All Forum Posts by: Derek Petersen

Hello,

I organize a very small meet-up in Encinitas. The focus is "Buy and Hold" and the only requirement for attendance is that you currently have a rental property. We have a few guys just getting started and some doing large apartment deals out of state. I don't have speakers. It's really an opportunity to go around the table and talk about whatever the heck you want to hopefully related to real estate. That's it, and most of our turn outs are about 4-10 people. If anyone is interested and meets the one requirement above, feel free to send me a message.

I'm currently seeking a real estate assistant in North County San Diego (specifically Carlsbad). The ideal candidate would have a bookkeeping background, a knack for organization and developing procedures, able to do it all including administrative tasks, entering owner statements from various property managers into property tracking software, calling property managers to decipher owner statements and pressure them to increase income and decrease expenses, able to understand basic construction and rehab, lease out units locally and screen tenants, and the list goes on. If you are an aspiring RE investor or know someone that would be a good fit, please contact me via email.

@Tiger M.

There is definitely equity in the property - say $30k min.

There will be a mortgage inside the contract and I haven't moved forward with these guys yet so I don't have the documents to answer specific questions regarding acceleration clauses. 1st position of course, owner occupied, and in the Midwest.

I'm going back to MN to visit family and plan on checking out his operation.

I'm considering purchasing a seasoned land contract inside my ROTH IRA. The property has been rehabbed and is in good condition. The details of the sale:

Note sale price: $63,500 (my price), Land Contract Sale Price:$74,973(current contract balance),Land Contract Sale Closed:2/26/14 (seasonsed), monthly P&I: 606.69, Interest rate: 9%, Ammort 30 year, Balloon Date 2/26/19.

So in a nutshell, I get 9% annual plus a bump between the note price and the remaining owed at payoff, about $8632.00

Who you do this deal? Any cons of holding this in a self directed Roth? The due diligence would be similar to buying a rental property, plus having the contract reviewed by an attorney. I appreciate any feedback. I have invested in trust deeds but no experience with land contracts.

3R's appliances has a nice inventory of used equipment. 

Would you buy this note on several residential homes in the Atlanta market? I haven't done any long term lending in the past, only 1 yr balloons. I guess I'm at risk during a high interest rate environment if one should develop? Upside on long term note is a better yield. 

Any other considerations?

The San Diego Buy and Hold meetup is meeting monthly. Feel free to contact me for more information. We are a group of investors that are actively building our long term portfolios nationally. We have investors focused on residential, 2-4 MF, and apartment investing.

More AC questions:

Ok, we are in escrow on a 4plx in Phoenix. 3 Ducane heat pumps and 1 Trane, all installed around 2005. 2 of the Ducanes are apparently not cooling properly. Is this likely the end of their life span? From @steve toth, I gather that you're lucky to get 10 years. I'm buying this at a 8 cap/12% CoC, so not a home run but a solid base hit. If I need to replace 2 heat pumps out of the gate, my numbers drop and I need to reconsider. What would you do?

Hello BP,

You guys had plenty of info for me when a furnace went that I thought I would now ask you an Air Conditioning question:

1. Based on the info provided, does it seem to be solid advice to replace the entire unit?

2. If I'm replacing the unit, does the scope of work/price seem fair?

This sent to me by my PM:

"Upon inspection of the heat pump system I found the refrigerant charge very low. This is a clear indication of a leak within the system. I performed an electronic leak search and found the air handler evaporator coil leaking. Due to the age of the system (16 years outdoor unit) (11years air handler) and the current EPA phase out of the old r22 refrigerant I recommend the heat pump system be replaced.”

Neither company is willing to replace any parts on the unit due to the age and not being able to warranty them.

Here is the scope of work for the price of $3750

Install one new indoor air Handler with 10kw heat strips,

Transition duct work to fit the new air handler,

Install outdoor heat pump,

Connect all high and low voltage wiring to indoor and outdoor units also to the thermostat,

Install in-line PVC P-trap

Clear PVC drain line,

Evacuate system and charge with refrigerant,

Check/test system.

Install Honewell digital programmable heat pump thermostat

Complete system install will come with a 10 year all parts and labor warranty.

What do you experts think? Please address 1 &2 above.

Thank you!!

Thanks very much for insight and advice. Getting a second evaluation was the right call. Pilot light was still functioning and apparently wasn't staying lit for another reason. Total bill $137. I know applying a band aid isn't always a good call, but if I can get a few more years out of it, sure, sign me up. Plus we are turning this unit after being rented to the same tenants for 10 years, so it's costing me $3000 for paint and floors, and don't need a furnace expense added to it.