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All Forum Posts by: Jerry Bredesen

Jerry Bredesen has started 3 posts and replied 28 times.

Post: solar roof for flipping?

Jerry BredesenPosted
  • Real Estate Investor
  • Plymouth, WI
  • Posts 28
  • Votes 10

Proceed with caution. Even with the current subsidies, solar energy systems don't generate enough power to pay for itself over any reasonable timeframe. They're getting closer to break-even, but they're not quite there yet. Ditto for wind power (even the giant windmills springing up all around the country).

But it wouldn't hurt to ask the salesman for a detailed break-even analysis. Maybe he/she can prove me wrong.

Post: Tenant left appliances, question....

Jerry BredesenPosted
  • Real Estate Investor
  • Plymouth, WI
  • Posts 28
  • Votes 10

I have a different philosophy. I usually provide all appliances, including a built-in microwave if possible. I go with basic low-end appliances, but I make sure they all match. And I won't buy used unless they look almost new. Tenants seem to appreciate the extra value, and most of them stay with us for years. Basic appliances are also fairly reliable, I don't think we've had more than a few service calls over the past 5 years. 

We set our rents a bit higher than average for the area, and we make sure all prospective tenants know we screen carefully.

Post: How Much Weight do You Give to Price per Sq. Ft. During Acquisition

Jerry BredesenPosted
  • Real Estate Investor
  • Plymouth, WI
  • Posts 28
  • Votes 10

I don't put much stock in the cost per foot figures. It might be somewhat meaningful for the retail buyer, but even then only if you're comparing identical properties - same size, condition, neighborhood. As an investor, I'm mainly concerned with the cash flow. 

Never try to catch a falling knife. You can never be sure how low the bottom may be. 

Post: What is your trigger point?

Jerry BredesenPosted
  • Real Estate Investor
  • Plymouth, WI
  • Posts 28
  • Votes 10

We buy highly distressed properties in good neighborhoods to rehab & hold, but we evaluate each deal as though we intend to flip the property. We've found problems with every metric, but have consistently done well as long as we don't invest more than 75% of the after repaired value.

Post: Duplex vs Half plex…confused ?

Jerry BredesenPosted
  • Real Estate Investor
  • Plymouth, WI
  • Posts 28
  • Votes 10

It's difficult to find value buying a half-plex, but you can do very well by converting a duplex into two legal condos. You'll have to create the correct legal entities for your area, but once you've figured out the process it's just paperwork. Splitting the property into condos could increase the total value by 40-50%.

Post: Cost to Replace Gravity Furnace

Jerry BredesenPosted
  • Real Estate Investor
  • Plymouth, WI
  • Posts 28
  • Votes 10

Forgot to mention - I probably saved $10-15K on the purchase of that house due to the ancient furnace and asbestos. Most retail buyers won't even consider a house with a major problem like that, but I look at it as a bonus. The seller is paying for a new furnace either way.

Post: Cost to Replace Gravity Furnace

Jerry BredesenPosted
  • Real Estate Investor
  • Plymouth, WI
  • Posts 28
  • Votes 10

I recently replaced a gravity furnace in an older cape cod, and mine still had asbestos-wrapped ducts. It cost right around $6K including removal, a new furnace with central air, and all new ductwork.

I've never dealt with asbestos before, so I paid a licensed abatement company $800 to remove and dispose of all the existing ducts. It only took them a few hours so I maybe could have found a better deal. Removing the old furnace cost nothing because I found a scrap metal guy who did it in exchange for the metal. He and his helper had it out in about 3 hours, and he got $160 for the cast iron. I then hired a local HVAC company to install the new furnace, AC, and all new ducts for $5,100.