All Forum Posts by: Anne W.

@Bruce Woodruff with all due respect, construction is not so high and mighty that a woman wouldn't comprehend the amount of work, knowledge and cost. You reminded me how expensive the rewire is and I considered the worst case scenario. You reminded me of the old plumbing, and I paid attention to it when I checked on the house again. However, I don't think I have to tackle ALL deferred maintenance items now. With $20K credit, I can go ahead with the purchase. 

No need to cyber bully me calling me "waste our time". I appreciate everyone's feedback. They are extremely helpful in terms of presenting a worst case scenario and sharing different perspectives. In the past few days, I had time to research everyone's point on big-ticket repair.   @Joe Villeneuve Joe's comments also got me really thinking about CF. I am considering selling my other rental next year that is twice the value of this one and only rent at 10% more. 

@Bruce Woodruff basement faux wood panels are in the place of drywall nailing into studs. If we need to rewire, demo faux wood is not a big deal. Faux wood panel is popular in the 70's, so I think the basement was finished then. 

In order to be CF big positive in my targeted neighborhoods, houses needs to be under 400K. Since January, I have seen a murder house (younger son killed mom and paralyzed older step brother), a meth-cooking house still tested positive in the basement, a hoarder house that every inch needs a rehab. Those are listed at 400K and will be sold above of course. In February, I saw a house that is in a C neighborhood and later found out more than 10 registered sex offenders within 1-mile radius. Even I have a PM, I still want to see the property at least once a year. I don't have what it takes to invest in those areas despite of amazing CF. 

Also, I do think current valuation is high. CF houses in C neighborhood may be most frothy. Too much downside risk if I buy there now.

@Rick Albert  some of the $15K comes from seller agent's commission. In addition, I got $6K from my own agent. Cosmetically the house is ready to rent. $3K/month.

1) sewer line: we are having sewer root blading and re-scope again, then decide if we need a replacement. 

2) plumbing: main shut-off is copper, visible plumbing in bathrooms are copper.

3) electrical:  electrician coming tomorrow. Electrician panel is 100 amh. On the phone he said 100-year houses in NY don't need rewire the whole house. but do need to make sure all outlet grounded and GFCI.  

4) HVAC: furnace from 2007, ducts, too. AC from 2021

5) sinking concrete sidewalk: I am going to see if polyurethane foam can lift the slab.

@Kathy Henley Thank you very much for the feedback! You addressed every concern so straight forward and suggested timing of repairs! Sorry for the late reply...I ended up cross-posting this and missed your reply. 

https://www.biggerpockets.com/...

Update: I was able to get $15K from the sellers. 

Thank you all for providing your input. It really helps me see different perspectives. I have only one rental which was my primary residence for 10+ years. 

Emphasis on CF, expense on behind-the-scene stuff (concrete repair, insulation, electrical, plumbing) not translating to rent, appreciation may be speculation, etc. I am going back to ask credits from sellers. If not, I will move on. 

@Joe Villeneuve Hi Joe, I thought for SFH, people want to live in a neighborhood that is primarily owner occupied. If there are so many rental homes, isn't there more competitions, too? new investors have to charge a rent that gives them CF. Not if you bought the house 20 years ago.

@Bruce Woodruff thank you Bruce. The concrete is outside of the garage wrapping around to the back (where the AC is). I am familiar with fix-it-up. I didn't use GC for the remodel in my own house. With the current economy and how high the valuation is, I want to stay in a relatively good location, rent it out quickly without much upfront investment. It's just very hard to accomplish all three. IMO, doing fix-it-up is risky now. Buy at the highest point and dump $$$ to get it ready.

@Joe Villeneuve  thank you for your feedback. I didn't consider old house maintenance eats up the CF.  The house is in a primary owner-occupied neighborhood. I was thinking as long as I am breakeven on the CF, I probably will get appreciation given the population inflow and how expensive the surrounding towns are. 

@Rick Albert  The house is sold "as is", we can object inspection and walk away. I am not sure if I can negotiate the price down. the seller disclosed asbestos, lead paint and have testing reports. This is a mature neighborhood, 1950's. The inspector is local and he said old houses have these issues and this property is not too bad, he would rate 3.5/5. I hired him, not an agent referral.  

My target areas have 50% appreciation since early 2020. It's very difficult to get positive CF. I know I probably should've looked at other towns, I just don't feel comfortable. My first rental was my house for 12 years. I guess my mindset has not shifted to a true investor's.