All Forum Posts by: Tim Cooper

I have had a couple of tenants threaten me before. Both times I have just said OK here is my attorneys name and number. We work close with him to make sure we follow all laws. If you feel we are wrong have your attorney contact him and he will get the legal process started. Just remember, if you are in the wrong, your lease states you will be liable for my attorney's fees. If they do proceed, this is what you pay your insurance company for. Let them take care of it.

Disclaimer; I'm not an attorney and not giving you legal advice.

"Seller merged the utilities because he had tenants in the past not pay utilities and in Ohio the utilities don't follow the tenant. the building owner eventually has to pay them to turn them back on. this was to alleviate that issue of tenants opening utilities with their kids SS# and not paying the utilities."

I got burned by a tenant not paying utilities right after I bought my 1st 5-plex. Since I had just bought it I didn't know any better. After that I always made sure all utilities were paid in full before I returned deposits.

Since that time our utility company got bought out and they follow the tenant not the building.

I would add vacancy factor. It's not a regular expense, but you need to plan on it to be prepared. I usually factor in 10% but hope to keep it well below that. If the area or building you're looking at has a higher factor, you'll have to figure that in.

Something sounds suspicious to me. Whenever the seller won't give information freely be very cautious. Either they are terrible with the books and don't know or there is something wrong they don't want you to know about.

Hi Britney,

This would depend on your local or state laws. I'm not an attorney or CPA, but I don't think you would need a license to be able to write off equipment.

You should talk to an attorney and CPA before you buy your property.

Good Luck

Hi Winston,

Great question. This can be very difficult to do. In one book I read many years ago, (I can't remember the book) the author said even when the owner says no seller financing, if you write it up an offer w/ owner financing it will be accepted.

I have never done this, but when I used to sell Real Estate, I did sell one property that way for my buyer. The owner said that it worked out great and he had never even thought about doing it that way.

I am looking forward to hearing what other BP members have to say. I would like to buy something w/ owner financing.

Tim

Hi John,

Thanks for the reply. That's about what I figured too. It's been on the market for a long time and there's a reason. They are asking $425,000. Time to keep looking.

Tim

I have been looking at a 11 unit apartment building. All units are 2/1. I have not inspected any of the apartments yet, but the common area and grounds seem to be in pretty good shape, just needing paint & carpet etc. I feel with proper management and minor updates, rents could be $750+. I would say this is in a B area with a lot of rentals. Churches, hospitals, shopping all within 5 miles.

One thing I don't like and would get quotes on is splitting up all the heat, air, and water and have them separately metered.

• rent $6875
• Laundry $350
  • Advertising $75
  • Insurance $125
  • Management $700
  • Maintenance $700
  • Garbage $185
  • Electric $565
  • Gas $552
  • Water $366
  • Taxes $1060

I could probably put down about $6,000-10,000, and would try to get the owner to finance the rest of the down payment. If not I would look for some private money. Of course if I could get the owner to take the entire down payment I could use the money I have to start improvements.

Thanks in advance for any advice.

Tim

If the utilities won't give you that information, they will give it to the owners. You can always ask them to get it for you or have them sign a form to release the info to you.

I always have it for prospective tenants when renting an apartment. The electric is free, but the local utilities charges me a couple bucks to get the gas and water & sewer.

Hi @Zach Cox

Welcome to BP. I am a new BP member from Morton.

Tim