All Forum Posts by: Tim Delaney

Quote from @Tanya Maslach:

@Tim Delaney 
Thank you.
Agreed - we really don't want to deal with it, as it's the PM's job.

Just trying to be good landlords.

This is the first issue, not the second, with the garbage disposal... (other issue was a leaky toilet we took care of, at our expense). 

 Yes, I realize it was the first time, that is why I would cover the cost in an effort to be a good landlord and not discourage my tenants from reporting future issues. I would also explain that if it happens again that they may be responsible for some or all of the cost. In my leases I put clearly that if a tenant flags a request as emergency and it is determined to be their fault or not an emergency they are responsible for the cost. That's a bit different than this situation, but just wanted to share.

Based on a quick answer from Perplexity it seems like there would be no issue with you buying the home and collecting passive income, but you may not be allowed to manage it yourself since that is considered active work. You’ll probably want to consult with an immigration attorney to be sure.

That’s a tough one in my opinion. For a good tenant that has paid on time and was keeping the place in good clean condition I probably would have just eaten the charge. However I also probably would have tried to troubleshoot over the phone before sending the plumber which may or may not have removed the need to send someone. I don’t like my tenants getting the idea that they will be charged anytime they report something wrong.

That’s just my two cents without knowing the entire background on your relationship with the tenant. I’m sure others will say the tenant should pay.

Search for the BP podcast episode with Jude Bernard - he is very active in NYC.

Since you are using an FHA I'm going to make an assumption that you are putting a very low down payment on the purchase. There are separate loan products for construction of an ADU (checkout Derek @ThatADUGuy on Instagram) to learn more. But basically with a construction loan you will need to have considerable cash involved - most costs need to be paid for and then the bank will reimburse at certain checkpoints.

You may want to start with some smaller value adds inside the existing house to maximize rent from the house hack. 

Do you have enough equity to do a cash out refi and use that cash to put a down payment on another property?

If you decide to sell I would sell it vacant. Whether you fix it up or sell it as is depends on what your market dictates. Will the sale price be worth the cost of the repairs?

Sorry you are dealing with that, it sounds awful.

My guess is most attorneys are going to charge hourly on something like this unless you are suing the HOA for damages in which case they may take a contingency fee. It seems to me though your short term objective is to get the HOA to take immediate action on the roof. It couldn't hurt to call a couple attorneys right away to see what they say in terms of cost and suggestions for dealing with this quickly.

In terms of mitigating any legal issues with your tenant be sure you are documenting every conversation you have had with the HOA in terms of asking them to make the necessary repairs. Be sure you consult your agreements with them as well to determine if there is some other action you are responsible for.

You may also want to contact your insurance to find out if and when they may step in and do something. Maybe they would/could take it upon themselves to pay for the repairs to the roof to salvage your unit and prevent further damage then they would go after the HOA to recoup costs. They may also be able to temporarily relocate your tenant to avoid any other issues.

Quote from @Amit Chugh:

@Tim Delaney - I was referring that one of the properties is listed as Section 8 Property, why one would list that in title, does it make any different or benefit for buyer or seller mentioning section 8 in title? Below is the link of the property:

https://www.loopnet.com/Listing/927-Dixon-St-Tiptonville-TN/...

No idea why it would be listed in the title unless the owners took some kind of government incentive that requires them to only lease to section 8 tenants. I would give the listing agent a call. Don't forget to ask when the last time everyone's rent was increased - with section 8 you can only do that once/year.

I’m not exactly sure what you are asking in the first part of your question. But as for splitting the meters it will really depend on the layout of the building and how much new plumbing may need to be run. You will have to have a professional estimate done. In some areas with low water cost the expense of splitting may not be worth it. Also, be sure to check with the section 8 agency managing the tenants - sometimes if you pass on an additional cost like that they will no longer be eligible to live there if the rent and utilities exceed what they were approved for.

Quote from @Karen Margrave:

Go in person to the planning department and talk to them. Don't rely on what anyone on BP is going to tell you, because things change. Besides, it's always a good idea to build a good relationship with the Planning and Building departments. 

 Just a suggestion for after you call or go in person - send the person a follow up email with a recap of what they told you. I know for myself and other investors they have had situations where someone in the building department says something verbally but then when you go to get the permits or approval things have changed.