All Forum Posts by: Frank Gucciardo

Thanks  Brandon

I was able to get the bills right from the electric and gas company and the owner sent as well. Everything with the electric is sub-metered already (despite what the RE Agent told me initially). Water has to be paid by the bldg owner. The heat/hot water will have to be figured out later.. will have to determine if it makes sense to just up the rents or pay to get furnaces and hw heaters for all the appts (what is the ROI).

Central Hudson is the power/gas company.. probably no better than National Grid :-)

I'm going to post up the deal analysis in a different post.

Thanks for the feedback everyone

 Thanks.  I've asked my agent to make the request.  He is also asking for approval to review the terms of the assumable commercial loan with the bank.

It was unclear about the commercial utilities (except water which she pays in full).  We have another meeting at the property early next week with my GC.  I plan to dig deeper in this meeting.. trying to get my ducks in a row today/tomorrow.

Hi All,

I'm currently looking at a 5 family (with potential for a 6th on the top floor) and two commercial storefronts (1 restaurant and 1 clothing store) in my town.  I'll come back with the numbers later.  What I'm looking to find out it is - would it be acceptable to ask the sellers agent to produce the last years worth of gas and electric bills?  If not, what is a better way to validate these #'s.

Right now the building is partially sub-metered and she is not charging the tenants for any utilities (Gas, water, or electric).  I don't think I can sub-meter the water and will have to live with that.  The Gas and Electric is my principal concern.  I will sub-meter the electric for sure.  The problem with the gas is that the entire building is run off of 1 furnace so that may not fly.  If I can recover the electric cost then there is tons of value here (electric is expensive in my area).

Thanks in advance for any advice or past experiences.

Mike, welcome aboard.  I'm posting a link to another thread about NY and the hudson valley.  I'm by no means an expert but I'd be very cautious about investing in NY now.  I'd love to hear anyone else's thoughts on the subject, especially about the hudson valley.

http://www.biggerpockets.com/forums/86/topics/1632...

Tim, welcome aboard.  I live up in Highland and have been looking in the same areas for a couple of years.  I have yet to find a deal good enough to pull the trigger on.  My biggest concern is that NY State is loosing population at a rapid pace due to a harsh business climate and the worst tax burden in the country.  Very soon, if not already, the housing inventory is going to be much greater than people looking or housing, rent or purchase.

Also, I wouldn't touch newburgh with a 10 ft pole.  I grew up in the town and the city is an absolute war zone.  The school district is a mess as well.

I'd love to hear from anyone with a different outlook than mine.  Maybe I'm just jaded from it having here.

 I always account for vacancy at 10% to be conservative.  You have to figure that you will have at least one month of vacancy per year.  I also account for pm whether I'm going to do it or not.  This will allow me to switch to a pm down the road when I want to sip drinks on the beach :-)

Sorry, meant to mention in my above post that I am looking to hold and rent this property.  I'll post my #'s later on once I had a chance to tweak them.

ok, I finally got to look at the SFH and it was a complete mess.. probably a 50K rip to the studs rebuild, mechanical, the whole 9 yards. I'm not comfortable with that level of work and finance commitment just yet and the rental as an exit option #'s just wont work.

However, we also looked at a duplex in a nice part of town, 3bd/1.5ba and the #'s are very nice.  one side needs some cosmetic and appliances and the other needs some work (there was a leak at one point and the ceiling is a mess).

Question - To do this I'm going to pull funding from a few sources (401K, Savings, CC, mortgage).  If there is sufficient equity (and I would make sure there was before I make an offer) how quickly can I do a home equity to pay back my 401K and CC?  Is there some seasoning that needs to happen or is it really up to the lender since it would be a conventional loan?

 From everything I've read that's exactly the case.  Fannie and the prospective buyer have traded offers several times.  It would be bad faith to accept a second buyer in the middle of that process.  

Still going to see it on Saturday along with a property that looks to cash-flow better anyway. 

 This.. Don't wait until you are almost 40