All Forum Posts by: Drew Farnese

Yeah, forgot to post! The mold guy came out and quoted 2 ways, one with doing the demo and cleaning the foundation and duct work. About 8 grand. He also quoted factoring me doing the demo and him cleaning the foundation and duct work about 6 grand.

I was absolutely amazed at the high price. I did however pick his brain enough to be able to figure that there are no restrictions or reasons as to why I couldn't do the whole job myself. Mold is not too complicated. It drys up, it dies, you clean it..... big money business though. ....

Anyway, someone ended up buying the place out from under me. Don't know what they paid, but it was more then I offered. If I paid a dollar more the deal would have no longer been a deal.

On to the next!

Thanks everyone!

Thanks @Bill Gulley , but this is an REO. Forgot to mention that in the original post. I WISH I could get seller financing on this place. It's got so much income potential that I hate to let it pass.

Hey guys!

I found a 3500sf tri plex in my area that just listed on the MLS. It is listed at 92,900. First floor 3bd unit, needs a kitchen, otherwise in good shape.

Second floor is gutted down to the studs. Would be 3bd 1 bath.

Third floor needs some ceiling drywall replaced due to some water. 1bd 1 bath.

As a quick guesstimate, I figure it needs about 100K in renovations. Needs roof, all new siding, all new windows (45 windows). I figure this alone will put me around 60K. From there I have to redo the kitchen on the first floor, complete build on second floor, and some tlc on the third floor.

Its hard to find comps for this place, as theres not too many multi units of this size in the area, but I figure it should be worth about 250K ARV, but more importantly, even if I'm all in at 200K after renovations it should cash flow about 1200/month after PITI, vacancy, expenses, and mortgage insurance.

(I will be living in this place for a year or two, all my figures account for me NOT living there however)

HERE'S MY DILEMMA.

I only have enough buying power to finance about 150K, because the taxes on this place are $7500.

Here's what I've considered, but please give me your thoughts!

Buy for $93,000 with FHA, 3.5% down, 203K loan for $60,000 to finance the roof, siding, and windows. Finance all the inside renovations with hard money and refinance once completed and pay back hard money loan. I don't know if this would work or not, but I do know that I REALLY don't want to pay hard money interest rates.

Other option is

Buy for $93,000 with FHA, 3.5% down, 203K loan for $60,000 to finance the roof, siding, and windows, then live in the first floor and renovate floors 2 and 3 cash by myself as the money and time provides. This seems like it could end in a never ending project.

What are my other options? I don't have any friends or family with large sums of money to lend me :/

Great stories everyone!

@michael, yes this is what your getting into haha. Can't wait to hear of your experiences!

Thanks for the replies everyone. I want to rip all the drywall, carpet and laminate flooring out myself and have a pro clean the foundation and duct work.

I have a mold remediation guy coming out tomorrow. I'll pick his brain and let you guys know how I make out.

As for fixing the source of the water, I don't think that's an issue. There is a sump pump, it just didn't have power during the hurricane and the water just sat.

I talked to a few neighbors on the street and asked if they have water problems and they all said no, they have sump pumps and theyr fine.

Hey guys.

I'm looking at a Fannie Mae Home Path property. The guy that used to own it stripped it and left. By talking to some of the neighbors I learned that the house was vacant (and no power) during hurricane Sandy. Looks like there was 2 feet of water sitting in the basement for a LOOOOOOONG time.

It was a finished basement.

My question is - can I demo, remove and dispose of all the moldy sheetrock myself or does a certified company have to do it? I talked to a guy from a restoration company and of COURSE he said you had to be certified....

If I have to pay a certified company it would probably put me over budget and make this deal, well...not a deal.

Thanks guys!

I had some pictures to share, but the site won't let me upload right now

Some great war stories here! Hopefully this keeps going!

To follow up with my original story, I'm told the state police were at the house to investigate the dead dog later that evening. When my girlfriend called the SPCA they considered it potential animal abuse and called the police to report it. Apparently the state troopers patrol that area. Hopefully it worked itself out.

@Lisa Troxel

You're right, it CAN be beneficial to have the tenant there. I'm new to it, thats all. Obviously though, some crazy stories can arise from these situations haha.

@Rob K.

I often laugh about the term "unit" when used in funny context too haha. That is hilarious!

@Robert Haworth

I think your story takes the cake on funniest!

Though I'm sure it wasn't too funny when you thought it was a real body!