211 North Street

25OCT15-

We put this house under contract last week with $50.   The inspections have been performed and everything looks great.  There is still a lot of work to be done but I have a great team and we should be able to get it done fairly soon.  Hopefully within two months before the winter comes.  New roof, interior paint, and upstairs flooring, seal the basement and place a dehumidifier in it as well.  Then it will be time to rent.  We should be closing next week using a power of attorney on my behalf.  This wouldn't be possible without a great team.  And mine is the best.

4NOV15-

Home inspections went well. Electrical was very new and the foundation looked good. Needs some plumbing work because previous owner didn't finish putting in a bathroom upstairs. When complete it will make the home a 3/2.

Went into closing yesterday and all documents have been signed with a POA since I am not in the area. Should have the keys Monday. First thing to upgrade is the roof. Already have two quotes but they are both high. Waiting on the 3rd one to get in. Next will be upstairs flooring, plumbing and painting.

19NOV15-

We closed on this house the 13th of November.  The power of attorney came in two days late, but when it's coming from half way around the world via a 3 day shipment, that's ok with me. I've hired one of my friends from the area to clean the house and make it habitable.  She did an awesome job and was able to point out several things that needed to be fixed before she would live in the house. 

*new water heater, new carpet in one of the rooms, new sump pump (going to relocate as well)

These were the items that I didn't know needed replacing.  It also needs a new roof, gutters, trim work and interior painting. Once these items are finished I will feel comfortable selling it in the future.  For now my concentration is on the sump and painting/ trim work.  I had two plumbers come over to give bids on the work (asked to move sump to new location because it's in the middle of the basement and looks horrible, and also install another bathroom on the top floor).  I've heard back from one but it's only been two days.  The painting will be completed in another week my friend who is a local painter.  He is also going to finish the trim work.  Looking forward to the next two weeks.  I feel like a lot of progress on this home has already happened. 

I also put in a bid on another house just down the road from this one (420 N Main).  Fingers crossed they accept my very unusual (for them) financing terms. 

06DEC15-

Since the last post we've had the drywall holes patched and primed.  One thing to note is that on older homes the drywall won't always work as planned because the current walls may be made from plaster.  The bonding between drywall and plaster is not always the best and can crack over time.  Another thing to note is that on older homes lead based paint may have been used and painters/ drywallers may not want to do the work as you'd like because of the lead concern.  Extra cost would need to be added for the extra precautions needed.

We are currently getting quotes for the painting required to complete the home.  The painting should be done this upcoming week. 

We also have had some trouble getting the plumber in the home to fix the sump outlet.  There is currently a second hand outlet leading to the outside of the house, just outside of the foundation.  This is bad for several reasons: the outlet water can possibly reenter the basement through the foundation, and it also has the potential to freeze in the winter causing even more problems.  There is an outlet within the basement that leads to the city sewer but was taken off for some reason.  The plumber we hired is going to connect the sump to that location making it much better visually and mechanically.  It's been tough getting him in there to do the work, hopefully he finishes it soon.  

We also had to remove about a foot of sand from the sump, allowing it to function properly.

The downspouts for the gutters extinguish only a few feet from the foundation as well.  They will be fully replaced this upcoming spring but for now we are going to put a few feet worth of extensions to get the water away from the foundation.

Once the painting and sump are fixed we will place the house for rent.  This should happen by Christmas.  

29DEC15-

The painting has been completed and it looks like a different house.  A much needed improvement.   The sump pump has also been updated as well as the piping used for it. 

We lost electrical power two weeks ago and the basement had several inches of water when we found out.  We now have a backup generator on hand for future electrical failures.

Carpet is being installed throughout the entire upstairs tomorrow.  It will add to the comfort level of the space and also make it look much better due to the floors current unfinished wood surface.  Going on the market for rentals today.  We should be able to cash flow at 2%.   It was a cheaper home so we had to make a good cash flow in order for the deal to make sense.   The refinance process is the next step that will take place.  The BRRR process is in full effect.

15FEB16-

The molding throughout the house has been completed.  The bathroom has been completed.  Curtains have been placed in the house to give it a more homey feel.  And now we have renters.  They paid cash for the deposit and will move in 01MAR16.  We are having them pay for the utilities throughout the month of February because they wanted us to hold the house.  I feel this is fair since we could've continued to look for other people.   Background checks on one of them has been completed and the other is enroute.  

I've been talking with banks trying to figure out the best option for the refinance.  I'd like to put this house in an LLC for a little better protection.  When it's all done I should have all of my money pulled out with plently left over to reinvest.  The tenants will pay for the mortgage and I will still cashflow after all maintenance and other expenses are realized.  The house will be 1.2% due to the fact that I'm getting a large cash out refinance.