All Forum Posts by: Emma Chen

Hello all, I am buying an old house in San Diego. The property inspection is done. There are some items we need to fix and a lot updates we want to do to the house. I am looking for a contractor who can walk through the house and give me an estimate. Here are some things we want to do: 1. Replace dry wall in two bedrooms 2. Replace or fix dry wood damage by water 3. Set up drainage system outside of house 4. Check and fix some small plumbing issues 5. Replace popcorn celling 6. Upgrade kitchen 7. Replace current carpet floor to be tile Please contact me if you are or know one in town. Thank you so much. Emma

yeah. it depends on its location and your risk tolerance. 8% COC for a new construction in a nice area is pretty good. do you use leverage ?

signed up!

@Keshav Prabhu

 Welcome!

Thank you for sharing this @Peter J. As I am buying a Turnkey property from the same company/seller. It definitely rings alarm for me.

Please count me in. I will pass along the information to other local investor friends too.

Thank you for organizing this.

@Shawn Holsapple

 do you have any good PM and Property inspector to recommend?

Thank you!

Thank you @Mike Knowles  for the recommendations.

Originally posted by @Mike D'Arrigo:

@Emma Chen 

Is the $95/mth based on an a 1% owner occupied rate or 2% non owner occupied?

I believe it's at the 2% non owner occupied rate but I will double check.  Thanks so much for bringing this to my attention.

Originally posted by @Travis Hamilton:

When you say basement are you referring to the living space below grade/ground? Or the first floor? Is the basement poured/concrete? Or is it some type of walk-out?

Basement is below ground and looks to be constructed of cement block.  It is not a walk-out basement.  We can tell from photos that the space between blocks has been filled in several times.  The seller believes that the changes he made to divert water away from the foundation will keep the blocks from bowing further.

We will of course get our own inspector and possibly a structural engineer to check it out, but what we want to know is taking on a property with these sort of issues considered a bit risky for the cash flow that we're expecting to generate?

Hi BP,

I’m looking at a deal in Indianapolis IN. I found one house on the border between Pike and Washington townships (supposed to be a nice area, please educate me if I’m wrong). My major concern with the property is that there is bowing in the basement walls.

The owner prior to the current owner reinforced the walls with steel beams. The current owner made modifications to divert water away from the house. They added a moisture barrier, replaced downspouts and extensions, and regraded the land within 6 feet of the house to divert water away from the foundation.

Numbers:

$60k asking price.

Revenue: $825/mo rent.

Expenses: $95/mo taxes, $50/mo insurance, $65/mo prop mgmt. + $40/mo re-leasing fee, $100/mo rep&maint.

We can buy either in cash or 20% down. We would probably get a loan ~5% which would give $250 in PITI.

House was built in 1956.

Given this info, would you guys consider this deal?