All Forum Posts by: Edward L lauckern

For you first property I would try to get a decent ROI . Look at what the cap rate would be if you bought ( expenses verses income.) How long will it take you to recoup your money . I dont have one in investment that is less than 20% cap rate. (I do my own managment) but it is a balance when looking for a good property .. you dont want to over spend, but at the same time you dont want a crap hole either. Good rule I use is, if I wouldnt live there then dont buy it. Single families are great for many reasons(usually less stress but less cashflow too) single families usually have a lower cap rate than multi units(more money but slightly higher stress). So it's a balance, you have to go with what you will be happy with. Your investment needs to be worth it so you continue to invest. Look at local adds to check rent prices on similar homes etc. Deduct what you estimate your expenses to be example.. $1000 rent -300 expenses is 700$ x12months 8400$ divided by all in purchase price with closing costs etc. 100,000$ house equals 11.9 years to get your money back... divide 11.9 by 100% equals 8.4% cap rate ... (this is how I do it) so in this example 8.4 is too low for me I wouldnt even do a walk through.

I agree but then again I'm not an appraiser 

In my opinion, your first property can make or break you. You want a solid roi with as few hassles as possible so you need a solid property( there's a balance point to look for). you dont need the best property but you dont want the worst either. Single families are great for many reasons but the roi isnt as good as two or three units (at least in my area). Make sure you do your due diligence. I would start with a duplex if it were me, so I can get the best return (your money goes further) If you get a weak return you're going to be in this and when something goes wrong it's not going to be worth it and you won't like REI.

I own 11 units in central NY all within close proximity to me. I do my own management on all the properties. I have had opportunities to buy outside of my area but I dont feel as though it's a good idea, (what if something went wrong and I couldn't get there) all I see is high risk. am I missing something? I'm looking to see what experiences other investors have with buying outside of their areas, where management companies have to take over. Compared to investing locally. Is it worth it?

Only saying this because of the situation described is evidence of water hammers .. in my experience when the dwelling is left unused for a period of time.  If a tenant was in the property and zero issues were reported   and water was turned off at the time current tenants left said property .. poor plumbin(or some other factor) but water hammers at the joints is what I am hearing from what i can read from what is said ... and yes pressure test is a true thing I use them on all vacant usually.forclosed properties ... it's usually the only test I require on vacant properties 

Terrible situation! Never rely on a *managment company*  its obvious that your water was never turned on when  you purchased the property! Your situation is evident of neglect and only neglect.. always do pressure test on plumbing with vacant properties! 

Fans yes  .  But absolutely not a big deal .. if that's all you have again I'm looking at the picture you posted. Fans fans fans .. gravity will pull the water down fans will dry .. you may have stains as rust or dirt is pulled down through the drywall 

from the pictures? that leak is nothing.. cosmetic repairs only and or possibly. Sorry for.your situation .. from what I am hearing this isnt a  good area to invest .. minimize your loss and reinvest there are way better places for your money 

I'm in NY so it's very different because I dont know your laws. But i would definitely offer them money to leave .. leaking ceiling is not a reason to replace it .. it will dry provided the problem is corrected. 

One thing I have done in the past with problem tenants. Is just pay them to leave. It minimizes your long term losses. And relives then.of an eviction. I've never had a court eviction (knock on wood)