All Forum Posts by: Eric T.

thanks @Hattie Dizmond 

I've looked at the those Porcelain wood grain tiles at Home Depot. Price is about $2.39/sqft material but haven't try to get quote combine with labor yet. These and the Ceramic counterpart looks very nice.

@John Truong  SP is $110k

@Eric Tait thanks, I am 90% sure roof replacement is very much needed. I came across some posting on BP that talk about detecting leak before replacing roof is consider. Just getting more feedback from BP experts. 

@John Chapman, I am considering the following for improvements/repairs

Roof, tile flooring, refinish/paint cabinets, replace restrooms vanity tops, replace kitchen countertop with similar laminate type, replace outdated bathtubs, and some plumbing repairs. Living room and bedrooms do not need to replace carpet as it is still new. 

Paint is new so I wont touch it. I am still debating how much improvement I should invest to achieve better rent rate.

Do you have any recommendation on roofing company best rate for this square footage?

Eric

Dear BP experienced Buy-and-Hold gurus,

First of all, thank you BP for creating such an awesome community to help starting investor like myself. I do have some newbie questions.

I am in the process of acquiring a SFR in Houston and considering the following based on visual inspection and from a Home Inspector.

1) Roof Replacement. No leakage but inspector noted that the roof has aged with only a year left. Inspection have shown there is no leak but it does have signs of deterioration. Two bids so far with cost ranging form $6K to $8K. Should I leave the roof alone for now?

2) Minor upgrades like.......replacing vinyl and carpet floor with tile (areas except bedrooms), Kitchen countertops from pretty roughed shape to newer laminate one, cabinets (kitchen and restrooms) refinish/paint over, etc....... Budgeting $5k for interior improvements/repairs but it is now way over based on bidding estimates. Any recommendation on much improvement I should put in?

I am budgeting 10K for the upgrades/repairs (including roof) but I can't seem to make up my mind as to how much upgrades and repairs I should put in. Current upgrades/repairs estimates is well past my 10k budget based on bids that I am getting from GCs. 

SFRs around this area rent comps at around $1,300/per month. Property built year is 1982 and around 1.87k sqft. 

Eric

Thanks @Tariq B. and @Andres Jaramillo 

Your feedbacks pretty much confirmed that will need to work harder for the right deal. Will keep on looking and learn more from other local investors. 

Thanks for your time. 

Thanks all for great feedbacks. 

Hello All,

I am trying to understand more about acquiring property in probate. What are the pros and cons of going after probate listed properties? Let say a property already gone thru probate process and listed on MLS to be sold AS-IS.

Here are some questions:

1) Do I need a lawyer? Or broker should be enough?

2) What type of verifications do I need from Seller side?

3) Agent not familiar with handling probate property. Should I even proceed to acquire this property with this agent who is representing me?

4) How long typically till closing? If possible, what are the steps to close the deal?

5) Should I watch out for any unforeseeable outcome?

thank you very much!

Thanks @Doug McLeod , 

This is a bit more average deal from the dozen that I've looked at recently. I am exploring rural locations but not sure about vacancy and rent rate compare to more active but competitive areas around Houston. Anyhow, good deals take time but thought that this maybe a good start. 

Agent advised not to lower current offer price due to hot location but will have to see about that. 

Hello BP nation!

I am working on a deal for my first rental property right now. Please help take a look if the numbers make sense. This is a SFH deal.

Offer Price: $110,000

LTV 75% with 4.75% interest.

Amount I put down: $27,500

Loan Amount: $82,500

Rent comps from Agent/Zillow/Hotpads: $1,250 

The following are expenses :

Insurance: $1,500

Vacancy: 10% - $1,500

Maintenance/Repair: 10% of annual income - $1,500

PM: 8% (will be doing this myself but included just incase) - $1,080

HOA: 350

TAX: $2,600

Improvement: $5,000 (minor but needed to bring up standard for rent income)

Closing Costs: Estimate at 4.5% ($4950)

Cashflow: $1,246 

NOI: $7,710

CCR: 3.33%

Not sure if this is too conservative but do cashflow $104/month. 

Thank you for your time. 

Can't wait to network with this group again. Thanks Charlie!

Thanks Charles for yet another meetup! Count me in this time too please.