All Forum Posts by: Richard Sherman

@Mindy Jensen Look at the home that is facing that side of the house, it is most likely reflective sunlight from low E or high reflective windows in a building facing the home (or maybe your own home it is hard to see the layout.)  This is VERY common as more houses get high efficiency windows.  

Absolutely also possible that the corner there near the roof gets very hot and they are touching the roof shingles.  I am not an expert, but transition to the roof looks a bit odd, is there a step flashing behind the siding there?  

@Joe P. NO way I would accept that.  The possible liability is insane (at least I assume) ask your insurance provider and see if they flip out or not, that is a good indication of risk.  GET IT ADDED AS AN APPROVED USE on your policy if you do it!

@Michael Sontheimer

I would get the property, and jack the rents up as much as makes sense on the next lease renewal, put them at you would wit the repairs made, if they stay, great, if they leas, great.  You always want some income, unless you are doing major work, there is no reason to have both vacant at the same time!

You want to make sure that you check on the landlord laws in NJ, there will be a requirement for how you give notice and how far in advance you have to do it.  Should be pretty easy to find, I would also search for "NJ rent increase form" online, one of the local landlord groups probably has forms for you to use, free or at a small cost.  The BP legal forms are a great deal as well if you need a lease template etc.  Balance being a good neighbor and pleasant with being a landlord, it is a business 1st!

Talk to an accountant! :) At the end of the day you are going to be taxed based on where you live when you make income. Depending on the structure of the LLC (i.e. partnership or single member.)

@Andrew Russell Are the homes owned by the tenant or are they owned by the park?  If by the tenants, what is the lot rent per month, if owned by the park, what is the rent on each unit and what State are you in?

We do everything into one account until the asset value gets too big to have them in 1 LLC, then go into another LLC and get another bank account. You can split by Class (property) in Quickbooks) or just track each property separately from an expense and income standpoint

You will most likely need to do the refi first then HELOC second. If you do it the other way around the HELOC ends up being in 1st position so it would probably be more of a hassle to move them to 2nd, or the new lender might make you pay it off and do it all over again.

Hi Rosario!  Congrats on this!

ALWAYS raise rents...every year, even if just a little.  Your taxes and everything else goes up every year so you want your rents to as well so they are used to it, even if $15-20.

If you want to keep them, I think bumping to $100 under market is perfect, then next year take it up another $50.  If they look to move they will see that even with the rent increase they are still getting a good deal.

If I am living in the building with them, I would do it in person, apologize, talk about taxes etc going up and costs, tell them that the market is $1000 but you really like them and appreciate them and want them to stay so you were able to get the rent to $100 under market.  Make them feel wanted and appreciated.  

Tell them they will also get the notice in the mail (whatever the state requirements are in NJ for giving notice) and keep that for your records.  Also ask them for any recommendations or issues you can help with etc.  

You want to balance keeping tenants and keeping vacancy and turnovers down with making sure you stay at market rates.  OR, where a lot of my properties are just passed statewide rent control...people that were too far under market on rents now can only raise about 10% per year, so if someone is too low, it could take YEARS to get the rents up to market.

@Anthony Wick  Good work!  Yeah, I like you am not opposed to agents at all, but I want them to be properly motivated to bring me the deal and faster than anyone else!