All Forum Posts by: Aroldo Villarreal

I hired a contractor to rehab a rental home I purchased back in September. For no reason, the job took two weeks longer than expected. The tenant was scheduled to move in on November 1st and he told me that the job was going to be done no later than October 31st. Originally, it was supposed to be done on the 15th of October, but took two weeks longer. November 1st comes around and I show up to the house and it's not finished. They are working as fast as possible to finish at least the inside so that the tenants can move in.

The contractor assured me that everything would be done on by that day. I'm a teacher, so it is hard for me to get out to the home and check on it daily. Anyway, two days later he came to pick up a check telling me that everything was done. Me, being new to RE investing, being naive as well, gave him the check without checking first. Also, in hindsight, I should have also made him sign a contract stating the date which he would be done and also charging him for every day he took after that to complete the job. 

It has been a month and a half now that he's been either avoiding my calls or telling me that he's doing it on a certain weekend and now he doesn't show up or answer his texts or calls on the day he is to show up. I'm fed up with it. What can I do? Do I have to hire a lawyer and spend days in and out of courts? The total estimated job left over should be under $1,000. I have to say between $500-$800. 

Any help is greatly appreciated!

Benjamin Vargas did a good job for me. I've used three different contractors so far and he's been the more reliable of the three. Because of a flea infestation that was found in the home, the project took two weeks longer than expected. Otherwise, he would have finished the job on a timely manner. Message me and I'll send you his info!

@Brian Gibbons I have neither. I am looking for a good CPA in San Antonio though. I had never heard of a CCIM.

@John Hamilton I will ask him for the books and take them to an accountant, once I find one I want to use. As for the lawyer, do I just google RE Lawyers? 

I don't know if there's anything owed on the equipment, didn't ask him and never crossed my mind. 

The loan would be for 30 years. The vacancy is maybe one month a year per unit, if that. I would be managing the property myself, but should factor in property management just in case I want to do that for the future. 

Thanks for all these great questions that slipped my mind!

He gave me the rents for each unit and the taxes look pretty close to what I pay on my SFR's. The insurance seems low, but I don't know if that is because he owns them outright since I pay about $800/yr on a SFR.

I'm considering buying this multifamily deal, but don't know if the numbers are good enough. I know multifamily is evaluated differently than SFRs, but don't know much about it. Below is the owner's description:

I have owned this property for 9 years but now living out of state. Unit produces $3100 + laundry mat income has separate meters. Duplex units are large 2/2 units occupied, triplex includes 2 large 1/1 units and an efficiency. In nice quiet neighborhood, I lived in one unit for a few years before I got married and really enjoyed it. *** just did a total remodel on duplex to include all restrooms including tile throughout and new kitchen cabinets and granite counter tops**** Asking $220,000. *** will consider owner finance ***

He is willing to owner-finance and below is what he emailed me:

            Monthly of $325.73 

So, from what I see, assuming that I get $200/month of laundry (is this too much?), I would be left with $1,586.77, minus 30% of vacancy, repairs, and cap ex savings, I get $1,110.74 of cashflow/month. 

Assuming I pay $6k of closing costs, I would get 39.8% COC return.

This seems like a great deal, but I'm new and I know that I'm missing something. Please dissect this and let me know I'm missing. 

Thanks in advance!

What are the must-know formulas that long-term (rentals) investors must know? For an easy example, everyone needs to know cashflow, which looks like:

Cashflow= Rent- all expenses and reserves

I started investing and educating myself at the beginning of this year, so just want to make sure I have all formulas and numbers I need to know. 

I hope I get many!

Sorry for this newbie question, but I'm new to this and totally lost. What does this mean for investors? Does it mean that we should wait till 2024 for us to find good deals? Does it mean that good deals will be scarce? I just started investing this year and would hate to know that it wasn't a great time to start investing! Thanks for your patience.

Thank you for your help! Now, how dow I look at their income collectively? I should run a credit/background check on all of them right? Would that mean that I should collect an application fee from each of them?

I got a call from a person interested in one of my properties I just closed on, which is still a month away from the rehab being done. She sounded a little hesitant about the requirements but she said that she, her husband, and her 20 year old daughter all work. Let's say that, hypothetically, none of them qualify individually, but they do qualify if they all apply together, would you allow them to "qualify"? What would you do in this case? 

@Dan Schwartz I'll see if I can message you through BP. Yes, I would greatly appreciate the spreadsheet! I didn't see you message until now because I was typing the other one.