All Forum Posts by: Darren Lenick

Hi Russell,

I’m going to be up in Apopka about every two weeks as it gets closer to finishing my property so keep in touch about the day/time and I’ll try and schedule around that.

For a “quick” evaluation I look for baseboards separating from the floor, especially at exterior corners. Cracks under opening such as doors and windows. Another trick is to place a ball on the floor and see if it rolls in any particular direction as that can be a sign of sinking foundation, failing beams or joists or buckling due to water damage.

From there, you need a professional to evaluate your findings. Sometimes the ball will roll because someone was too lazy to level/clean the subfloor before laying down the tile/wood.

Based on your posting the damage seems to be extensive, especially since it’s affecting the structure of the home such as a floor beam, sill plate and subfloors.

It appears there is active termites as well as a beetle issue and both must be resolved before repairs can de done.

You didn’t mention home value, just purchase price so it’s difficult to say what to do from this point.

At a minimum, I would have the termites and beetles dealt with and get a bond from the termite company to cover the first year for more treatment.

Also, have a licensed contractor give you a repair estimate. Keep in mind that they usually find additional damage once walls are opened up and that will cost more. Since the sill plates are affected, it’s safe to assume some wall studs may also be damaged.

If the property is not worth much more then the purchase price, personally I would walk away.

First thing that comes to mind is looking at the history. Were there any renovations done in early 2000’s? That’s when there was a major issue with drywall from China that had high levels of sulfurous gases.

The off gases get worse in heat and humidity which would match the Atlanta, Georgia area.

I’m new in the South Florida area and noticed that in certain communities there are mandatory club equity membership purchase requirements. Most of them seem to be in the $70k range with another $15k-$20knin yearly dues.

I know these were big at one point as the lure of having a private golf and country club as part of your community seemed appealing.

That being said, I’m seeing a lot of short sale and foreclosure properties in those areas.

I have no interest in living in one as I don’t play golf enough to join but was wondering if anyone else has experience in these properties and the diffulties there may be in selling them.

Do you think these communities are going to struggle in the future and if so, do they have an exit strategy such as making the course public or selling it to a private entity?

I think every situation is unique.

For us, we sold our house in Toronto and moved to Florida last summer. We are renting currently for a couple of reasons. One, we want to decide on the best area for our family to live in. We have 4 kids at home still and 2 of them are still in school, so schools play a major part. Second, living outside of the US for almost 9 years means our credit was dormant and it took a year to rebuild it.

We used the proceeds from our home sale to fund the first 2 properties we are doing. Now that we know where we want to live, we will be using some of the proceeds from our first property to purchase our own home. We too believe, like others, that it’s better to build equity in your own property then build it for someone else.

Also, we buy distressed properties even for our primary residence and renovate while we live there. It’s worked out well for us so far as we’ve done 3 homes this way which is what has allowed us to be were we are now. 

Temporarily renting is just part of our current strategy as it will allow us to renovate our next primary residence before we move in while determining what neighborhood we want to permanently settle in. But as you see, our situation is pretty unique as we made an International move.

Thanks for the reply Boris, and no worries, experienced opinions are what we come here for.

My involvement was much more than just watching the project and my experience is deeper then reading books and watching TV reality shows. I even appeared on one in the mid 2000’s; Designed To Sell. LOL

To clarify, I was often involved in the purchase process as I determined the renovation budget as well as scope of work. The ARV was a collaborative effort between my cousin (the financier), the real estate agent and myself. This culminated in the decision to purchase the property or not.

Every property I was involved with turned a good profit and in one case, broke a sales price record in an East Orlando area for being first house in that neighborhood to break the $200k mark. It ultimately sold for $209k. The buyer originally agreed to $219k but the house wouldn’t appraise so we agreed to the appraised value of $209k.

In any case, I have recently been approached by a lender who is willing to finance the renovation since I am in an all cash position on both properties with my first property getting close to completion. The current plan is to use some of the proceeds from that one to complete the rehab of the second. Still not sure I will do hard money due to the cost but it’s nice to know it’s available in case I change my strategy.

If you do any type of funding in Florida please feel free to keep in touch for future projects.

Aside from finding deals it was also a choice of where we wanted to live.

We sold our house in Toronto and moved down last August. My wife wanted to be further south and closer to the ocean which is another reason we left the Orlando area. Plus, the congestion, traffic and tourism. Damn!

I will purchase a property anywhere in Central or South Florida for the right deal. North of Central Florida is too far for me at this point however my family is doing quite well with Commercial properties in the Tallahassee area at the moment.

Hi Lane and welcome back!

I’m finishing a property in Apopka in the Paradise Heights area. Planning to be done by the end of August.

I’ve done several with family in the “Orlando” area such as Zellwood, Casselberry and Altamonte Springs but good deals we’re getting hard to find so moved south to West Palm Beach.

Congrats Anna! Best advice I’ve ever been given and always forward is: - create a detailed budget right down to finishes including cabinet pulls. You’d be surprised how quickly “little” things add up. I also add a 5-15% contingency depending on House age and condition when bought. - create a project plan and STICK TO IT. Setting a hard finish date for Open house lights a fire under your butt. - even if you don’t think you have problems with things like AC, heating, plumbing, etc., have it inspected. Better to know while under construction then during inspection by a prospective buyer or after a tenant moves in if a fix and hold. - crap happens. Don’t let it get you down. Determine the best course of action and keep moving forward. Hope all goes well!