All Forum Posts by: Dan Kelley

Just a reminder, DUBUQUE REI is still alive and well. We meet the 3rd Tuesday of every month. We're meeting this Tuesday, the 16th at 7 hills brewery in Dubuque at 6:30pm. Come on out and chat real estate with fellow like-minded people. Also search for us on Facebook "Dubuque REI". Happy investing!

Dan

Bigger pockets has some great calculators on the site that you can use a few times for free before you're required to upgrade to a pro account to use them further. If you want something free, you can check out the flip calculator at my site  freereicalcs.com . The site is somewhat still under development, so everything is not 100% functional yet, but the flip calculator should give you the opportunity to play around with different numbers. Let me know if you use it and have any troubles. Good luck!

Dan

@Peter Ulstad, good to hear! Hope you can make it sometime. Let me know if you need anything in the Dubuque area and I'll do my best to help!

@Account Closed Yes, they are! We meet the 3rd Tuesday of every month. The info is on the facebook group. Hope you can join us at the next meet up on February 20th!

@Roy N.

Great insight. I'll be sure to expand my horizons next time I'm shopping and check out the kind of 3 piece you mentioned. Seems like a great way to do it.

My only qualm with 3-peice units is the need to clean the caulk/ re-caulk every so often. I really prefer the look of a 1-peice fiberglass unit with no seams to collect water and mildew. I think they have the ability to look very elegant as well when you choose the right product. 

To update on my end:

It turns out Ruhl mortgage was NOT able to come through with a 5% conventional. My loan servicer was informed incorrectly and then was set straight in underwriting that they aren't able to provide that product. I ended up going with an FHA loan.

Did you ever figure anything else out on your end?

I've used LVP and I love it. I always use the click together style. I haven't gotten to see long term results yet (only had it in my units for 6+ months), but I've been thoroughly impressed so far. With LVP you could easily lay it over the hardwood without causing any damage and then remove it and refinish the hardwood at a later date if you so desired. My advice, should you choose LVP, is to simply buy from a place where you can read reviews online. I recently tried a different brand from Menards where they don't have reviews online. It's decent stuff but didn't click together as seamlessly as some other brands I've used from Home Depot or Lowes. 

Good luck.

I currently own 10 units (2 duplexes and a 6-plex.) The duplex I just purchased vacant and it needs some cosmetic work. The 6 plex is currently only 50% occupied and 2 units need some thorough renovating (all new flooring, cabinets, bathroom gut job, wall taken down, etc.)

I have yet to establish a real great relationship with any contractors in the area. One group quoted me $12,000 to remodel 1 unit. Mind you, this is an upper C to lower B class property. The other folks I've worked with are better on price, but flakey and not great at sticking to deadlines.

My most recent idea was to basically "hire" a part-time handyman-type-fella. Someone that I interview, determine their credibility, and then basically keep "on call" at all times to handle anything that comes up. Whether it be checking a leaky faucet, or working on a total rehab. I was thinking that, due to cash flow limitations currently, I'd find somebody who'd work for around $20/hr for 15 hrs/ month. As I get more units, the hours could continue to grow. Or especially if I purchase a flip property, the guy could work as many hours as he wanted and potentially help GC the project. 

Is this a foolish strategy? Are there even guys out there who would fit this bill? My biggest hold-up is wondering whether there is someone who's schedule works out well enough that they have an extra 15hrs/ month free to be "on-call". They certainly wouldn't always need to drop what they're doing to respond to a call, but there will be those occasional emergencies.

Is this idea worth pursuing or should I just keep searching for a contractor I can bring in on an as-needed basis? Thanks for your input.

Dan

I don't have enough experience yet with trying to refinance out of an FHA to know how the process works, so I'm not sure yet if you'd be able to get an appraiser to value the property high enough to create the 20% you need. I suppose that even if you were able to refinance and have the property appraise high enough to get you to your 20% mark, you might not have the cash left over to cover the new 5% down payment.

My suggestion would be to check with several lenders and see if any will approve you for a 5% conventional. You may be able to go that route rather than waiting to be cleared for another FHA. As I said, Ruhl Mortgage was who got me a 5% conventional. They were much more aggressive at making it happen than my local banks.

Keep us posted,

Dan