All Forum Posts by: Aubrey Ford

 Depending on the nature of what needs done, *in general* a good contractor will cost you about the same thing as you acting as the GC yourself because they get better pricing from subs than you will get, and pocket the difference as profit. The difference is they're the ones hunting down all the subs and following up on shoddy work rather than you. That said, these days most good contractors are so busy you might be deep in line trying to get one to run a project. 

Saying that you are not handy in the least leads me to believe you could easily be snowed by bad subs and thus should have a good GC to look out for your interests. 

You want to hassle with that for $700 a month? That's not a good profit, and you are stepping into a can of worms. Speaking from experience. A lot of it. How much do you plan to pull out of that $750 mo for your Capital expenses? I would suggest you put away $1000 mo for future repairs and maintenenace. Once you take over operation of the system, you will be required to keep it running (by the County Govt)

You're losing money already and you don't even have all of the true numbers. I'll bet she's lying to you so far......and you'll need to carry a pistol when you go meet with the water thieves, people don't like having their water shut off. Ask me how I know all this.....

is the actual wellhead location relatively adjacent to your land, by chance? if yes, certainly I'd pursue a deal. if not and you're buying via (easements), little to gain? (on a small system- didn't mention the number of hookups but I'm guessing 2-3 or certainly less than 10?)

talk to the dept of health first (records requirements etc), establish what upgrades/maintenance required, line up a reliable repair/handyman/type person, consult lawyer, and then make your offer, see if you can buy the land it's on via lot line adjustment (ideal scenario).

a lot to be aware of, such as system upgrades or county code changes bringing in the requirement to add metered connections to an older small system, for just one example.

Otherwise- owner doesn't want to manage, I doubt you really do either but could be wrong.  Maybe you can convince everyone involved to convert to a community owned system,
with a shared maintenance agreement, reserve funds,

Just need to find the smoothest path forward to needed upgrades like an above ground cistern, pumps, backup generator, better filters, or whatever to make the system function 100% of the time

$1500 is minimal, spend it if that's the way forward. Pay for the materials and hire the labor yourself if needed/possible?  I'm sure there is a compromise easily in there somewhere where you can pay a licensed business to do the work and receive an invoice for your $1500/etc. The least I've seen spent on a new shallow well (recently) 18-20k, of course that's regional but still. . 

Not sure I understand what you meant:  the TENANT wants to make a deal?

If you meant the neighbor wants to sell, buy the property if you can.  Once you own it, take some free cash flow and get the wells separated.  

By doing so, I believe you'll increase the value of both properties.

@Aubrey Ford, I'm a big fan of this approach. However, one thing to remember about this strategy is how the prospective tenants on the main level/unit react to a separate tenant living below them. Some renters are not okay with this aspect and will overlook your property once you disclose this information. Nonetheless, many will not mind, but these are the folks you need to be careful about, as there's a good chance they will be somewhat "inferior" tenants. As always, proper screening and background checks are crucial. 

Moreover, I assume the utilities are not metered separately. Please keep this in mind and confirm the investment is still sound since, technically, you'll be responsible for utilities. Considering this, how would you be able to handle the potential objection of the bottom unit tenant complaining about AC/heating since it's likely that the main unit tenant will have access to the thermostat? Furthermore, what if there is a dispute over parking between the two? I would assign parking spots respectively before leases are signed. 

Best of luck!