All Forum Posts by: Gaspare U.

@John Underwood

This only costs me $40 in SC and is a wonderful motivator.

That’s a great option. Do you use an attorney or file directly with the courts? I wonder how simple the process would be in NJ?

Thanks in advance

@Maxwell Emerson you lucked out there, you received some really good advice there!

With all due respect, you can't just post the report w/out details of the deal and expect people to draw conclusions. Is 5% CapEx and Maintenance a fair percent? I don't know, is this new? Is it old?

Can you offer some insight? Repairs are $5k, take 2 months and increase the value by $50k

1. Says utilities separate in listing, why do you have water/sewer listed?

2. I would def up the repairs. Without further info the home looks like a huge old Victorian home that was converted into a multi fam (I could be wrong). The first thing that comes to my head when I see a Victorian is “how pretty”. The 2nd things is “who’s painting all that, in them colors?” I would think this home is old and will need lots of upkeep. Check out them windows. Replacing them all could possibly be deal breaker.

3. Check out the furnace and HW heaters, there should be 3 of each. If they need replacing.... 

4. Who is cutting all that grass, snow removal?

I would increase the CapEx and Maintenance amount to 10%. I looked at the listing and Kit and Bath seem old. I would talk to the maintenance company and see what "file" they have on work that has been done over the last X years. How are the furnace and HW heater? Listing says tenants pay gas and water (which is good) but if the furnace and HWH are old, that's 4 bills due. Who takes care of lawn and snow removal?

Good luck

So this is 4 doors (2 apart and 2 ground floor office)? I’m afraid to buy anything with an office. Can they be converted to retail? But may be an issue due to being outskirts of town. If you like the property and you feel you can rent the offices and get the monthly nut to be where the residential apartments cover it I would do it. 

@John Joyce

Only once did a tenant complain about the other’s water use. And that was b/c a faulty toilet flap. In the end the repair was done and all was fine. Because the issue was hitting the tenant in the pocket it lead to an early repair. If I was paying the water bill, that issue would not have been reported.

I absolutely love my Comercial property. Here is my golden rule for commercial property. You need staying power. You can’t be highly leveraged. Residential apartments rent w/in 30 days. A retail store will stay empty for months and months. I had an empty store for 12 months. I’ve seen places empty for 2 or 3 years.

What I love most is the lack of LL responsibilities. They fix/maintain all their stuff. I’m responsible for building (roof I’m particular) and parking lot. They are also responsible for the parking lot’s maintenance.

What about ongoing monthly expenses? (Landscape, gas, water) 

@Tim Herman That's a nice way to put it.. just make each category 8%. Has anyone else found good success with this 23/24% on the 3 items in the North East?

@Melba Chambers I'm new to this site and have tried looking at other's posts for advice. And I must admit, this is the first one that I like!

I would pull the trigger IF:

1. I felt comphy with the area (at that price point I wonder if it's difficult to find good tenants)

2. I had the 100k in cash, this way I wasn't choking on a mortgage if there are delays, etc.

3. Was very confident I could get a loan on the terms you stated. 

Question, what are the laws on non-paying evictions? As evictions and damage to the home would be my biggest concern. Also, tenant pays 100% utilities? That would be good as you wouldn't need to pay water and heat for a non paying tenant BUT what about landscaping. Would you get a fine if the lawn was uncared for for 3 months or so?