am attempting to survive my own historic home - is renovation is not the stuff of Home Depot and HGTV.  It's always got something else going on that the last guy did on a wing and prayer that adds tons of drama.  Glass Block is being demolished everywhere...no one wants it - it's day has come and gone.  But "Bob" likes etching and someone made a super cool acrylic window shutter (https://www.pinterest.com/pin/...) that totally updates the space without any demo.  You've got this...

$700k won't do it in Florida - unless you look at C-markets where the return would be a "why bother."  In Tampa Bay, you're looking at $250K+ a door in a market that will provide you with a higher quality tenant and good returns.  I would like to suggest that you reconsider your strategy:  instead of looking for a commercial property, look for an opportunity...it may be an awesome vacation rental that will earn you far more than any long-term rental or it could be a triplex with a garage that could later be permitted into 2 more units.  When you target your acquisition to a property type, you limit yourself as a business owner.  

The only thing that matters to any business: ROI. If you buy it, can you rent it for a return that meets your financial target? What is the rental demand and price for a comparable property in your price point? What is the vacancy rate? Do more people rent or buy? Where do the people in that city work? All of this is available from a quick internet search...so google away. The criteria is again - ROI.

So if I understand this right, you want to take the word of an overdosed tenant (or his paramedic calling brother who reported cocaine abuse) over your lease.  Drug abusers make promises they cannot keep..."don't do it again" is what you want to hear but it's not based on reality. Best route is always this one:  Manage to the lease.  If no drugs are allowed on your property, it's a lease violation; send them a Notice to Quit with the cure period or whatever your state law requires.  If you don't follow your lease, then you've set a precedent that it's all a big "liar, liar pants on fire" document.  

Running a business is hard work...letting a tenant taint your property is not an option.

Hope this helps.  I'm sorry you were put in this position.

Floridians need to stay out of this discussion because if you dig a hole 4 feet down in our state, you'll hit water or limestone or something that isn't "basement" worthy.  From having lived up North many years ago, the answer is generally no. You can go to the Property Appraiser's site, put in the address and it will show you what the living square footage is and illustrate what that includes.  I don't think you'll like the answer.  Here's a couple things to know:

The bad..."It's not usable, so don't include it in square footage. To be considered “living area,” a home's rooms must meet certain criteria — including the basement. Height clearances, whether it's heated, and the presence of windows: all of these make a space livable."

The good..."a finished basement is an asset to your property value.

Valuation is more than square footage so just make sure you let potential buyers know that the basement offers even more space for that prized media room, man cave, more.

I have known a few investors - all BPers - who did what you're proposing and each one failed but only after a tormenting process of resolution on every front.  Bottom line:  just because you can, doesn't mean you should.  Dissecting the asset itself:

Your have 3 car garage and 4 tenants. Battle ground #1

Big yard = big maintenance.  Who gets it when?  What if I'm having people over and the other tenants crash?  Battle ground #2

4000 sq feet. That's not bragging rights either...who pays the utilities? In my state, the bill can't be split or arbitrarily assessed. You can't submeter a SFH for 4 tenants. Big ugly battle - and even uglier if you're paying the utilities.

What might have a chance is to find 4 people who know each other - maybe students or an extended family - whereby the space is shared by those who already know each other well enough to attempt this.

Selling it would be a better play than this experiment.  I'll have my fingers crossed for you...

@Mike Schorah

Mike, first things first:  check your state law to see if wholesaling is legal.  

Secondly, your questions are telling...you're looking for way to get in the game but you don't have the knowledge (yet).  And, what you don't know will hurt you.  As far as who has been fined/imprisoned, really?  There are Real Estate Commission minutes published in every state with the names of people who violated real estate law.

Again, you don't know what you don't know and that makes you a danger to yourself and others.  Check your state law first.  I am not an advocate of wholesaling.  I have had at least 10 BPers contact me for help with deals that went wrong and financially were devastating.  And, with that, I leave you to pursue the answers you need.  

I don't know anyone who does...there are plenty of online options and you need to choose one based on the screening criteria. Some only do state searches and other do more.  You have to be careful about asking about convictions as this has turned into the latest in class action lawsuits against landlords.  The awards have been based on the premise that if someone has served their sentence, they are deemed free and clear of their debt to society.  Therefore, to deny housing based on a fulfilled obligation is unlawful. The awards have been in the millions.  So don't ask - just do a National Screen on all applicants from an independent source - and let your minimum credit score criteria be the reason for non-acceptance.  Zillow isn't what it presents itself to be...good post and a good warning.  Thanks for sharing your experience.

Geez...a couple of things.  You're not going to buy a property, I hope - but an opportunity.  Population growth is just one factor to consider; another would be rent demand and commanding prices in the market.  Then what's your budget?  Have you been preapproved for financing?  Will the current market rent in your market cover the carry?  And, there are no guarantees in real estate.  You'll be running a business and property management can be high risk if you're not fully versed on the Fair Housing Act, have a killer lease contract and addendum ready to go, along with a solid application and screening process.  My recommendation is to step back and look at what your price point for acquiring is and get pre-approved.  Then look at your own market - are there opportunities, what is the rental demand and prices, how much competition for tenants is there, what the is targeted tenant for the property and what is the quality of the tenant pool.  Once you ascertain that, you may find that you need to step into another market - or not.  You have a different starting point than you think.  Hope this helps.  Go get 'em...

Step back just a second and let's look at this problem as though the property was a new build.  The City has provided water/sewer to the property; you may not be using/consuming the services but the property has the lines in place - and that's exactly what you want.  So, you really don't need to lawyer up or cease/desist on anyone...you need to know what the charges are for infrastructure and account management.  Those charges apply whether or not you consume water or not.  It's what it costs to get and maintain lines to your property.  Here's a rate sheet:

https://publicworks.baltimorec...

I know you're frustrated but what you don't know can and will hurt you.  You're the property owner.  You are responsible for the infrastructure that runs to your property.  It's not a free lunch - but it is a relatively cheap date.  You got to know this stuff. Congrats on your new project...rock on.