All Forum Posts by: Ralph Hunter

I do not think trespassing laws apply to cats. But you could discourage the cat from coming around by borrowing a man (or shall I say a cat) eating dog for a day or so. Maybe that would put the fear of God in it. Another option would be to get one of those motion detectors that bark like a dog. A few encounters with it and maybe it will get the idea. 

I never recommend making a decision based on the tax deductions. If you are in the 30% tax bracket then for every $1,000 of deductible expenses, you will be able to write off $300 on your taxes. BUT you have still spent $700 out-of-pocket to "save" $300. 

I agree with @Rob Beland, choose real estate that earns you the most money after expenses. Then consult with a CPA to determine how to maximize your deductions and shelter your investments. 

Good deals will come, good deals will go. But the best deal for you is one that balances your risk tolerance with your financial plan. If you are just starting in real estate investment, my best advice for you is to start small and safe. Gain experience and then step up to larger investments. One bad investment that leads to a financial loss or foreclosure will damage your ability to continue investing in real estate for many years to come. 

Just make sure that it is clearly spelled out in the lease agreement. Don't advertise the rent at the full price. You want market rent plus pro-rated heating costs. Keeping track of heating costs with and without all tenants and during summer versus winter will provide proof of your assessments. Good luck!

Legally, I doubt you could make a case for not renting to him or her on the basis of their chosen profession. I do not see a conflict of interest by renting to them. If an investor would decide to rent your property rather than own or rent their own home, I guess to each his own. Just make sure that you qualify them just like you would any other renter. Just because they are in real estate does not mean that they are financially responsible. 

The first question is whether or not the toilet is working properly. Some toilets can be adjusted to allow more or less water to be held in the tank. Increasing the amount of water in the tank will increase pressure when flushed. 

If the toilet is working properly, then the problem stems from the user. You, as the landlord, are not responsible for the actions of the user. That would be their problem to solve. 

Splitting off the electric into two separate meters should not be too expensive - though you will no doubt have to pull a permit. You also need to make sure that zoning will allow a third apartment. 

As for the gas, that is usually much more complicated. Rather than splitting the heat, I would consider including heat in the units. I would advertise the market rent and then make the heating payment in addition to the rent. Calculate the square footage for each unit and prorate a monthly average (over a 12 month period) per unit. Then in the lease agreement state that based on the usage by the tenants, the heating costs will be reevaluated every 6 months and adjusted if necessary. 

A letter to all tenants would be a good way to go. If there is a paragraph in the standard lease agreement that addresses it, you could include that as well. 

Most likely, the loitering tenants just want to be outside for some "fresh air." This could be a good thing because I doubt you want them smoking recreational drugs in your unit and being spread through the building through your ventilation system. Perhaps an easy solution would be to set up a small picnic area out of the public line of sight. This would satisfy the needs of all of your tenants and you will come out looking like a great property manager. 

Question. Does the third floor unit have its own bath and kitchen or will your friend be using yours? If it can stand alone as its own unit, then it would be wise to separate the utilities but you will first need to check with planning and zoning to see if a third unit is allowed.

You may also need to pull a permit to separate off the utilities. Electricity shouldn't be a problem but it may not be realistic to separate the heating systems.

There are some really good programs out there for first time home buyers - but it depends a lot on what you want to accomplish. Do you want to buy your own home or are you content with renting and investing in a rental property? 

If you want to purchase an investment property, then what do you want to accomplish with it? Are you looking to add to your monthly income or build a portfolio?

If you can solidify what you want to do and where you want your investments to take you, you will be in a better position to decide which programs will help you to reach your goals.