All Forum Posts by: Russell Caraotta

Hi,

I own a 2 family home in North Buffalo. It is my plan to sell the home as soon as I can get my 2 tenants out (so I can get the place into selling condition). Their leases expired 3/31/23 and 4/9/23, so they are immediately available. One tenant is a Section 8 and the other tenant is a 3 member family (husband, wife, college son). If you have rental units available, please reply. Thank you!

Russ

@Scott Mac Well said! Thanks.

@Jacqueline Coombs  

@Joe Splitrock

@Joe Splitrock@Patricia Steiner

@Patricia Steiner

@bjorn 

@Bjorn Ahlblad Thanks Bjorn; very helpful.

My error - it should read that he has a small 401k loan already so the hardship route is his only option.

A tenant has asked me to write a letter threatening eviction (even though he is current with payments) so that he can use it in order to obtain a hardship loan against his 401K in order to clear up some unexpected bills. He has a small 401K already so the hardship route is his only option. He is a good tenant, pays on-time for the most part and includes late fees if tardy. Has a steady job with an international company but the company has its own challenges and has reduced staff from 1700 to 400.

I would like to oblige but am concerned about my risks and legal consequences if this gets discovered.

Looking for input. Many thanks.

@Taylor L. Thanks Taylor...comments seem pretty consistent. 

Thank you all for your thoughts, concerns and warnings! Much appreciated.

I own a nice 2 family home (3 bedrooms, 1200 sq feet) with good rents in a demand section of Buffalo. My upstairs tenant (currently occupied by him, his long term girlfriend and their 9 yr old daughter) was about to sign our 1 year renewal agreement when he asked me if I would consider a 4 year term as they love the apartment. I like the idea of such security and guaranteed cashflow. He has never had any issues with rent payment on time. I said - "Let me think about how best to structure something like this."

He then asked if I could follow him to the partially finished attic. He inquired if I would be interested in completing the unfinished part to resemble the other section (dry wall, ceiling, insulation). No plumbing would be provided by me. No added electricity. Is it truly a finished 3rd floor - not really - but it will be an upgrade (and increase the resale value of the home). He said he would like to have it available for a couple of his other kids. I envision some framing lumber, drywall, insulation and flooring. So the 3 bedroom apartment can effectively provide sleeping space for at least 2 more people.

I'm curious to hear your thoughts on 1) the structure of an extended lease and 2) The impact of attic modifications on rent. Is it as simple as spreading the cost across X months? My thought is if we do a 4 year lease, I would spread the cost of the upgrade across 24 months to arrive at the new lease payment. In other words, if the cost of the upgrade is $4800, I would divide it by 24 months to arrive at his new monthly lease of $1300 (he currently pays $1100 per month.)

Thanks for your consideration!

Russ

@James Barnhart Interesting points re month to month. I always viewed the security of a 5 or 12 month lease as a good thing, if the lease agreement has strong enough language for termination for cause.