All Forum Posts by: Alex Huang

Hoping to get some feedback from some others on what they would do in this situation. As I'm working on rehabbing my rental, I am now at the stages of picking out materials.

I've visited the obvious big box stores and have also worked with some area flooring specialists, but I am now stuck as to which option would be best. 

Aesthetically, they are all about equal to me, so here are the specs for each of my options:

Vinyl A - $0.99 sq ft glue down planks. Floor is 2mm thick

Vinyl B - $1.79 sq ft glue down planks. Floor is 3.7mm thick and regularly recommended in the BP forums (Allure Traffic Master)

Vinyl C - $2.79 sq ft floating vinyl. Floor is 7mm thick and was highly recommended by the Home Depot associate, who cited that several of their investor clients choose this floor

My initial reaction was to go with Vinyl A. It's a rental and even if it feels a little cheap, it looks nice and is the most affordable. My concern is durability at 2mm thick. Does any one have any experience working with flooring that is this thin? 

FWIW, the property it is going in is in an A area and will rent for $1200-$1300/mo. It's a 4/2 brick ranch.

Thanks for all the feedback.

I went through the county auditor's website with the hopes of finding the purchase prices for each of these homes (they were all bought in 2012-2013), but unfortunately I couldn't find the info. I was able to get the "value history" on the houses (not sure how valuable that info is) and collectively, the total for the properties is $238k.

Could some one comment on financing options for an arrangement like this and what sort of an interest rate I could expect? In my initial calculations, I just used the default mortgage calculator that Google provided, which was at 3.92% over 15y, but I imagine the circumstances are a little different and will require something beyond a traditional mortgage.

I was approached with an opportunity to buy a group of about ten single-family homes. The homes have long-term tenants in them and are all occupied. The private investor is looking to exit the space, so I'm trying to assess the situation.

Numbers:

Cost: $250,000.00

Monthly Rents: $5,174.00

Monthly Tax & Insurance: $1,076.65

Property Management: $517.40

The obvious other things to consider and investigate further are the CapEx and vacancy, which I don't know much about. My hope would be to get the info on the age of the HVAC, etc per unit. What other things should I be looking into and what other due diligence is mandatory in this circumstance?

I ran a $250k loan through a mortgage calculator. At 3.92% interest over 15 years, it means monthly payments of $1,839. Is that a fair guesstimate? Or is it a different beast since these are individual housing units?

Thanks.

I wasn't sure if "winterizing" protected pipes from freezing or if it simply reduced the likelihood. It sounds like it protects it completely which is good news!

With these historically cold temperatures in the eastern part of the US, I'm curious to hear if there are any additional things to look for when dealing with vacant properties (with no utilities on) regarding damage?

I'd love to hear from some people who work with foreclosures in cold areas on their experience.

Thanks Ben and every one else.

I think this is the best piece of advice for me. I have been employing the tactic of using the listing agent for the offers I've made thus far (for the reasons of double commission), but I would probably be better suited to use an agent myself to ask these questions and ensure I'm protected.

 Thanks.

So if I find some things I want fixed, and the seller refuses, then I am entitled to walk and get my earnest money back right?

I am still not 100% clear on the offer and inspection process and was hoping to get some clarification. I suppose the easiest way to have any misinformation addressed would be to lay out what I think the process is:

1. Property XYZ is listed on the MLS
   
2. I am interested in the property, so I go ahead and contact the listing agent and make an offer, stating that the offer is contingent upon inspection and attorney review
   
3. Once a price is reached, I get the standard 3-7 days (whatever is agreed upon) to do my inspection, etc. This blocks other people from making offers and puts me in the driver's seat to getting the property.
   
4. If my inspection turns up something catastrophic (eg termites, mold, etc), then I am able to rescind my offer and get 100% of my earnest money

I guess my biggest concerns are:

• When is my earnest money at risk? My understanding is only when I, the buyer, go beyond my permitted window to conduct an inspection and try to walk away from the deal? Or if the inspection is done and nothing major is discovered to justify walking away?
• I see a lot of terms like "as-is". Is that synonymous to no inspection allowed? Is the buyer always granted the right to inspection (unless otherwise explicitly stated) for all MLS listings (foreclosures included)? I know Sheriff Sales are an exception, but wasn't sure about other bank-owned stuff.

I think the majority of BP'ers view Real Estate as a good return / safe and relatively risk-free mechanism for investing. 

There is certainly another segment of RE investors who bank on speculation and appreciation. It's the higher-risk sector of investors, and while there are many who do it, it just doesn't gel with the BiggerPocket's culture.

I would compare it to those who throw their money into mutual funds - expecting a safe (albeit smaller) ROI vs the crypto-currency or penny-stock subgroups.

It is constantly mentioned in this forum and on the podcasts, but BP'ers are looking for the singles and doubles of the market, not the home runs or grand slams.

@Jay Hinrichs

Thanks for the info.

Can you give me a little more information about the process? I intend to contact the owners via mail with a letter simply stating that I buy homes, pay cash, with a contact number if they are interested -- something very casual and not very aggressive.

Assuming that I get a bite from the owners, then the next step would be obviously discuss their goals in a sale (eg how much cash for the keys to your house). Once that's agreed upon, do I need to hire a lawyer to cover all the legalese? Once the title transfers, is there anything that I would need to do to wipe the house from the upcoming auction?