All Forum Posts by: Stefan Forsberg

Time to pick up some more cash-flowing units...

I also agree with everything that has been said above, there are some great comments especially the one from J Scott which I think it spot on.

I can only speak from my own experience and I think my biggest fear is/was that I risk loosing everything that we as a family has built up.

I am the sole income provider for the family as we mutually agreed that my wife should stay home and take care of the kids, with that I know I have to think twice before making any investments.

I am slowly getting over that fear, my first rental property helped as it has proven to me that the criteria and systems I used to evaluate the property actually worked.

Now I just have to rinse and repeat..

Hi Jerry,

Both are really bad, especially asbestos, I think you need to have it removed professionally and that will cost a lot of money. If not contained/removed properly it will cost you a lot in legal fees when the tenants sue you.

Sorry for being harsh but I personally would run from this property.

Hi Jerry,

What the tax department values your property at is fairly irrelevant, you need comps from an agent with sold properties with similar characteristics to yours. The comps should not be older then 3 months preferably.

As far as Cash-flow, there is a wealth of information here on BP, the most common rule for cash-flow is the 50% rule. In short 50% of your gross rent goes to expenses (Vacancies, Taxes, Insurance, Office Supplies, Property Management, repairs etc.) the other 50% of the gross rent should cover your Principal and Interest plus your profit. If you can cash-flow 100$ per door per month you are doing good.

I have not calculated your numbers but a mortgage of 152K would probably not support this property using the 50% rule. You could always make a bigger down payment but that ties up your cash.

I am sure other more experienced investors will chime in..

Good luck with it, everything can be fixed, it just comes with a price tag,

Did you have an inspection done before you purchased? I am not sure if it would have helped you identify what the issue is but you might have been able to negotiate on the price..

I agree with Steve, find the pipe supplying water to the DW.

It seems as if you have some water problems with this house, you have another post regarding mold on baseboards, is this the same house?

Not to scare you but I think the inspector is right, if there is water under the tiles and the entire base is wet, you need to find and stop the leak first..

Is the house on a slab foundation or do you have wooden sub-floors? If wood sub-floors you might have other issues as well...

Ceiling fans are easy to put in if you are somewhat handy.

Most of the time you can just match the colors of the wires to each other, you will get the connectors with the ceiling fan.

Just make sure that the box is structurally supported from above, there should be a 2x4 or similar that the box is screwed in to. If not the drywall will come crashing down when the fan starts spinning.

To me it would depend on what your plans are for the property?

If it is your primary residence or if you are flipping the house and selling it retail I would replace the cabinets.

If it's going to be a rental I would try to save them if the water only got to the base.

I think this is it Jon:

http://www.reiexpo.com/members/reiexpo