All Forum Posts by: Adam Anderson

Here is a site from a legal aid site in Michigan.
http://www.foreclosureresponse.org/?page_id=51

I think the important thing to learn from this is to understand what you are signing and agreeing to before you sign. Read and understand before you sign.

I had to spend a month’s worth of rent because I didn't pay attention to what I signed. I found a place that would rent to me for 5 months while I was doing an internship while in school. I thought it was clear that I was only renting the place for 5 months because that was what I stated when I rented the place, and I was going back to school. Well I failed to see where I was supposed to give written notice a month before I left. It had an item in it that the lease would go to a month to month at the end. My last month they call me and ask if I was my intentions were and basically I was on the hook for another month’s rent.

Unfortunately you have a bit of a litigious mindset when it comes to renting and leasing. You can't assume that the person you are renting from is going to be completely honest with you. You need to make sure that you abide by what you agree to otherwise it can cost you.

Whatever you do make sure you take some time to prep it. I would recommend using a pressure washer to remove any loose material or dirt. If you use a cementious material, make sure that you wet down the wall before applying the product. You don’t want any free water, but you do want the brick to be wet. Otherwise the brick will suck moisture out of your stucco decreasing its strength.

800 sqft is 89 yards which would make it $267 dollars. Personally I would buy the tool and do it myself. Any excuse to buy a tool.

You can cut down on the amount of water you use with pex, but this is if you use a home run system as opposed to a traditional. To supply a bathroom, a traditional system will often run ¾†line from the water heater to the bathroom, and then branch into 1/2 “ lines feeding the sink and the shower. In a home runs system you usually run 1/2 “ line from the manifold all the way to each item. The result is less water being run before getting hot water. While in theory this can save you water and energy, 20% seems high. You could also do a home run system with copper and see the same savings, but the installation costs would be higher.

Here is an article at HGTV that gives a better explanation than I do.
HGTV home run plumbing

I thought the purpose of forums was to get others view on things, not to ask a question and answer your own post.

Unless you are paying for the hot water I wouldn't even consider them. Even then the payback is 3-7 years.

I also wouldn't consider them unless you are running on gas. The electric models do not heat the water fast enough to provide how water for an entire house, so if you are running on electricity, you need several units.

You may want to look into "LEED For Homes"
LEED construction is a rating system that has been use for commercial building projects to rate how environmentally friendly a project is. Points are awarded not only for items on the building such as a rain water collection system, but also the construction process it's self such as sorting trash to be recycled during construction. LEED for Homes has taken this program from commercial projects to residential. Based on the number of points projects are rated bronze, silver, gold and platinum.

You are purchasing the property for $240K with $30 down, $20 due when you sell, and the remaining $190 carried in a mortgage. Is that correct?

You anticipate $10-12K to fix it up, and to list it at $359K.

To do seller financing you would have to pay off the mortgage and pay the other $20k so unless you have another $210 it really isn't an option.

I would not recommend renting because you are not making enough money in rents for it to cash flow.

I would just sell the property and take your profit.

Do you know how long it's going to take to fix up?

The 2% rule doesnt tell you how much the property is worth. It tells you what you can pay for the property and expect to make a profit.

A 350,000 mortgage with 6% interest you are looking at mortgage payments of $2,100 a month

$2200 per month in rent
-$2100 mortgage payment
-$1100 per month expenses
$1000 per month loss

There are some areas that you can't find properties that will cash flow.