All Forum Posts by: Andrew D.

@Glenn McCrorey Yeah lets just just keep that to ourselves!  I've seen Epic listings and they seem sky high but it seems like they're getting them rented.  Of course house prices are going up here to so it looks like 2009 till 2014 was the right time to buy.  I really haven't seen any good deals around lately compared to the good ole days.

I have seen quite an increase in rent prices in the Cedar Rapids area.  I generally try to keep rents stable for my long term renters but when I do have a vacancy I'm seeing a sizable rent increase.  At least 10%.  I just keep an eye on Craigslist and Facebook to see what comparable houses are going for and price accordingly.

@Ashly B. Does Mid America supply the gas in your area?  If you buy the highest efficiency furnace you can get an energy rebate of about $900.  The average lifespan of furnaces is 17 yrs. but they can of course last longer.  

One thing to consider is a furnace going out in the dead of winter can be a big deal.  I've had 2 go out one was on a Sunday so the labor on the repair was double time and the other time it was late at night.  If its affordable enough to do I'd say get it out of the way now or find a reasonable furnace repair company that has 24 hr service.

I recently purchased a property in Cedar Rapids, IA that has no garage.  It is a 1960s built house in a nice neighborhood.  The backyard is huge and could be a nice oasis.  Its way larger than most of the neighboring lots.  It also has more than enough room for a 2 stall detached garage.

My question is whether or not to include building a garage along with my regular house renovations.  The lowest bid I've had on the project is around $16,500 for the concrete and garage erection.  That puts my reno budget on the high side at just over $30k.  

The house is located in a cookie cutter neighborhood of only a few different house designs.  About 80% of the houses have garages.  The house across from mine is the same as mine with no garage and sold recently for $100k.  I bought mine for $67.5k and could have it just as nice as that one for around $80k all in.  My guess is that I could rent it for $1,000 to $1,050 in that case and that would reach my cash flow expectations.

On the other hand a I could splurge on the garage.  If I add that large expense I could probably get $1200 but that might be a stretch.  Much over $1200 in my area you are getting either more bedrooms and baths (this is a 3 bd, 1.5 ba), or a newer house.  So I'd only gain about $150 a month so it would take years to re coup my initial investment.  Most of the houses with 2 stall garages are selling in the $110-125k range depending on upgrades and if they've added a 4th bedroom in the basement.  My guess is that the garage would just add the initial investment in resale.

The other thing I need to consider is how long it will take.  All the concrete companies are booked up so it could easily be late July for this to happen.  The conclusion I keep coming up with is to renovate it the way I usually do and then market it for $1050.  I could finish job in June and shoot for July 1st move in.  The rental market is huge here around that time.  That way I could get it finished and rented and move on to the next house.  I know there will be people that walk away based on no garage but there will be others that really don't care as long as there is a shed for a lawn mower etc.  There is a driveway for 2 cars so there is currently off street parking.

Should I take the extra time and money to build the garage or just do the quick reno and move on?  What would you do?

@Freddie Taylor 

I myself got my start buying houses in less desireable neighborhoods.  I think its a good way to get your feet in the door and all mine cash flow very well.  After buying several of these I have been able to move up to nicer houses in better areas.  Occasionally when I have one come vacant I'll put it on the market so I'm slowly getting rid of them.

All of these properties cash flow great with 15 yr mortgages.  If they can do that and also keep good long term tenants why not keep them?  You never know sometimes neighborhoods in my area will have good/ bad cycles and if I had bought during the bad I'd definitely sell when the area comes around.

@Jay H.  Great job!  Secret sauce please!

@Adam Moehn I personally replace fuse boxes with breakers most fuse boxes in older houses are not equipped to handle what we run these days and they're usually double tapped or someone's put in to large a fuse making it ineffective.  I know of several local contractors that will upgrade to a 150 amp breaker box for 12 to $1500. 

To go to 3 prong can be very expensive especially in 2 stories because to do it properly you have to replace all the wire.  I used to ask what it would cost to and was always told time and material cause they have no idea what problems they will have until they get the wire pulled. I'd say its far more cost effective to give them the 2 to 3 prong converters or you could put a gfci outlet in every room that way they've got at least one 3 prong outlet per room.

I might check into that card as the cap on the 6% gift cards is $6000 and I spend well over that!  I wonder if they'll let you do the 2 in conjunction?  I know at HD they wouldn't give me bulk pricing AND military discount I had to pick.

With tax time approaching I began looking through last years receipts and am realizing just how much I have spent on building materials.  I wanted to share how I am beginning to try and save money on these things in 2015 as well as see if anyone in the Cedar Rapids, IA area has been doing any of this or has any of there own tips.

I am prior service ARMY National Gaurd so I take advantage of the 10% military discount at Lowes, HD and even Ar Jays.  I know that this is not an option for everyone but as a veteran I do take advantage of this any time I buy from these places.

At the building supply stores I set up an account.  Most of these places give a discount based on volume of items bought there or based on your employer.  I pay less for very good quality paint at SW and Klingers than the mediocre stuff at box stores based on my volume buying discount.  Just by setting up an account you will save over list shelf price.

Another thing that I am just beginning to implement is a little more extreme and you have to think a little bit ahead but with a little planning most people can do it and save good money.  First I got an American Express Blue Cash Preferred Card for my business credit card.  It has a $75 annual fee but you get $150 back after $1000 charged in first 3 months.  This card gives 6% back at grocery stores (6,000 max) and 3% back on gas.  The beauty of this is that you can buy $100 gift cards to HD and Lowes at grocery stores.  The local Hy Vee has a fuel saver program that you get back $.20 per gallon on up to 20 gallons for every $100 gift card.  With the $4.00 in fuel savings, 6% cash back and 10% military discount the savings can really add up.

I know the credit card, fuel saver combo will not always work as I may not always work as you may not be close enough to either HD or Lowes but its good if you know you'll be having a large item purchase at one of these stores.  I nuy all my water heaters from HD and Lowes usually has pretty good appliance sales.

Has anyone else in the area implemented any of these strategies?  I don't usually write such large posts but its a bone chilling cold day out and I'm looking for any reason to not get out from under the covers: )

Welcome to BP @Lori Bouska  good luck getting your restaurant back up and running!