All Forum Posts by: Josh C.

How’s it vented? If it’s a short run or just another vent issue a backdraft can knock them out over and over again. Once had a double and they went out all the time. Replaced those and the new kept going out. Adding another 10’ to the stack and boom never had a problem again.

Household income of 10-12k a month? Seems tight honestly for that mortgage payment. Even if she was able to figure out how to get the 400k being house poor is no way to live and I wouldn’t recommend my newly single friend spend such a large percentage of their income on housing. Dave Ramsey 25-30% of gross income on living. Once she throws in utilities and maintenance/expensive hoa probably might be over 50%.

But if that’s what she is gonna do anyway 401k withdrawal will likely get the deal done, if a bank will even give her a mortgage on the home. Considering the income she should have 400k in retirement.

But again someone with that income and still bad credit should probably not set themselves up for failure being house poor. Plus early withdrawal is a bad decision. But people gonna do what people do.

When you say “inside unit” what do you mean? The coil or the whole furnace and coil? If you are getting a steal of a deal for the furnace (thing inside that blows air and gets hot) and outdoor condenser. They should pretty much always be replacing the coil (this is inside but sits usually right on top of the furnace and looks like a car radiator) when they replace the ac unit. Most units getting replaced our R22 and being replaced with 410a so the coil shouldn’t be reused and usually the lineset is getting replacing too unless buried in concrete.

Just make sure you know what you are actually getting. I highly doubt it’s everything. 5k is just the new standard in pricing for new outdoor condenser and coil and everything is so expensive these days.

Good luck

New question. Is it moral for politicians and local groups to routinely vote no against denser housing? The people in big cities complaining of housing costs still vote to make building so hard. That’s immoral in my opinion.

My local historic society complained that there aren’t enough low income people and few minorities living in the neighborhood then immediately voted that I had to use cedar siding and wood windows to match the old ways adding $80k to my budget. So of course we have to charge 2k a month in rent where only rich people can live. Lol. That’s the underlining issue which would actually make a difference. Not more regulation on what people do with their currently property. Less regulation on what people do with their land would actually move the needle.

I think pulling a heloc is fine for a down payment and I’ve definitely done that. However spending 2MM on something that cash flows $50-$100 is insane. You are asking for negative cash flows issues.

However, you sound rich with a 2MM+ primary and maybe you just want to park your money in a local hard asset which is totally fine if that’s what you want.

But if you goal is lots of cash flow and lots of doors this property does not fit that plan.

It can be really bad. D class can be bought 50, put in 40, and then sold 12 Months later for 35. Happens all the time. C class is the lowest I’d say for non locals.

The main issue D class areas only attract D class renters. Nurses and doctors don’t move into these neighborhoods regardless of how HGTV it looks. (As Clayton use to say) Really hard to manage and really hard to move in someone who will pay their rent on time and respect the property. Crime and rough tenants are no joke. They don’t give a rip about your spreadsheet.

@James Hamling

That’s great. And if the market goes up and rent goes up you’ll make a mint on your bet. No problem there. But not everyone can afford to that and this guy flat out said he doesn’t have money so he can’t make mortgage payments on a mortgage he likely can’t get anyway while he waits for his A+ tenant to pay first and last.

But besides that losing money right off bat even makes me a property manager and a general contractor nervous. Not sure I can stomach that. But the 0 maintenance is pretty awesome I do agree. I own a lot of 100 year old places and old foundations and broken clay sewers aren’t fun.

Good for you but the hesitation is understandable. Have you looked at building small apartments that could CF day one? Seems that would be amazing.

@Brent Huling

Being attacked. Lol. We just disagree with you. That’s ok. You said house didn’t appraise. You said house appraised for contract amount. which seems to be 1.5MM. Which is it?

I would think it's hardly the problem of the sellers that you calculated your ARV wrong and they should pay for that mistake. Your contract likely has an appraised contingency, but that would be the as is value and not the future value. Also, you usually would be required to provide that to sellers to prove that anyway. I think a judge would laugh in your face. But that's me.

Can’t be mad about free markets. No one is taking advantage of you or extorting you. Strong offers win period. I haven’t accepted an offer in 2 years with less than 20% down because I don’t want to deal with there additional bs the lender puts everyone through. So people that didn’t or can’t save up 20% aren’t able to buy those houses and might feel like you.

That’s unfortunate everyone doesn’t get what they want all the time, but in a free market with low inventory there are going to be a lot of people left out.

At the same time I haven't offered anything but cash and no inspections in 2 years and I remember 7 or 8 years ago getting seller financing offers accepted on MLS homes. Just the current market and we can accept that and adjust or sit out til we get what we want.

@Sarah Moncivaiz

You likely don’t have a law about removing tenants in this manner. However, as Nate said did you talk to them? They probably don’t want to stay there without plumbing. Most people enjoy working toilets and hot showers.

I would offer them a couple of weeks if free rent as concessions for moving unexpectedly.

Or you can try to schedule it so they move in with family for a few days while the work is being completed. They can stay there during the permit process etc.