All Forum Posts by: Andrew S.

Hey community, I'm a buy and hold investor but looking at a potential flip or BRRRR deal to acquire another property or cash for future rental. I currently own multi-family properties and not as fluent in the SFR market in my area. I'm looking at a fully wallpaper and carpeted house that needs a full cosmetic rehab. Asking price $185k w $15k roof credit (in a way $170k but I like the credit at closing). I could renovate for a rental for $ $50k including contingency or renovate for a flip for $65k (includes $15k cost for new roof). Difference in renovations include adding a bathroom, replacing cabinetry vs re-painting, and nicer finish. ARV is $285 - 300k per my experienced realtor who's a 20+ yr investor as well. I'm conservatively running numbers at $275k. Might be too conservative. My holding costs would be $5k to 10k depending on adding a bathroom. (most of the work would be DIY). After realtor fees, it looks like I'd profit $45k if I could purchase for $150k with $15k roof credit. I'd have to fund the purchase with HELOC and my ongoing W2 savings. "cash" in would be $100k between down payment, holding costs, and rehab. If I kept it as a rental (after 70% refi BRRRR) the mortgage would be the rent, I'd negative cash flow Maint, CapEx, Vacancy, and self managed. I'm nervous to submit an offer because I'd be funding the rehab with a 0% CC and ongoing savings from my job. I recently purchased a 6 unit that drained my savings so I'm hesitant to overleverage myself. Thoughts?

I would consider using a different listing agent and property manager. It's your property, I'd personally advertise to fill the vacancy, whether or not you have PM. Install a couple exterior lights and a fence if the security is that big a concern. It took 20 showings to get it rented your condition is probably not what they were expecting. I assume the price point was reasonable for them to look at it. Consider a minor renovation?

Scrub carpet by hand with sponge in Odeban carpet cleaner ($10 @ HD) & water mix. Get fairly wet.  Run oscillating fans or rent the blower fans for 1-2 days to air out.  Run an ozone machine for 30 - 60 min (<$100 on Amazon) .  Buy them a couple of the plug in air fresheners.  Mildew smell will be gone. 

I house hack and had similar unreasonable requests by my roommates since I owned the building and am handy. Can you remove this large cabinet and build a built-in closet with cabinetry around it? Can you add more lighting under the kitchen cabinets? Can we pay rent a month late since we want to go on a month long vacation this month and plane tickets are expensive? How much is the mortgage? Can we just split the mortgage payment instead of a normal room rent price? I want to get a dog, can you install a new fence around the yard?

Treat it like a business is my best recommendation. Tell your friends that you have a business partner (BP community, your dog, an old friend, family member) and after consulting they decided that doesn't seem like normal requests. I'd possibly require all requests to go through a tenant (non-parent) so that you're not dealing with 12 tenants. 

Why do you need to replace the piping? Roots growing through it? Collapsed? or just clogged with years of debris? Have you seen the video from the scope? If not, consider buying a scope camera off Amazon for < $100 and do the scope yourself. Show those pictures and/ or video to a couple plumbers to get the best scope of repair. From a quick google search there are foams, chemicals, and augers to rid your sewer pipe of branches, debris, etc.

Hey community, 

Are most people maxing out HSA, Roth, 401k, and using the extra for real estate? I've been maxing Roth, HSA, and half my 401k. My real estate returns over 2 years (very new) have been well above stock market. I have a high savings rate but considering not maxing my HSA, staying at half max into 401k to get more for down payments. Need to get into the BRRRR cycle I think. Thanks

I purchased a mismanaged property this summer. I spent $1500 in parts over 6 units (not much) to complete most of the tenant requests and a couple of exterior improvements. The tenants now have a good relationship with me it seems and all pay on time. 

Your description of the tenants make them sound potentially needy in the future with bartering rent for their requests. Hope a little work can improve their situation. 

On my historic estoppel, there wasn't any line for ongoing or needed maintenance. I think it'd be a touchy subject and probably not worth officially bringing up during closing. They'll tell you everything they need and want after closing. 

Add more vents to your roof to cool down your attic. Soffit vents and/ or roof vents. Easier to install in summer obviously. Roof rake the snow off. Roof electrical tape works but also easier to install in summer pre ice dam. They make ice hockey pucks to throw up on a roof to melt paths through ice dams. 

Are there any good YouTube videos for how to do this? 

Lay LVP or laminate right over that, looks fine. Use a standard flooring transition molding between the 2 heights of floor. Use an underlayment with the planks. If they're worse than pictures show lay luan down first