All Forum Posts by: Adam Rothweiler

@Kyle Eckert @Donald S. @Megan Greathouse Thank you all for your replies.  This thread is giving me tons to consider that I otherwise hadn't.  I am currently living in Denver (which is why I'm looking to invest in St. Louis), given the overpriced property out here), but grew up in Jefferson County, MO, lived in South City for a couple of years.  I was under the impression that the city of STL paid water and sewer (which seemed odd but that was my impression).  Also, I hadn't considered the per unit cost for trash.  

Donald, yes they are all 3/1 units.  650/650/700/770 (section 8 in the 770 unit).  The rent roll was shocking to me as well.  The information I found about the property, in terms of maintenance and capex over the last 5+/- years was that the roof and all four A/C condensers are new within that time frame.  That was a helpful piece of information, but I was unable to uncover or maybe just not fully understand the permit history, if permits were even pulled for the work.  

I'm a little overwhelmed by the numbers and unknowns, which is why I reached out to you all. Kyle, I think I reluctantly agree that Dutchtown wouldn't necessarily be "beginner territory." Did you house hack your first deal? That is ideally what I would like to do through FHA, but the barrier to entry is pretty high for my current financial position. Short term problems, however.

Megan, how would you go about estimating the cost of deferred maintenance without going under contract and obtaining a full inspection report?  Or would you put it under contract with a contingency in place for the inspection?  SO MUCH TO THINK ABOUT!!  

Again, thank you all for the replies.  Sorry for lumping them all together! :)

@Account Closed you found the property I'm looking at.  It is in St. Louis, not sure why my anxiety decided to create some anonymity around the property address, but yes we're looking at the same one.  I am a native of St. Louis. Dutchtown, the neighborhood where the property is, isn't the best area, but it is certainly not the worst.  Yes, there are tons of landlords.  I discovered that the taxes are delinquent for 1 year in the amount of $701.  I was able to find it on the city assessor's website as opposed to the county's.  So considering the potential cashflow with proper management and tenant placement, is this something you would at all consider? I don't own any property and I'm not sure what my level of comfort is for the type of neighborhood in which I want to invest.

@Tevin E. Taylor That's just the kind of nugget I was looking for.  I did see that the property had been foreclosed on 3 times since 1999 which is a red flag but I didn't really know why.  I'm going to look at the assessors site right now.  THANK YOU.

EDIT: I included PMI in the report on accident. Originally, I intended to put 10% down to still qualify for a conventional mortgage but take on PMI. I had since changed the analysis to show a 20% down.

Hi BP community,

I'm struggling to understand why this deal screams so loudly at me.  Hesitancy has gotten the better of me and I'm surely missing something in my analysis here (<-- hyperlink to report).  It's a foreclosure property in a B-C neighborhood.  4-family, total rent roll of $2770 (1 unit section 8), foreclosure valuation of $64k.  I feel as though I covered most of the bases, I just want to find out from you all what I could possibly be missing or not thinking to consider.  I even increased the vacancy to 20% because the neighborhood average vacancy is a whopping 24%.  Could you wonderful guys and gals give this a once over and let me know if there's something I'm missing the mark on?  I would love to know if this actually is a diamond in the rough or if it's a bust.  

Hello BP!

I am an exterior general contractor.  I got a call from the client of one of my property manager contacts looking for someone who could build a bedroom addition for their rental home in Denver.  That is not a scope of work I'm licensed to execute but I want to provide him a great reference so I thought I'd reach out to the community and find out if any of you awesome people have a GC I could get in touch with!

Thanks all and happy investing!

@Nicholas Johnson Thank you for the well wishes!  I do want to comment on the flat roof comment being a red flag.  Don't let that turn you off to opportunities.  There are some fairly inexpensive fixes to flat roofs.  First off, flat roofs are never supposed to be truly flat, which I'm sure you know.  Builders and contractors don't always execute this very well, but there are ways to create slope in order to achieve positive drainage.  One of them is EPS foam board, which is a rigid foam board that can be tapered to create slope (code in most areas require a roof to have a 1/4" : 12" slope).  The hole in the roof, yeah that is a problem haha I'll let you know I'm an exterior general contractor and if you have any questions about exterior components of a property I'd be more than glad to answer them to the best of my ability for you!

I guess all of these larger issues came to light after you went under contract and had the property inspected?  Sounds like you had a good inspector that spared you from some real headache and potential financial turmoil.  Thank you for sharing.  I haven't yet bought my first house hack but when I do, I'll definitely be considering what I can do myself and what would require specialized contractors.  HVAC, plumbing, framing, foundation work, etc., that's a red flag to me unless it comes at a GREAT price!

Hi Dorothy!

I am an Exterior Restoration Contractor here in Denver and would love to help you with your project.  Feel free to call me any time and you can give me a little background about what your needs are.  My cell number is on my page!

Thank you!

 Marc,

Congratulations on the pre-approval! I'm sure you and your family are very excited!  I'm glad to hear you're looking at a solid timeline to get to investments.  My timeline is still up in the air, but I'll be able to pull the trigger one day. 

Thanks a ton for the well wishes and I hope your transaction and future transactions all run as smoothly as possible!

Adam