All Forum Posts by: Account Closed

Attics with walk-up stairs that have the space and headroom requirements are, in my mind, low hanging fruit/value add propositions.  The posters above all brought-up valid considerations and while there are others, keep in mind a few more:

- the stairs may not be code compliant - might be potential for them to be grandfathered

- the attic floor joists (i.e., the ceiling joists for the room below) may not be sized properly

- are the rafters large enough to insulate the ceilings well - 2x6 / 2x8 (common rafter sizes) won't allow for adequate insulation using fiberglass batts

While not my preference, but certainly a much more economical solution - a window or through wall A/C unit and electric baseboard heat should be able to handle a bedroom with relative ease (just don't use the egress window if it's the one one).

Is your father-in-law an active and experienced contractor currently running his own business, or is he going to act as the GC (but isn't particularly qualified)?  That changes the dynamic entirely.

As well, if he weren't your father-in-law, is he someone with whom you'd want to work with?

Option #4 exists too... which should be considered since it provides perspective... find another contractor you trust, who will perform at least as good as your father-in-law, pay them for their services, manage them and the project, etc.  In short, it's your first deal - you up for that?

@Chris Christianson made some excellent points (and yet only touched on a few of them).  There is a difference between someone who is willing to do construction work and one whose career is in the industry and they've invested in that accordingly.  The latter is often well positioned to ask a prospect, "why should they work with/for them?"  In short, who needs who more, and who is in a position to make the other successful?  

And if you're father-in-law is worth his salt, and brings something to the table you don't have otherwise, well... 

Even within the same carrier, their may vary by state.

That said, I'd suggest reaching out to Erie Insurance.

What is the FMV of the property? You mentioned it's only +/- 3 years old and is surrounded by homes in the $250-300K range? And the seller is willing to sell it for $60K?

You may be on a very slippery slope there.  While there are folks who make interesting choices when it comes to selling their property, when the elderly is involved, it's another ballgame altogether.

@Eric Wesley, @Justin Lenk, @Nicole Curtis, @Account Closed - thank you... 

Charles - yes, affiliating, next step... office politics - I'm allergic... top dawg - no interest.

Michael - yes, I'm hoping you are correct and that the dual license proves to be advantageous.

Andre - good luck on your test!

I concur with Karen.

The value of a 12 unit apartment building is not like that of a residential house.  Its value is largely determined by the income it produces, not comparables, per se.

Constructing six stories is well out of the realm of residential (wood frame) construction.

Good luck!

From 40,000 feet, it certainly looks like a good deal... 3/2, just a few years old, no-rehab needed...

$55K @ 10% for 30 years is under $500/month (PI)... 

You may "want" to rent for $1,600 - $1,700, but is that FMR? Can you get that? If so, that's better than 2.5% of sales price...

Even in Baltimore City, $60K for a three year old property that'll rent for that??

Are there extenuating circumstances involved, as this sounds a bit too good for a MD property?

Is the seller really the owner? Someone's not asking for $5K EMD direct to them, are they?

There are companies out there who will install sub-meters, bill and collect from tenants, take a cut and provide you with net (and of course, you pay the municipal bill).

Reducing consumption is of course a no-brainer.  Faucets, showers, toilets...

In particular with toilets, depending on their age, you may be able to drastically reduce the volume of water per flush (and there are even some rebates available).

Spec - you call the shots and schedule should be easier to maintain.

As for ROI on spec vs. custom - location may drive that. A modest house in a high demand neighborhood may prove to have greater profit potential than a custom one.

Use one of the postal service's "Service Requested" options on the envelope.