All Forum Posts by: Pyrrha Rivers

@Michael Rudd Thank you so much for this tutorial! it is very user friendly and super easy to use. I appreciate it!

Pyrrha

So I did a quick search for a tutorial on how to post pictures and thanks to Michael R, I now have pictures to show you.

Thanks Michael the tutorial was very user friendly!

In the future I will capture images individually so they come out larger, but here's the first try.

I just got the repairs estimate for the property. Asking price $36,900 + repairs $14,000 = $51K

1) Repair all roof leaks $ 475.00

2) Replace all rotted fascia and soffit $ 325.00

3) Prep all previously painted exterior surfaces and seal gaps between to materials. Prime all exposed wood surfaces and apply two coats of paint on all previously painted surfaces $ 2,850.00

4) Install rear exterior door unit with all hardware and locks.

$ 570.00

5) Replace concrete pad at the base of rear stoop steps

$ 720.00

6) Remove the dead tree at the right rear corner of the house, haul limbs away and stump the roots. $ 960.00

7) Repair the chain link fence at the rear of the house.

$ 436.00

8) Install 80,000 BTU gas furnace, with a 24,000 BTU condensing unit and 24,000 BTU evaporator coil, 30’ line set, pad and electrical disconnect

$ 4,650.00

9) Install a 40 gallon gas furnace in the crawlspace with expansion device.

10) Install shoe mold in the house $ 650.00

11) Repair all cut-out holes in the interior drywall finished to paint and paint all repairs. $ 275.00

12) Replace lavatory in the hall bath $ 350.00

13) Properly cap the countertop right end and repair base cabinet facing.

$ 200.00

14) Install missing downspouts $ 150.00

15) Install guard rail around the rear stoop and step

$ 710.00

Total $13,321.00

I'm not having much luck uploading the pictures so I'll have to take some time to figure that out but here are the numbers for the rehab.

Thanks!

@Rick Baggenstoss That’s funny! It’s not blame I’m placing on my daughter just the truth. Her eyes are not trained because mine aren’t either. She said the house looks very good and only had a question about a couple cut outs in the wall. Neither of us have any idea of how to look for signs of foundation problems or even things that are quite obvious to you when you walk in a place. I’m sure my posts make it clear how green I am at this, so I can’t yet provide the leadership she needs in order to make the observations a trained eye makes. I did not give her a list of things to look for because as you mention I don’t have a system to invest remotely. I did ask her for pictures and she took them. I was just saying to her I wish we had known the tip that @Jon Holdman gave me about driving the neighborhood and noting how many for rent signs there are. If they are plentiful we may have a tough time renting ours. I didn't know that either Lol.

As newbies we just don’t know what we don’t know. That’s why BP is such a blessing with so many generous folks willing to talk us through the thinking process and tell it to us straight. I really appreciate it and love the list of items to consider, including the paint colors. Where else can one get so much help?

Thank you so much for taking the time to guide me!

Thank you so much @Aaron Montague ! This is very helpful! I really appreciate you taking the time to work this out and explain it to me.

@Steve Babiak You said "Your HELOC payment sounds high for that loan amount. Is it interest only payment? What is the interest rate?

Your rent range is way too broad. You have to be within like $50 to $75 at the widest rent range to really evaluate accurately. I suspect you will be at lowest rent for that price of house."

The $231.64 payment is what they quoted me for the whole loan amount which is $50,000. Does that number sound more reasonable to you? The interest rate is 3.75%

I followed your advice and used the lower rent for my calculations.

Thanks,

Pyrrha

@Aaron Montague I'm back with the numbers you asked me to gather so you could tell me what you would pay for my prospect.

Thank you for teaching me how to think about this!

I will use the $650 rent number as it is the lowest, therefore safest for me to learn with.

Taxes: County record 2013 $669.08/2012 $700.30

I’ll go with ($700/12= $58 per month)

Sewer and Water N/A Tenant will pay

Trash Part of the sewer and water bill in this county

Heat/Utilities N/A Tenant will pay

HOA N/A SFH

Cap Ex and Ops $150.00

Insurance $750/12=$63 per month

Mgmt Fee - as a 10% $65.00

Vacancy- %. $52.00

Thank you @Rick Baggenstoss !

You are right when you say "You really should already have a rehab estimate based upon your daughter's walk thru and agent input. Before you make an offer, you should have a good list of these repairs/maintenance items and your best guess at the cost." the problem is that at this stage my daughter's eyes are not trained to spot things a professional can. I will ask the realtor, though.

I would really appreciate your help finding the handymen that can provide me with bids for the work to be done. I know there needs to be an air conditioner condenser unit replaced, I also need an electrician.

You are absolutely right about my learning a lot from this one. Whether I end up buying it or not, it already has been a great source of learning for me.

I though I was doing something by plugging numbers into the basic rules formulas, but the BP community has told me that's just the tip of the iceberg, so I have a lot of research to do as well as the contractors list to build and have no idea of how to find them.

Guess this is my case study.

I will add your suggestions to the growing TO DO list the BP experts have given me for this house.

Thanks!

@Naga A. This is most helpful!

I understand a general contractor not wanting to give an estimate for someone else to do the work. That is certainly fair. Now to the next hurdle. Finding a reputable contractor to use. Do you have a recommendation?

The expense for that estimate is much more along the lines of what I was expecting and I really like it even more if it becomes fart of their rehab fee.

I'll look for your PM and we can certainly talk by phone.

Thanks

@Naga A. Thanks for the response. Yes, I feel like I'm getting close but after posting this request for help I don't feel so close any more. I have much work to do before I can answer the many questions colleagues have suggested I consider to insure my decision is solid. The property in question is in Decatur, between Stone Mountain and Atlanta.

How do you perform your inspections? I am looking for an inspector to help determine the major systems are sound as well as provide an estimate for rehab expenses. I had one recommendation but he wanted $325 for the inspection + $100 for the rehab estimate. All of which he told my daughter he wanted payment for at the end of the inspection and he would provide the report a couple days later. I'm not opposed to paying a deposit and the remainder of the required fees upon receipt of the report. I think that protects both the inspector and me. Not comfortable with how this guy expects to be compensated, so I have to keep looking. Do his fees sound reasonable to you? Do you have someone you can recommend?

Thanks!