All Forum Posts by: Corey Young

@Alex Cotton, @Chase Keller - Thanks guys. I'll reach out within the next few weeks when my strategy is nailed down so we can see if there's a good fit or opportunity. Thank you for responding to my intro!

Update on the roof: I had the insurance adjuster out to the house and he approved replacing the roof, gutters, down spouts, window screens, mailbox, and refinishing the deck. I'm working with Premier Roofing to get the work done. Only my $1,000 deductible out of pocket. So I'm going this route.

Thanks to all who responded with suggestions!

Thank you @Michael H.. Very good information to know. I am having a phone call with the roofing company later today to get this moving along quicker. My initial request was for a quote to repair just the damaged shingles on the roof. I haven't heard back. They probably want to fix everything on the property (if the insurance company will pay it).

I am certainly willing to be convinced. I'm very new to this, so I could be missing something. And I don't want real estate investment to be a full time job. So I think I would welcome being convinced :-)

Here is how I see the numbers on turn key properties. Take the 8500 Evanston St property, for example. Financing $117,500 with 25% down would be $30,000 plus $4,000 closing costs. So $34,000 in.

The loan would be $440/mo. Plus say $500/mo. for maintenance, management, capex, vacancy and $175/mo. taxes and insurance. So $1,115/mo. expenses on $1,250/mo. rent is $135/mo. net income. On $34,000, that's about 5% COC. I think a buyer of this property would get perhaps 8% total return on it over five years.

I'm not saying that's bad. Just that I have other options to get a much higher rate of return than that. For me, I'd need 18% for the turn key to be worth it and I think the numbers would need to be moved more than is possible to bridge the gap between 5% and 18%.

This is great insight and advice. This is the best response yet! :-)

I just emailed the roofing company to propose this (I did not disclose my deductible but said that it was "reasonably low"). Once they accept the deal, I assume they'll be the better ones to convince the insurance company that a new roof is needed, so will proceed from there.

Thanks again!

New shingles not matching the existing shingles is a very good gotcha to know! I did not realize this. Thank you for sharing!

Honestly, I don't know if there are extra shingles hanging around at this property or not. I will check on this before I decide to move forward with repairs (if I go that route).

Thanks again.

Thank you for your response. I've considered seeing if insurance would replace the whole roof, but I was hoping to spend perhaps $250 or less for repairs and the roof is only three years old. If the repair quote comes in $500 or above, I'll check on full roof replacement.

Thanks again!

Thank you for the insight.

Regarding turn keys, I wouldn't be opposed to looking at some properties, but I'm primarily interested in rehabbing something as a flip or rent (preferably flip for now). The cash on cash is much better that way. I would want at least 18% cash on cash return from a turn key for it to be worth tying up the money.

About Me

While I do have a question, since this is my first post to the BiggerPockets forums, I thought I'd kill two birds with one stone and introduce myself while asking the question.

My name is Corey and I currently live in Pleasant Grove, UT.

My "Experience"

I'm also a newbie real-estate investor. I've owned one rental property in the Liberty area of Kansas City for about six months. It's not a great deal (2002 home with $1,500/mo. rent on $187,000 purchase price, current BPO in the $220,000 range), but got me involved anyway. I found out about BiggerPockets from a real estate friend who owns multi-family rentals in Utah.

My Goals

Regarding my real estate goals, I'm currently toying with the idea of parachuting into a city this summer for perhaps three months and slamming some flips. I have family in Kansas City/Leavenworth, Memphis, and South Bend/Elkhart, so these areas would interest me the most, but I'm really open to anything right now (Des Moines and surrounding cities like Ames and Iowa City come to mind).

I've never flipped a home, but I've built two custom homes (that were my primary residences) with a GC and have performed most construction/finishing tasks (e.g. framing, HVAC, electrical, plumbing, trimming, painting, etc) on my basements. I was the architect of the second of these homes. So I do have some familiarity with the construction tasks that are performed when flipping.

If I decide to move forward, my preference would be to partner with an existing, successful flipper (or rehab renter) in the area for the first flip or two, then move forward on my own (or not. I'm flexible; just want to do it). I should have access to private and hard money lending, as well as some of my own funds. And I know how to kick serious *ss on projects ;)

My Question

Regarding my question, I guess there was a hail storm a few months ago in KC and my rental took some roof damage. Along with several other roofing companies hitting the ground to find customers, Premier Roofing stopped by the property to inspect and take pictures (pictures included here). I'm in the process of getting a quote from them (I asked for specifics, such as how many shingles will be replaced, how many repaired, etc). I'm including an additional picture that shows some water damage on the interior ceiling that appeared after the event. So there is at least one confirmed leak.

They pointed out through pictures other damages to the home, such as to down spouts, window screens, mailbox, etc., all of which I considered to be extremely minor and cosmetic. I'm going to ignore those for now.

My most important question is this:

Does anyone here highly recommended a particular roofing company or handyman in KC that could do a thorough job of fixing the roof while remaining competitively priced? My insurance deductible is $1,000. I would very much like to avoid putting $1,000 into fixing this.

Thanks

Thank you for reading my introduction and thank you very much in advance if you respond to my question. I really appreciate it.

-Corey