This one house I am thinking about buying for a rental property, is a multi unit but it has 1 furnace to heat both units. It has only 1 thermostat and the unit downstairs have control of it. My question is have any of you landlords have had property like this and what was your solution?
I currently have a setup exactly like yours. The building has heat and central air all controlled by downstairs unit. The tenants upstairs have been informed that they can talk to the tenants downstairs if they are uncomfortable. I have never had any problems with it.
Part of my property plan is to have a horizontal furnace put in the attic next year. I want to get out of the business of paying for the heat and air.
OHLandlord
Is this in Michigan?
Yes it is in Detroit, Michigan.
Oh landlord you pay for the heat bill. How did you come up with the amount to charge the tenants per month to compensate for the expense?
When I used to rent, the tenant on the ground floor controlled the heat and when she went away she would turn it down. I think it was on purpose. In the winter we would freeze.
I would move it to a place where I could control it.
That is a good question, to go along with it how do you keep the tenant from abusing that privilege and keeping the thermostat @ 80?
I was in Detroit last week, it was 15 degrees. It is cold as heck there. One thermostat heh?
This is an interesting question considering the it’s in 'da hood" You don’t want the upstairs tenant and downstairs tenant fighting over it being to hot or to cold! As it ‘could’ get very ugly very quick.
What area is the unit in?
Westside of Detroit.
The tenants fighting really does not worry me. I am more concerned about how to charge them, so it will be fair to all sides.
Ah the west side. That’s my side of town.
If you don’t mind I’d like to know some info on them, like where you picked them up at and how much?
I am currently looking for a duplex and two family flat.
(Currently occupied of course.)
I lived in a duplex where the front half of the house would control the heat, we lived in the back half. It was horrible the heater was on literally on all day and night for the entire winter. the first month of winter me and my 2 roomates paid $80 in utilities and that was our half really our 6th of the bill. we eventually complained and the owner swallowed some of the bill and the people upfront endded up paying the majority of the bills. we moved out shortly after that and let everyone know that they have no control over the heat or how much they pay in utilities. it still is not rented 3 years later
i would pay to have a thermostat and seprate frunace put in. just to ensure that relations remain good among the two tenants and each tenant has the freedom to use their utilities the way they wish.
Well rontayan the bank didnt accept my offer. The asking price was $55,900 my first offer was $50,000. They came back to the table said make my best offer i offer asking price but they pay 6% closing costs It was a great buy comps showing 85-105k. I could’nt go higher cause i didnt have enough money for closing, i was trying to put the closing cost in the loan i think that what did it.
I have realtors send me their listings of reo properties. I dont know about other investors but i try to find ok houses in nice neighborhoods.
I understand you on that.
Were you planning on doing a refi to pull any cash out of it? If you could burrow the closing cost from someone, I know a guy that can refi with cash out using a 600 credit score and full doc.
Hopefully the deal isn’t deal yet. I just hate dealing with the bank\reo because you need good solid CASH.
The only way I’ve got this to work in Detroit is buying\talking to the seller direct and telling them you want the cash back. (Requires a good loan officer.)
I sent an email to you yesterday let’s stay in touch and see if we can work our way up, via networking.
Take care.
It was a good deal but im going to pass on it and look else where. I am thinking about rehabbing this 4 family unit i seen ok deal it would be a great cash flow property. Just 1 problem this house my not qualify for a hard money loan.