All Forum Posts by: Constance Kawa-Small

@Nicole Warne-McGraw I wish your post had happened yesterday just so I could use the same verbiage!

I backed out yesterday with a long email due to the major repairs revealed at the inspection too.

I wonder how does it work and how long it takes for the earnest money to come back?

@Duc Ong Congratulations! Awesome Deal! 

Can I take a guess? Natrona Heights???

If you don't mind me asking, how's the occupancy? Were all units rented when you purchased? If not, how has the turnaround been for getting them occupied?

@Ali Boone Thank you for your reply and input! I'm fairly new to BP but have been following your articles off the bet, so I appreciate your experienced TK investing advice. And FINALLY I got a hit on that meme - I was hoping it made at least one person smile while reading my thread. 

But yes, I will share the inspection report with the provider, ask for repairs and see what happens from there. I am waiting for reports on 2 other properties from the same provider, so hopefully this one was just a "bad apple" and the other 2 will be better.

I'll send you a PM to answer your question on location.

Thanks!

Thank you all for your time in responding! I'm so glad to be part of this community.

Yes, price point is low. This is a low entry point market ($150K ish median) and I did look at records of how much they paid (Zillow, at least). @Anthony Rosa, I agree with you and that's why I was even more disappointed. I knew they had added quite a bit of mark up, and this actually added to my expectation that a better rehab job was done...

@Peter Mac, I'll give you this one. You are right. I got overly excited seeing all the pro-formas and jumped the gun with 3 offers. I will evaluate the other 2 inspections to see if they are worth the deal.

Thanks again Community!

@Tom Ott thanks for your reply. The property is tenant occupied. 
I haven’t brought the report to the provider yet, but as @Scott Passman, @Bob Prisco and @Chris Clothier suggest, I see that their reaction should be my queue in deciding to move forward or not. 
@Mary M. I wish I could invest in my market, but Hawaii is way out of my price point. 

thank you all for your inputs! 

Hey BPers!

I'm tackling a couple of strategies to diversify my investment knowledge and I am currently in escrow for 3 turnkey properties from the same provider (C neighborhoods, SFR between $65K-75K, projected numbers were looking good). I received the inspection report for the first (non-biased inspector, not referred by them) and the "deficiencies" list was quite longer than I expected. Now, I know, I was not expecting a perfect TK. I have been digging into forums, posts, articles and reading a TON of information and opinions on the matter. @Ali Boone 's article (https://www.biggerpockets.com/blog/2015-02-08-property-inspection-important-get-the-most-out-of-yours) was SO enlightening! I am also aware I should focus on the major issues that have to deal with durability, safety, or dependability of a rental home. A hand picked items from the report:

- quite a few minor electrical issues (determined safety, will ask provider to fix)

- leak from upstairs bathtub going to the downstairs kitchen ceiling and 2 other rooms with visible current water damage (quite concerned)

-insulation on only 25% of the roof (how do tenants keep warm?)

- no flooring in one of the bedrooms (wait, what? I know it's cosmetic, but I just got SO disappointed that a turnkey DID NOT have flooring at all in that bedroom??? Or should I not worry because tenant's deposit will be held for damage at some point?)

So tell me, my fellow TK investors, when is it worth going through and asking for the repairs and when is it just too many, making it not worth closing the deal?

@David Barnett

Thanks. Yes, these were run on the BP calculator and the only thing I was uncertain was the taxes. I’ve asked the title company, we’re waiting now.

@David Barnett thanks for your input! Help me out analyzing this deal.
Here’s the cashflow predictions I’ve got with the bank’s overestimating taxes and insurance, versus my original numbers based on historical taxes:

Property1: $118 versus $175 (total cash invested $16483)

Property2: $168 versus $204 (Total cash invested $18407)

Property3: $108 versus $194 (total cash invested $19038)

what are your thoughts? 

@Paul Whitford

I agree with other BP peers that both could be achieved.

I’ve always wanted to hold a MS, and feel it’s way overdue for where I am in my career. But I know that having a grad degree is more for my education and knowledge goals than actually for the purpose of getting higher paychecks.

So I guess what I would ask myself is “what is my main immediate goal?”

- making more money now?

- being recognized for my education and go up corporate ladder later?

- (add your purposes and goals here)

As for me, 4 months ago I was full on researching grad programs and now I’m getting into contract for 5 properties (10 units total) hoping to close soon with an estimated cash flow of ~$2000-2200 total.

Wish wisdom on your decision, whichever it may be!

@Theresa Harris thanks for your reply! We received our loan estimate today and I got super worried. They over estimated property and taxes quite a bit, which would  be a significant cash flow drop. Based on taxes history I don’t think it will be what the estimate shows, but I better know my way out if cash flow is not worth.