All Forum Posts by: David Drew

Hi Andrew,

I had a similar situation last week with a contract I offered on.  I had the city of Bing code inspector come out and they let me know that the property I was interested in had illegal improvements and that's why I wasn't going to be able to get a certification.  Let me know if you'd like to discuss in detail.  Many of the building in the city have had lots of illegal bedrooms added, especially on the third floors...  

Just great...Water/Sewer bills are already astronomical in Bing.  

I am a Long Island native living right outside Binghamton NY. I'd love to see how this goes. I'm an active investor doing buy & holds, flips, student rentals and wholesales...the biggest issue I see remote owners facing here is property management ...crappy contractors as a close second. Best bet is to have some local boots on the ground for guidance. Happy to contribute.

Thanks for posting @Remmoy Hewling.  Let me know if you're interested in Binghamton, NY.  I have a few wholesale deals available now - but if your aim is to flip, to @Account Closed's point - the neighborhood is THE most important thing.  I'm currently flipping two houses, one on Binghamton's south side and another just north of the city limits.  I can probably help you find a few good off market deals.     

So, is the first things the seller signs a Letter of Intent, or the Contract?  I live in New York and the contract can be rather onerous to get through (12 pages).  If there were a quick letter of intent to sign the contract, that would be ideal.  Anyone have suggestions?  

Looks like it this should cash flow better than you think. I'd suggest not paying for property management, but still factoring it into the projection. Also, between CapEx, Repairs and Lawn Care, you've got over $3k. That along with the PM costs are your profits. I usually go conservative on the vacancy and call it 1/12 = 8.3%. That's still lower than your 10%. Probably safe to pare that down unless you're sure you're going to have a full month's vacancy in both units. Finally, not sure how you're factoring Depreciation, but combined with all of your Expenses deductions, you're not going to pay any taxes, at least not initially. Using your figures, an 8.3% vacancy rate, including I have you at $138 per door, after taxes. If you can get any of that Cap Ex, Repairs, Garbage, Water etc cost down, those add right to your bottom line. You need to find $62 more per month to get to $100 per door.

@Account Closed, @Thomas S. - Thank you.  I've never misrepresented my intentions regarding the intended use of the property and I'm really surprised about what I'm hearing.  Thank you both for the input.  

Hi BP,

Can anyone let me know the differences and preferences between a Landlord Insurance Policy and Homeowner's Policy.  If I'm renting a property that has a Homeowner's policy, what are the implications and exposures there?  I'm told that in the event of a loss, I may not be covered for either rental payments OR compensation if I have to put tenants up elsewhere while a loss is repaired.  While I'm sure there are other dependencies based on state and company, I'm interested in the general consensus.  The policy in question in this example would be Lib Mut.  

@Nick Adams, I do not project any appreciation.  That's a 'nice to have' in my market.  

@Gerardo Cantu, I'll tell you the same thing they told me...get into action.  Good Luck!  

@Nick Adams, thanks for following up.  Funny, reading my post from 5 months ago, seems like a lifetime ago.  I ended up buying 2 of the 3 properties from the sellers.  Each were listed for $65k, got them both for $102k, closed month ago.  They're cash flowing better than expected, with little repair cost...turn key.  I went conventional on both, closed at the same time.