All Forum Posts by: Barrett Dunigan

@Patrick O'Neill - I know and have used (inspected a Triplex for me) Chris Earley at Inspect-it-First.  Feel free to PM me for details.

As Steve said, you do use NOI to figure out your cashflow, so you do care about it. Cap rates on the other hand will be important to understand when purchasing or disposing of an asset. Understanding what cap rates are in your area will tell you what the market is willing to pay. A starting point, but all part of the game.

@Loren Whitney tough to tell from the picture and think you would have to look at it first hand.  As others have said, look for which side of the glass the damaged appears to have been caused.  There will be tell-tale signs even if it is single or thermal glazed.  If it appears to be from the interior, also look at the blinds to see if there is any damage there as well.  Either way, you will want to make sure the repair is done properly and your contractor can provide additional insight as to the cause.  You can then also discuss with your tenants any concerns of liability upfront.

To further the 'lift and shift' discussion, WSJ had an interesting article on the young driving an urban rebound.

Link:

http://www.wsj.com/articles/young-drive-an-urban-rebound-1420250736

This is still relevant to @David Krulac original stats on the moves as there may be a relationship to those states seeing an influx with cities there. 

I can only speak with some knowledge about Philadelphia and the surrounding area.  We are a Meds and Eds city where not much changes, particularly office rents.  However, construction expenditures are projected to be in the $4-$5 billion (yes with a 'B') over the next 5 years.  Over half of which is just from the medical/education side (CHOP, UPenn Health, Temple, Drexel, and surrounding suburb schools).  While Philadelphia has seen an increase in population over the last decade, PA and Philadelphia has struggled to keep those graduating from staying in the state.  Part of the problem (noted in RE and business forums here) is the state of the primary educational system and the high cost of the business tax (including the additional wage tax on employees). 

I'm not sure that it changes my RE investing.  Just confirms that I need to understand my locale and how its trending. 

If you are looking for stability, I wouldn't use OSB, use plywood.  There's a reason why you never see OSB for subflooring and only for sheathing.

We have a tankless water heater and have not heard of this occurring with them, but we do turn off our main water valve in the house when we leave for any extended period of time.  We've had toilet valves go in the past (they don't make them like they use to), and the force has shifted the toilet lid.  I hate to think what could happen if this occurred while we were away for an extended period.  This is also a great reminder to replace the hoses to your washer every 5 yrs, and same goes for the braided hoses to toilets.  I've never had one go, but have heard of it happening.

@Diem Tran if you are looking into the credit history of a business rather than an individual, most typically use Dun & Bradstreet (D&B) reports.  If this is a small start-up, D&B may not have information on them.  Basically you need to complete some of the same due diligence as an individual and decide your appetite for risk.  You may require the owner of the business to co-sign if there is no available history with the business.

Definitely listen to the podcast Mario recommends.

A couple of things to think about:  Remove toilet and vanity, remove existing tile, patch subfloor if necessary (if there is a wood subfloor with rot, your costs will increase), install new tile, grout, re-install vanity/toilet, and caulk.

Hopefully that is all included within the costs you received.  I think you are focusing on the cost/SF rather than the job.  Bathrooms are small and may have many cuts.  It isn't a one day job, so you won't be seeing any economies of scale.  Consider a second quote to verify costs and make sure you have the same scope of work. 

I have the same issue with an inherited tenant, but I always make sure to notify them as soon as they are late and follow-up daily.  In the end they always pay, including the late fee.  Personally, I'd rather an on time payment rather than getting the fee, and doubt I will offer a renewal when their Lease ends. 

Just remember to document, document, document as one of these times we may not get the rent and have to move down the eviction road.

@Elesha S. welcome to BP.  You're just down City Ave from us.  Like you, my wife and I have a full time jobs and passive on the side.  There's a number of BP'ers in the area that you will probably run into if you head to some of the tax sales.  Wealth of information here, and a lot of people willing to provide assistance.