All Forum Posts by: Corey Young

How do you think City permit inspections for rehab work fits into this discussion?  In Austin, city code inspectors walk onto lots, and into structures uninvited to build a case for requiring rehab permits.  The city can issue stop work orders based solely on the perception that a building permit may be required or based on the info garnered from trespassing. 

Are those estimates labor-only?

Is the Bigger Pockets still meeting monthly in the same Starbucks?

Hello All, I'm under contract to purchase a duplex in N. Cincinnati. I'm an out of state investor. Can anybody recommend a reputable buyer's home inspector and property management company?

Hello, I'm heading to Chicago the first week of December to acquire a property or two for fix 'n' flip. Can anybody recommend a reputable private, Hard Money or Asset-Based lender that loans in Chicago?

I've only purchased one buy and hold. It currently has a 15% return. That is now my minimum expectation as I look to procure other properties. As for cash flow, I don't think I'd be happy if it wasn't earning $350/month.

If that property goes up in value faster than it rents, I suspect I'll sell and reinvest when my cap rate hits 10%.

As you know, you need liability coverage. I am surprised that your current policy for that property doesn't include it. With that said, call your insurance agent and discuss the best liability protection for your situation. Often times, for smaller investors, a simple umbrella policy on your personal home in addition to your homeowner policy on the rental can be enough. But you'll want to double check. A million dollar umbrella policy is cheap.

Additionally, you can also require that your tenants secure a liability policy (especially if they have a dog) and add your name as an additional named insured.

Disclaimer: 19 years ago, I was an auto liability claims adjuster and therefore that makes me feel important, knowledgable and worthy of your ears when it comes to matters of liability coverage.

Thanks Tom,

I appreciate the input....and will definitely move forward with that advice.

J Rod,

I don't know the total square footage. However, my assumption is that $30k to rehab rental property seems to be a bit high.I don't get the impression that your units are dilapidated. $30K is what I would spend if the place is piece of JUNK and I purchased it for well under market value. I live down the road from you. Rental properties in this area are nothing special aesthetically and commanding a lot of income. As you know, all you need to do is make sure the place is clean and mechanically sound. Laminate counter tops and brass fittings are fine. Renters don't expect more in that price point. A new coat of paint and new floors if necessary. But $30k? That seems high if we're only talking about dingy and dirty. I'll even throw in a brand new AC and water heater and you're still nowhere close to $30K.

I think you can elevate the value, improve the cap rate and not risk $30K.

Hello,

I'm in Austin, TX and contemplating a flip partnership. My potential partners own the property upon which we intend to tear down and rebuild. I'm seeking some sample partnership agreements and/or operating agreements that would both clearly define our rolls and provide protection to each person. I am bringing cash and opinions to the table. They are brining the land and some construction bids to the table.

I worry less about agreeing on marble v. granite but protecting our individual interest from things like future liens etc.