All Forum Posts by: Dustin Mellor

Thank you, Levi. I appreciate your feedback. 

I'm working with some sellers who's house was damage by the previous tenants in multiple ways. The tenants ran their vehicle into the exterior wall causing significant damage. They also trashed and neglected the property resulting in thousands in damage. According to the sellers, the tenants auto insurance is paying for the damage to the exterior but they are waiting to find out if the tenants renters insurance will pay for other damage to the interior (mold, broken cabinets, trashed carpet, etc). My understanding of renters insurance is that it protects the landlord from damage and theft to the tenants property rather than protecting the landlord from damage to the property caused by the tenants (that is what security deposits are for). 

My question is, will renters insurance pay for the damage caused by the tenants, or are will the sellers have to come out of pocket for the repairs? If insurance pays for everything and they do the repairs then there is nothing really left for me to improve as an investors/flipper. If insurance does not pay for the damage then I may be able to help them by purchasing for cash and doing the repairs myself. Appreciate your feedback. 

Sounds like you took action and learned something. That's a win in my book!!

I used umpqua bank in Oregon for my personal residence HELOC. I've had accounts there for 15 years and like them a lot.

Buy with cash to get the best price, then finance it to get your cash out and do it again.

Looks like I'll be missing this one last minute. The electrical tap line to my house just caught fire and burned up so I'm waiting for PGE to come to the rescue. The joys of being a home owner ;). See you all next time hopefully!

Thank you both. Looking further into it I realized the structure is not assembled and doesn't include siding, roofing or the door. So not the great deal I thought it would be. Appreciate the help!

I'm looking at a small 1950s 3 bd 1.5 bath in southern Oregon that does not have a garage. My agent thinks this could be an issue for resale so I'm considering installing a manufactured single car garage from Home Depot on a concrete slab to make it more appealing. Anyone used these on lower end rehab projects? Seems like a reasonable approach. They cost as little as $3000 for a 12x24 structure plus the slab.

@Jay Hinrichs Does the NMLS and state license requirement for loaning on fix and flips apply to private loans? Or is this just for institutions like hard money, banks, etc? 

Thanks @Sherry Shen and @Turner Monroe. I can see how you would not want to get caught in the transition from peak to decline. If I can't buy something for enough of a discount that I'm well protected for 3 to 6 months then it would be very risky at this time in the market cycle when a decline could put you under water. I'm curious what the typical range is that a flipper might budget for in a transitional or declining market? i.e. historically what is the max that the market has declined in transitional or declining market in the time it will take to renovate the property (assuming it goes as planned)? I would want to add this to my criteria as a safety factor.