All Forum Posts by: Byron Scott

@Dan McCahan Thanks for the advice. I probably should add sewer and water into the rental fee. This way I avoid having the separate them. I do think I will have to separate electrical. 

@Jill F. You gave me so much GREAT information! I pretty sure this was built as a single home originally. So I am going to have to do sub meter and get a new line for sewer. Have you experienced the cost on doing these things?

Where can I find good property management software?

@Chase Louderback I am estimating because there aren't cops for a duplex sold recently. The closest I can find is a duplex across town sold for 130k in Jan. 2016. Both sides 2/1s. They were in need of rehab tho. 

My rehab needs new roof, electrical work, and new back decks... Then bringing everything else up to date. Most of it will need paint or touching up. I'm right outside of metro Atlanta.

@Oleg Shalumov I'm pretty sure I can't move into either side until all the work is done because its a fha 203k loan. Also I don't plan on staying for long. I thinking long-term ROI and stuff. I am worried about the big project. If I think its too much I may stay with the 1/1. I have ran the numbers on that as well. Assuming I can rent a 1/1 for $500 but there is no evidence of this- thats why I want to stay away from this. I still searching to see if I can find more 1/1s in the area. I want to stick with stuff I see that is working. Still have good returns just not nearly as good.

@Alan DeRossett Thanks for the advice. Because I'm doing a fha 203k loan I can't do any work on my own I have to use a general contractor. I also think that they won't let me move in until it is all complete. This is something I am going to ask my 203k consultant and lender. Thanks for the advice!

@Oleg Shalumov I could leave it a 1/1. There are just not many of those around in my area. Doesn't seem like there is a demand for them. Right now its being rented out for $400. I can't even find another 1/1 for rent unless its at a big apartment complex. 

The reason I was going to convert it is to have two of the same thing and to have the 2 bed 1 and 1/2 bath that is in demand in the area. There are apartments around my duplex that have that set up and I have talked to their owners and they stay filled and in demand (they are renting for 800-900. I'm guessing these are families filling these up and not single people. I'm also assuming singles move more than families if they are happy. I do plan to get bids both ways, keeping the 1/1 and converting it into a 2 bed 1 and 1/2 bath.

Also this isn't my cash. I'm using fha 203k and I want to push this property to possibility appreciate to the point where I can BRRRR. I would be all in for about 120-130. There is a triplex across the street with the same layout I want that appraised for 240. I couldn't find a duplex that has sold recently in my area but right now my property appraised for 106k. I'm thinking it will go up to about 150-160k. Let me know what you think. I'm not counting on this appreciation but it would be nice to being able to BRRRR or something similar.

@Jill F. I put the trash into management. I have contacted property managers in the area. I can get management for 99-115. Trash pick up cost $15.

Electrical meters will be separated and on each unit (part of my rehab).

I was listening to a podcast and I learned that I can add the water fee to the rent. However, I would like for it to be set up where they pay the water directly. How would I do that.

Sewer is a big question mark for me. How much is sewer? Is that usually linked to something else like water? How much is it usually? Thanks for bringing this up. This is something I really need help with. 

@John Murphy Thanks for the advice. Since I am doing a fha 203k, I have to live there for a year. I plan on paying rent like a regular tenant. My current rent is $1,100 so this is a discount for me. This also will keep things the same once I move out and get someone else in that is paying $800. 

I have been thinking about self managing. I know I should. Just nervous about establishing leases, collecting money, handling request. Thats just something I have to get over and learn. I just don't know much about managing but I am going to dive into it and learn as much as I can from others. @David Lee Hall, III Thanks for the tip. I definitely will look into it.

I left management there because I'm not going to want to manage forever (at least thats what I was thinking). If I ever get management, I will already have it covered. Thinking conservative and worse case. Thanks so much for advice. I need all the comments and advice I can get. 

I finally got a deal! I'm in the process of completing my first deal. It is a duplex. I'm doing a fha 203k loan. I'm going to live in one side and rent the other out. I want to get some thoughts from others. Purchase price is 63k. In rehab I want to stay below 80k. I'm turning a duplex with 2/1 and 1/1 into two 2 bed 1 and 1/2 baths. They are popular in my area and rent for 800-900. I am a newbie and need as much correction as possible. I put my numbers below. Let me know what you all think. Thanks!

180 for outdoor/maint. is for repairs and capx

I know refi is suppose to be a year or 6 months but I'm going to try as quick as I can. Don't know if a down payment is require. Thanks for any feedback.

Hey @Chris Sellers I went ahead and took those items as expenses because I'm thinking down the road what I'm going to want to do. The outdoor maint. includes capx/maintenance. I guess I need to add 30-50 for landscaping. Or I can buy a riding and cut it myself. 

Hey @Theresa Harris. I have a lot to learn about refi (second numbers). How much will I have to put down on a refi? 

Where I live now I pay $1,100 in a 2/2. I plan on just paying the 800 like I'm a regular tenant. 

With the loan I have with 203k I don't know if anyone can move in until all work is done. That's something I didn't think about but will definitely have to ask. 

Another thing I didn't mention is this duplex is on 1 acre of land. Should I try to look into clearing that land off? Potentially building another property? or self storage? Or should I just leave it alone? Thanks for the feedback guys. Need as much as I can get.

My biggest struggle is the rehab. I say I cant go over 80k. Is that realistic for turning a 2/1 and 1/1 into a two 2 bed 1 and 1/2 bath. Current property is in ok condition with about 1700sf. Just would need to add on.

I finally got a deal! I'm in the process of completing my first deal. It is a duplex. I'm doing a fha 203k loan. I'm going to live in one side and rent the other out. I want to get some thoughts from others. Purchase price is 63k. In rehab I want to stay below 80k. I'm turning a duplex with 2/1 and 1/1 into two 2 bed 1 and 1/2 baths. They are popular in my area and rent for 800-900. I am a newbie and need as much correction as possible. I put my numbers below. Let me know what you all think. Thanks!