All Forum Posts by: Austin Bull

I work in the trades as a plumber. I'm not experienced with this particular scenario, but having done extensive residential plumbing projects, we typically have estimates done before we start, and a price agreed to before work is started. The only way prices change is if we come across something after we start that we could not foresee. After the agreed price, then I have heard of an initial deposit just to help the contractor get supplies and to show the contractor that the homeowner is in it for the long haul. But again the price is already determined.

I hope some more experienced people comment. My first thoughts were to get some kind of lawyer. There's no way you could be on the hook for $57,000 if you did not agree to that. I don't think he has a good case. I think he's bluffing thinking you will get rattled by all his nonsense and just go ahead and give him the 57k. I just hope that contract gives you an out.

Nice work, I hope you find some good tenants! How are you screening tenants? What are your requirements?

I'm in the same boat as you but in Arizona. I'll be curious to see what people say..

@Erik Estrada Yes I completed by bachelor's degree in Business Admin. My work is in plumbing however. Doing some research I found that sometimes lenders count college education as work if it's in a related field. Is that true?

Honestly I have no business giving you advice on this because I'm a rookie in real estate and I'm from AZ...but I'm saying its just a risk. It could not flood again for 50 more years. Or it could flood next year. The question is will you make enough on the property to cover the damage when it does flood. Flood damage probably is not cheap. As a plumber I saw that first hand. Do they have insurance for that in Florida? But if its in a hot market then it might be worth it. Or if its like a short term rental that would be cool. I feel like it'd be busy.

PS: If its on the beach that beach might be gone in 20 years if global warming is real..or is that just a myth?

Quote from @Jeremy H.:

Quote from @Calvin Matthews:

Haha thanks for the reply. This is for a single family home so it's residential. I found a video that our real estate agent took over 1 1/2 years ago of the first floor and took a screenshot of the water heater; I don't know the exact details but does this screenshot help identify what type of water heater we currently have? Also will you clarify what 3/2 and 2/1 means? Thanks for including a lot of details!

I am talking about the size of the house: 3/2 would be 3 bedrooms/2 bathrooms - gives you an idea of how many people will be using the water. Same goes for a 2/1 - 2 beds/1 bath - obviously a smaller size and thus less water consumption and so you don't need a big water heater. A shower flows a 1.5-2gpm - so a 20 gallon water heater for an affordable place is fine for a 2/1. 

For a 3/2 you generally want to go with a 40 gallon water heater - I would be 99.9% sure that is what is pictured. Can't tell if it's electric or gas powered but it doesn't make a difference in price - either plug into an outlet or connect the gas line - easy peasy.

I mean this is seriously as simple a job as it gets - DO NOT go with that quote. This entire process should cost right around $1100-1200. This is honestly a DIY, but since it is a long distance property you'll need a plumber OR handyman. This is likely a 2 hour job but I'd overestimate for 4 hours in case it's some genius that comes over. The PM should NOT be charging you extra to source the hot water heater - lowes or home depot will deliver for like $60-80 depending. Or get the PRO card and it'll be free. 

Don't tell your PM to ask around - ask them why the eff you would even consider paying 5k for a $1200 job? Ask them why did they pick this plumber? You cannot trust the PM after this. Ask for a picture of the hot water heater tag to see the age etc 

It's electric, you can tell by those two compartments on the front of the tank. There's a thermostat and element in each. Jeremy is right about Home depot. If you supply the heater it lowers the price charged by the plumber. Its called a "customer supplied" heater. If the plumber has to go pick one up it'll be more expensive.

I will say though, that heater bought at plumbing supply stores are a little better quality than home depot ones. In AZ we have plumbing supply stores like Ferguson and Van Marcke ect. But the Home Depot ones will do just fine too. That's whats in the house I'm at now and its worked great.

Unless you're in an expensive state, that PM has either got a couple things to learn, or ulterior motives?

I agree with Jeremy H. I don't know what state your in, but I'm a plumber from Arizona. What I would do is look up respected plumbing companies in the area and get another estimate. If its not leaking RIGHT NOW and its still making hot water, you have time to get more estimates. I'm assuming this is a common 40-50 gallon residential electric water heater. How does he know its at the end of its life? Typically that shows up by a leak in the bottom of the tank and water all over the floor. This can be caused by the old anode rods disintegrating and rusting on the inside bottom of the tank.

If the heater is 6-10 yrs old and you haven't maintained it by replacing the anode rods, you could go ahead and replace it just to sleep in peace at night. BUT, for those prices that better be the best tank in the world, made of pure gold, with all the bells and whistles (a new ball valve on the cold side, new flex lines,a new expansion tank, new drain pan, new copper piping to the heater, and a new re circulation pump).

A basic new electric water heater install package (40-50 gallon tank) should cost around $1800-$2,500 after its all set and done. Its would include a new tank, cold/hot flex lines, new T&P line, new drain pan. They can get up in the $3500 range if you add items or "packages" like the expansion tank(could be needed), recirc pump(could be wanted), and "leak detection devices"(scam). Or if you get a bigger tank like a 75 gallon it could cost more, but if you don't already have it, you probably don't need it.

If you are paying $4800 you are already almost to the price of tankless water heaters. And I wouldn't advise that for you, being its electric.
Just get another opinion.

@Account Closed Thanks for the input, I will definitely look into those other options. But yes, I agree, the best way to go about this is just to ask the lender. How did you find your first lender? I know Bp has a tool that can match me with lenders. Have you used that tool? I'm thinking of just asking the real estate agent I'll be working with for a recommended lender..

I'm looking to make my first property purchase. I've been reading that most mortgage lenders require a 2-year history of employment. Does that mean in the last 24 months from now? Or the last two complete W-2 years? I have been working for the past 3 years, but off and on as I have made a career change, and had schooling mixed in there. I definitely have not been working every month for the past two years. Will this effect my chances of getting a loan? Thanks!

@Josh Young Thanks for reaching out. Gilbert is a great area for a lot of reasons.. it's where I grew up and its really grown! Thanks for the advice as well, to get an agent that is an investor also. Also congrats on your real estate success so far. A friend of mine just recommended me an agent whom I am going to inquire about, but I will not forget about you!