All Forum Posts by: Ed S.

I would recommend:

Buying a Cen-tech laser thermometer. Harbor Freight has them for under $40. You point it at any surface, and it will tell you instantly the temperature of that surface. This will allow you to determine the heat loss on a non-insulated wall vs. an insulated. You can also use it to determine hot and cold spots in the heating system. It will tell you the temperature of the air coming from a forced air vent, too. You can measure from the inside and outside the house as necessary.

Here are the things I would consider (some of this is repeated from above - all good suggestions).

I'm sure you have thought through this, but make sure you are not in an historical preservation district. If you are, you will not be able to do vinyl windows or other "modern" appointments to the outside of the house.

Assuming you are not in such district, and are not trying to maintain an historical Victorian look, go with double-pane vinyl windows. There is a company in Indiana that will do a standard double-hung for $190 installed. They will come measure for free and then give you a quote. I'm sure there are such contractors in your area. They are nice quality - not cheapo and not high end, but they definitely help with energy. They easily pop out for cleaning. I bet the greatest heat loss is through the windows, not the walls, but you won't know until you test. Also, I would not waste money on storm windows. They are not airtight and typically have low R-value benefit. Avoid the "replacement window" companies that commonly advertise on the radio. They will charge double or triple for the same window.

Add spray foam insulation in between the studs in the lower level. As Michaela mentioned above, you punch a hole in the wall (or sill/base plate, if accessible) and fill the voids with foam. You can DIY this or have a contractor do it. If you have a contractor do it, get three quotes.

I agree insulation for the lower floor. Make sure you observe building and fire code. Some jurisdictions will require you to drywall over the insulation because insulation cannot be left exposed in the ceiling of the basement. This is especially important if there are any mechanicals or appliances in the basement. You may be able to avoid drywalling by using fire-retardant spray foam insulation instead of fiberglass batting. Again, check code to make sure.

If you decide to replace the heater, look at multiple options for your location. E.G. forced air, radiant floor, and split unit heat pump. Make sure your HVAC contractors explain the math used to determine the heater size and type. Sometimes, contractors will come in with a quote for an inappropriately sized unit because that's what they have on the shelf at their shop. I would get three different quotes/ideas to make sure you are getting the proper BTU, price, and CFM (if applicable) on the heater.

J Scott's book on estimating rehab costs is a great reference guide for all of the above. It's available on BiggerPockets as a PDF download.

Good luck!

Welcome Annette. I'm a Hoosier relatively new to the site. I've found the podcasts on the site to be a great source of information. I've listened to #1-39. You can look at the show notes and cherry-pick the ones that would be useful to you and your clients. Good luck!

The high DOM would appear to indicate that it's priced too high, or that the 72 hour requirement has prevented bona fide offers for being accepted already.

The buyer VIP agreement I saw was an agreement to lock me into using the buyer's agent for a specific period of time for "house hunting," finding you the perfect home, etc., and eventually closing a deal. There was a kicker in there for the agent should I decide not to purchase from the BA within six months. I would never sign that, since I just needed representation at closing and had done all of my own due diligence and had been prequalled. If you fall into the same category, I would avoid signing that.

The VIP agreement seems to be more for retail customers where the agent wants to avoid wasting time with tire kickers with no money lined up.

As for the admin fee, that's the agent's cost of doing business. They are trying to pass that cost onto you to make more money on your deal. I would not agree to pay it unless its a fixed cost they pay for every deal, and the buyer's agent commission is tiny on your deal, but that's my personal preference. In the end, I believe that the buyer's agent should be fairly compensated for their time and effort.

I will be there unless something goes crazy at work.

There's a Paradise Café at 96th and Meridian right off the interstate that's reasonably priced. Everybody can go through the line and order their own food. They have Wi-Fi. I do a lot of meetings there. As is the case anywhere, somebody will need to go stake out enough seating for the group.

Erin,

I'm assuming you are talking about an Indy property.

You will lose both exemptions in 2014. To be safe, calculate your tax starting in 2014. Seller should cover 2013.

In Indiana, primary residences are taxed at no greater than 1% assessed value. Rental/income properties are capped at 2%. Assessed value is neither sale price nor appraisal value. It's a complex calculation that most assessors, can't (or won't) even explain.

You can determine your assessed value by going here: http://cms.indygov.org/MyAssessedValue/

You can also appeal once per year, but be aware that some assessors punish those that appeal by raising rather than lowering the tax bill. This happened to me in Indy.

Hope this helps. Good luck!

Ed Simcox

Krista,

I know of a portfolio lender that will do a blanket loan for multiple properties but not sure if they can do that many. The max may be 7 or 8. They are in Ohio. I know they lend in Pittsburgh, but not sure about your location.

Good luck.

Ed

Hello all,

I'm looking for an Indiana lawyer that specializes residential real estate investment transactions and landlord tenant law.

Also looking for a CPA that is very knowledgeable in using SDIRA for real estate investment.

@Brandon Turner, thanks for the warm welcome. You are doing a great job with the site and the podcasts.

John,

Thanks for the welcome! I'm planning on attending the CIREIA meeting this week. I actually belonged a long time ago. If you call the director, she will give newbies a coupon for a free first meeting. I'm looking forward to meeting folks.

Dave,

Thanks for saying hi.

I'm a big fan of LLCs for Indiana businesses. It's a lot of protection for the $85 Indiana filing fee. You can set it up on line: http://www.in.gov/ai/appfiles/sos-registration/landing.html

I tend to agree with Greg Boots on why they offer protection:

http://www.biggerpockets.com/renewsblog/2009/03/18/asset-protection-misconception-insurance-isnt/

They create a separation between your personal assets and the property (as long as you observe some simple rules as listed in Greg Boots' article). Trial lawyers will go after everything you own, given the chance. LLCs prevent that and limit the exposure to the assets in the LLC.

With that said, Kevin's in Tennessee, which isn't as business friendly as the Great Hoosier State. They seem to have more reporting requirements than we do. I can understand his position, but I'm the careful type. Plus, and Indiana, you can avoid having to conduct annual meetings and filing lots of paperwork if you keep your LLC articles of organization simple.

I may spend more effort choosing the name of my LLC than actually creating it :-).