All Forum Posts by: Angelique F.

So my rei club advised to never buy site unseen as a newbie.  It took me almost two years to decide on the area to invest in.  I was looking for a lower tax base, and a landlord  friendly state.  Luckily, I found that within less than two hours from my home.  Once I did, I drove the area for hours looking for blocks that were quiet and well kept.  The house is all brick, built in 1924 with an open concept.  Yes, the mold was a concern but I researched how to care for it, and figured it could be managed.  The homes in the area sell for about 30K fixed up, which is why I hope to not exceed that amount with renovations, and with a starting price of 10K, I think it's doable.

Hi Pyrrha, thanks for the mention!  I closed on the 31st and all went well with that.  Since then I"ve been working from the bottom up starting with the electrical.  The home had been vacant for a over a year and because of that, the city had to come out and inspect the electrical and they charged me 50 bucks to come out.  It failed of course with minor issues. I had the issues fixed and then had to pay the city 100 bucks to come back out and reinspect.  What a scam.  If I had known how they work it, I would have had an electrician take care of those minor issues BEFORE calling the city to come out.  This is what I get for buying in another state. I'll know next time. The basement, that had two bedrooms and a full bath, were covered in mold from the floor to the ceiling.  I believe when someone snatched the water meter, water was flowing and who knows how long it sat before the bank took over and winterized the property.  I've had the basement gutted and now I'm working on the plumbing, an electrical short, the boiler and mold remediation.  For the mold left on and in the joists, I've purchased Foster products.  One that disinfects and one that encapsulates.  For the cinder blocked walls I purchased Hydro-Seal 75.  Once all that has been done I'll work on down spouts and hope that will solve the minor water problems in the basement.  I'll be so glad when all the mechanicals are done.  About 3 weeks to go.  I met with the contractor today whose gonna do the main level which is 980 sq ft.  The kitchen isn't too bad.  It is full of cabinets thank goodness that I don't have to replace.  The walls, floors and counter top need work.  The bathroom will pretty much be a gut job except for the tub that is staying.  This is a lotta work but the fear is waning.  I'm only able to get to the property on the weekends, but I have a lock box on the door so contractors can get in during the week.  So far, the hardest part has been finding dependable and licensed contractors with prices I will agree to, lol.  So, that's where I am now, I'll post again later if you'd like.  I can't wait to get to the fun stuff, Decorating!  Thanks for asking and all the best to you!

I thought so.  I wonder why the insurance company wouldn't have at least asked if I wanted it?  Ok, thanks, I will call them back and get it added.

I will surely get liability once I get renters in, but do I need it now while the property is vacant?

Ok, I'll look into getting a CPA as suggested, but do I have to confer with him/her or all the time or just now in the beginning?  Thanks.  

I'm new at this stuff but I'd say you'll end up spending about 15K to fix it up, maybe less.  Are you going to rent it out or try to flip it?

I live in IL but just purchased my first investment property in IN, strictly due to IL taxes being high as the sky.   So, for me it makes more sense as an investor to go invest outside my home State.  Now, the 10% + I'll end up paying for a property manager, well, to me it'll be money well spent. ;)  

I just purchased my first (buy & hold) investment property the other day........FINALLY!   The property is located 166 miles (round trip) from my primary residence.   I've been reading about how I could claim the mileage or gas on my taxes, (IF) I have a home based business.  

What does that mean exactly?  Does it mean I need to register myself as a small business with my state or something before I can deduct the insurmountable expenses I'm about to incur traveling back and forth to the property while it is being rehabbed.

Then my second most concern is how do I protect myself and the property from lawsuits once it's rented?  I only have the one property as I learn more about how this all works, so will just having the home insured be enough to protect myself. 

Speaking of insurance, the home is only insured for Dwelling and Garage Frame.  Do I need more coverage ie liability in case a contractor falls off a ladder or something?

Thanks

It's beautiful Sharad!  Very nicely done, cute as a button :)

Hi Folks,  does anyone have any insight on this area?  I've driven around the area and it looks pretty nice and quiet.  Indiana University appears to be a beautiful campus, but I don't see much for sale in the area.   Any thoughts?