All Forum Posts by: Dave Grimson

in my opinion this is one of the most difficult aspects of real estate investing - getting a good reliable team in place.  Even if you have the time to do most of the work yourself, you will still need some experts to "bless" your work or finalize items if you are not a licensed electrician for example or replace a boiler if you are not HVAC certified.  There are always good contractors out there but in my area (Connecticut) they are usually booked so make sure that you are networking and building relationships with these people.  I like to take my people to potential homes before making an offer if possible, that way you can get an estimate, book them for the job if you do end up getting the property and they already have the details for a work order.  The costs will come down as you build good systems and a good team with repetitive work, but that will take some time.  Just know that your margins might be a bit lower as you are starting out.  Hope that helps.

Sean Richway - What's the repayment schedule on your loans?

Thanks Wayne, appreciate the response, sounds like the bank just wants to cover their own ***.  I think i'll need to get an expert in there to check it out

Shaun, Lead was my initial thought but the home was built in 1980 so thats ruled out.

So, in my eyes, that only leaves mold - however, i didnt see any sign of water damage during my first walk through

Looked at a house that has some potential for the BRRRR strategy but have a question i'm hoping someone has some experience with....

Its a bank owned property (REO) and they slapped a quick coat of paint on basically the entire interior, then put this sign up everywhere. Has anyone else seen this before? I asked the selling agent if it might be mold but she says that she asked the bank but they're not giving her any answers.

Any help would be greatly appreciate, looking to make an offer.

Thanks,

Dave

Kevin,

Looking for some off market deals - i'm a licensed real estate agent so I have that angle covered, looking to get some traction on properties you wont see on the MLS.

Towns are Enfield, Suffield, Ellington, Manchester, vernon, bloomfield.  Less than 100k 3bed 2 bath and at least one garage is ideal.

Either a BRRRR strategy or straight flip is my target

If you want to grab a coffee (or beer) to discuss details let me know and we can meet up

Thanks

Dave

Looking for a good wholesaler(s) in Northern Connecticut, specifically north of Hartford in the towns near I91.  

Anyone have any recommendations?  Please PM me with details

Thanks in advance,

Dave

Jenna,  I've found Enfield  and and a few other neighboring towns (E Windsor, Windsor Locks, Ellington)  have many opportunities for buy and holds, particularly in multi families - the property value is below neighboring towns but the rentals support a decent cash flow.  

Let me know if you have any questions at all!

Good luck

Dave

Michael Le, appreciate your input and the time to crunch the numbers on this.

Couple questions, If I will manage the property myself, should I need to factor in the entire 8%?  In my market typically property management is about 5% ( I actually manage a couple properties now) - with that said should I factor in about half that for other costs?  What would those costs include?

Also, your right, it would be smart to factor in a larger cap-ex, what do you typically use for a percentage?  

Based on your thoughts and a couple tweaks, lets try this again....

Management -  5% - 119

Insurance - $125

CapEx - lets bump it to 10% - $237

Taxes - $291.33 - $2495 /yr

Repairs -   10%  -  $237

Interest and Principal - using the Bigger pockets estimate, this came out to $420.13 /month based on an $88,000 loan 

Vacancy - $118.75 - 5%

Electricity $150

Water ad Sewer $50

Propane tank lease - 25

Heat  - $75

(Tweaked some of the utilities after learning more info from the seller)

Total expenses comes to $1848

$526 Cash Flow -  $263 per door

Next step is getting a contractor to take a look at the roof and foundation, if that turns out ok I might take a stab at this one!

Went to look at the property today- unfortunately only got to see the side with the tenant and not the on that was redone. House has been well maintained, fresh paint job, newer Windows and has a great view of a little pond across the street. Two question marks stood out: 1. the roof was sagging down in the middle of both units. Shingles were in decent shape but a little unsettling- to have to replace an entire roof would be devastating. Need to get into the attic to take a better look( the attic Accra was only from the unit I couldn't see). Old homes are very common in my area (my home was built in 1830) and many of them sag like this one but does anyone have experience with this? Repairs needed? 2. The brick foundation had a bad spot at the front of the house. Not a large area, about ten bricks wide, but the mortar was worn away and some loose bricks. What would be the cost to fix something like this? Or is this one of those repairs that can quickly add up once you get in there? Thanks!