All Forum Posts by: Barbara G.

I see a lot of investors on this site agreeing with each other about being able to get discounted labor from top contractors but I don't see one contractor saying he is happy to work for less.  If he wanted to work for less he would be working for a contractor and he would not be in his own bussiness.

-closing cost at $10,000 (will attempt to have seller pay)

- $11,000 in selling agent commission (in the event that its sold by outside agent)

Total expenses (purchase, holding, points/int, rehab, and resale): $400,500

Min comps are are $440,000 

Have you included the closing costs of $10,000 and the $11.000 commission in the total expenses?

"concern is the shower pan in the bathroom caused flooding and destroyed a portion of the bathroom subfloor, I made sure to mention to my inspector that I need him to verify that there are no signs of mold under the home. "

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Does your $20,000 rehab estimate include the bathroom remodeling?  It sounds like a low price  for all this renovation.  Can you price out your renovation budget by the room or the job so you can get some more accurate input?

If it takes longer to flip how much more will be the holding costs be?

You are asking for the impossible.  Good contractors want to be paid well.  You are looking for a contractor that is willing to make less of a profit.

You are looking for toasted snow flakes.  

The contractors you are looking for do not exist.  You want to make money by paying your contractor less.  It just will not happen.

Perhaps if you want to General contract the job you can save something by hiring your own sub contractors.  A manufacturer can give you a break on large volumn of a manufactured item.   On the other hand  when you are talking about paying for labor you are not going to find this master contractor that is willing to take less for his  labor so you can make more.  A good contractor  just does not need you.

"Yearly rents received $49,525. Total yearly expenses including advertising, cleaning, maintenance, insurance, professional fees, management, repairs, supplies, taxes, utilities, depreciation= $26,652."

What does depreciation mean here???

Depreciation is not a deduction so why is it listed as an expense?

You say "NOI= $32, 038"
Where does this $32,038 come from?

How much do you figure your renovation costs for this complex?  Are there any major costs?

If you are figuring $10,000 in renovtion that means your cost is  $310,000

What is your monthly income from rents and what ever else you get income from on that property.  How much rent does each 2 bedroom get and what is the rent for each eficency.  What additional rents for storage etc do you get by the month and the year.

Did you say everyone was seperatly metered?  Do the tenants pay their own water bill?  Once those numbers are figured in we can all weigh in

I am confused about what your numbers:

Are you saying the house cost $21,000 and it needs only $8,000 in renovation making the total cost $29,000.   If so  Well at $1,000 rent that sounds excellent.  Thats more then the 2% rule, more then 3%. So no problem just a big WIN if that's what you are saying.   

About the barbed wire fence first see if there is any way you can utilize some part of it like keeping the back of it or the sides of it and landscaping in front of it.  I would think about it before I take the whole thing down.   I love fences.

About your  extra lots you have to get a prices on pre fab houses and mobile homes and the cost of wells and septic systems  before you know whether it makes sense to develop them.  Once you know what the rental situation or what you can sell them for then the decision will be easy

Yes you need to estimate the repairs.  Its the roof and plumbing and  water heaters and updating the electrical.  You say: "Both sewer stacks need replacing. Bedrooms each have only 1 outlet, using extension cords, should add at least one outlet per BR. exhaust from furnace leaking into basement. Lower needs new tub surround"

So get estimates on a new Furnace, and new Bathrooms, updating the electrical.  $40,000 sounds at a minimun but ask a contractractor 

Zillow says it is estimated at $181,000 so that's a number you can figure from. 

 At  $150,000 cost, plus $40,000 for renovation  that's  $190,000 total cost.  The income is approx $1,700 a month.  Sounds like,  just at a rough number you should be paying no more then  $130,000 for this house,  and that is only if the renovation cost will  stay at $40,000.  You need a more accurate renovation estimate.

We have renovated bathrooms and kitchens while the tenants were living in the apartment.  People paint all the time when they are occupying their apartment.  It just hurts for a little while

How old is the house?  When was it built?  What estimates do you  have for the renovations needed?   Is it a war zone in Waterbury?  What is the street like where the house is located?  And what are the streets like,  near it that you have to travel past to get to this house.  When all is said and done when you conider the price and the renovation can you get something for a comprabe price in a better area?  

How much will it cost just to renovate  the 3 kitchens (with all  9 + appliances plus cabinets and counter tops and floors)  and the 5 Bathrooms?  

Of course you should talk to him.  How dare he treat an animal like that. He is not to leave a dog out in the cold.  Why in the world does he want another animal to torture?

Tell him if he wants a dog you have to know how he is going to handle all the things that made this dog's life miserable.  He needs your permission to get another dog in that apartment

Hi Chris Thanks for your input but if we pay $117,000 for the property Cost 72,000 + renovation $45,000 = $117,000)  and the rent is $2,000 that is more then 1% and close to 2%.   It's also OK on the 50% rule.

You say "Your agent can also help you figure in Capex, Repair Cost,"

Everything is new so how much can Capex or maintanence cost?

"Vacancy, Taxes, and other fees"  

Well we can figure that out!!

"to ensure you have sufficient cash flow."

"I don't know the area you're in at all, but these purchases seem like the cash flow may be light, when all expenses are taken into account. One of the biggest problems new landlords can face is over-leveraging and then being pounded with unexpected costs."

The cash flow of almost 2% sound OK to me or what am I missing here?