All Forum Posts by: David Chwaszczewski

Most warranty items covered are FIXED items.  HVAC, dishwasher, stove, mounted microwave etc..  Not sure that Fridge/washer/dyer are considered fixed.  You would have to get a copy of the warranty coverage  you are buying into.  

The covered items must be functioning at the time of purchase.  If not you would have to work that out with seller (replacement or credit at closing for repairs).  Any items needing to be repaired before closing are your responsibility to work out with the seller.  After you purchase the home it is your responsibility.  I would have the homeowner fix the electrical before closing or provide closing credits to  you to get the work done after.  I would want done before i move in. 1yr warranty will not cover your electrical issues.

I don't think i have ever encountered fridge/washer/dryer in an inspection.  I think most inspectors think the owners are taking them.  I would be interested to see if anyone else has come across this.  

You need to make sure the paint is sound.  No chips, or peeling etc..  You will also have to disclose that in your rental agreements that there is lead based paint and also information on lead based paint (you can find on websites and print out).  Have your tenants sign a document that they understand the risks of lead based paint.  You should be good to go after that.

Other option is go over the existing wall with 1/4 drywall and seal it up instead of rip out.

Good Luck!

Yes you should always have the seller include a 1yr home warranty.  You will need to read the fine print from the warranty company, but typically they will cover appliances (not sure on Washer and dryer)  in the first year if they break or a percentage of it.  My question is why didn't the inspector look at the appliances when they came to inspect the property?  I can understand the washer and dryer not being inspected, but not the dishwasher.  

@Judah Johnson I feel most investors fall into this trap.  Its called OVER THINKING!  Just do what you are comfortable with.  It doesn't matter if you use excel, numbers, google docs etc.  Just stick with what you are comfortable with and build from there.  They all do the same basic functions you are needing.  When you become better at creating spreadsheets then you can look into different options and features.  This is my take on it because i have been there and spent more time on things like this then actually working deals.  Good luck!

Here is one we did recently:

3bed 1 bath 980 sqft SF home

Purchased 23K from owner

Private money borrowed 30K 

closing cost and mis fees and back taxes 1.5K roughly

Rehab 5.5K and 1K of my own - 6.5K total rehab - because i was over budget :-(

all in for 30K borrowed and 1K of my own money. ARV of property 70K.

Rents for 821 a month. 800 is the rent and they pay the 21 to us for renters ins.

Refinanced the property after 6 months and paid back private money and got 30 yr fixed and payment of 550 PITI with a mtg of 54K. Was able to take the cash out from refi and buy another duplex and we are currently renovating the property.

Only 1K out of my pocket due to fix up costs .  Small numbers, but they add up.

@Jacob Elbe You don't want to SEAL the interior walls and not correct the problem.  If you do that it is only putting a bandaid on an open wound.  It will come back and haunt you big time.  Mold and other possible issues from a wet/damp basement leaves you open for a lawsuit from tenant for negligence to make the necessary repairs, especially if township has sent you a letter of violation, you knew about it! 

I agree with others on this one and install a french drain and seal the exterior foundation wall to prevent further water intrusion.  May cost you now, but cheaper then the alternative.  Good Luck!

@Jash Sayani 

1. There is plenty of areas that are great to invest in.  You will find may articles here on BP, question is what is your investment strategy?  When you know that then you can evaluate different markets.
2. You will have to contact several managers in the area you are investing in.  I would suggest contact realtors in that market and ask who they would use and why.
3. Is it your 401K?  If it is I don't think you can use the money to fund your own business endeavors from your 401K,  it has to be an arms length transaction.  You will need to look into this.  You can use other investors 401K if they have no interest in the property.

@Brandon Trafford This is a loaded question....What kind of work?  Are you just doing cosmetics? Are you having to pull permits? Does it need roof, electrical, plumbing and drywall repairs? What size is the house? Are you doing the work or hiring contractors?  Are you hiring just one contractor to do all repairs or are you are you doing trade specific?  I can go on, but you get the idea....

Here is the average times for what our homes take.

1100SQFT - 2500SQFT Cosmetic rehab - Demo, cabinets, counters, mecanicals, paint, roof and flooring and any issues that will need to be addressed with the overall product- 3-4 weeks. Sometimes less.  

1100SQFT - 2500SQFT Complete renovation down to studs and replace everything up to code - New mechanicals, frame work, exterior work, insulation and drywall then all your finishes 8-12 weeks.  Weather plays a factor in the timing.

We hire trade specific subs and pull permits for what we do. 

Hope this help some!

@Thomas Lam  I will only self manage my properties if they are within a certain distance from my home, typically within 30-45 miles.  I like to be onsite ASAP if there is an issue (Fire, flood, blood) and be able to drive to the property and inspect about once a month and do a maintenance inspection every 4 months or so.  This way you are more visible to your tenants and they see you care about the property and hopefully they will too.  WHEN, not if, something goes wrong you will spend a considerable amount time trying to coordinate tenant and contractors to do repairs from a distance.  I always look at it as "How much is my time worth?".  I currently pay myself a PM fee every month (10%) in hopes that when i get further along i can turn all over to a management company and enjoy more freedom.  Good luck!

@Craig Garrow I have the potential tenant fill out an application from my website and then I send them a link to do the background check if they qualify.  I don't charge a fee for my time (10min to look at app), however the background check is $35. They put in their CC info and SS# (takes the liability off of me) and when it is done the report is generated and sent to me within a few hrs. I let them know they have 24hrs from the decision process to move forward with paperwork and non refundable deposit.  Most tenants, not all, need to be told what to do and when to do it or they will just disappear in the wind.