Aftermath of a Real Estate Closing

Ok, so now we have the 4 units. But now comes the hard part, getting the repairs done and getting settled in with the new renters, or should I say, getting the existing renters settled in with a new landlord. Today, I got a call from one of my renters, concerned that the rent would increase, and wanting to talk to me about it. I had previously talked with my investor, and he did not want to increase the rent.

However, the previous owner was paying for the gas, and we intend to change the 2 units where this renter lives to all electric. So I informed him today that the rent would not be increasing, but the electricity would probably go up some when we change over to all electric. Our inspectors told us that it is a safety hazard to have a gas water heater in the bedroom closet, and that switching it to an electric water heater would solve the problem.

So for us the advantage will be that we will not have to pay for gas anymore. The renter was fine with that, but requested that we paint the outside of the house. As there are some other repairs that need to be done (and he would be ok with putting them off if we paint the exterior), I think it will be a good idea to comply with his request.

So now I will need to get in contact with my repair guys, and get some firm bids established to complete the work. The original numbers that I put together include some $15,000 in repairs, which I hope will be more than enough to cover the cost of the repairs. I already have a couple of estimates in, and it doesn’t look like it will top the estimated amount.

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