All Forum Posts by: Frank Hotard

@Michael K Gallagher Thanks for the response. It's reassuring to hear it's not a rare nightmare scenario I'm in. I didn't mention it in the post, but I am forced to move because of military orders. My fiance has orders to San Diego, and I will be separating and moving with her. However, it's feasible for me to hold onto this property anyway and fix these issues regardless.
And yes, the mini-split has a unit for each room.

Good Morning BP,

I bought my first house last year in Suffolk, Virginia just to get started in the real estate game. It is a remodeled 2/br 1.5 bath, 832 sq. ft.. My intent was to move within a year and rent it out, but we have been having unforeseen expensive issues that I am looking to get advice on.
1) HVAC: Our biggest issue. It is a Daikin mini-split. The cold air often runs out in the summer and the heat doesn't turn on in the winter. We've had a couple HVAC techs recharge the refrigerant and one recommended replacing the entire system. I don't have the capital to replace the HVAC at this time or the credit to finance it. Is replacing the HVAC with a completely different unit the best solution? Are all Daikin units prone to failure?
2) Electrical: Because we have no heat, we've been using two space heaters. One of them caused an electrical fire and burned out an outlet. FD came and red tagged the outlet. I have an electrician coming tomorrow morning to troubleshoot that. My gut feeling and research is telling me the sellers did a poor job on the breaker panel and wiring. What should I expect the cost to be?  Is this a common issue in remodeled homes?

3) Washer/Dryer/Water Heater Tank: The house has a space tucked away for a washer/dryer, vents and all. The problem is, there's the giant water heater tank in the same corner that takes up quite literally a 1/2in too much space. We tried having the smallest washer/dryer installed, but the install team couldn't make it work. So we have been going to a local laundromat for laundry. I have been researching tankless heaters, and I'm leaning towards an electric tankless heater to save space and finally be able to wash laundry in-house. Are tankless heaters a viable option?

So, in essence I would be listing a house for rent with no HVAC, shoddy electrical, and no washer/dryer at this point. The remodelers we purchase the home from did an incomplete and unprofessional job. If were a tenant, I would never want to live here. In hindsight I probably should have gotten an additional HVAC-specific inspection and tested the measurements for the actual washer/dryer space. I will do this in the future.

Would you sell this home as-is and likely take a small loss, or hold it for the long run and upgrade the home as needed until it was rentable? Purchase price was $179,000 and mortgage is $1,420 for context. TIA

@Christopher Jason Lloyd That's exactly the area I'm looking to invest in. Sending DM

@Kyle Deutschmann Thanks for the info. DSCR loan looks like the best option for my position. Sending DM for contacts.

Hi BP crew, I am a new Pro member in the DMV area. For getting started, I'd like some expertise on my strategies.
For context, I have a 665 credit score and a 70% DTI. I'm active duty military and am building a second source of income to fuel my real estate investments.

1) Residential Development: I have a deal under contract to own a lot of land in the Gulf Shores area that I want to build two residential properties for a long-term rental. Already have a builder. Will I be laughed out of the office if I pursue traditional lending for new construction, and is private lending going to work with a brand-new investor in my position?

2) My renting lease is up in March and I PCS July 2024. I want to quickly buy a rental property to occupy April-June and then buy another at my new duty location. Is this feasible? Less-optimal but still the plan is to extend my lease until June, then buy a house-hack at next duty location.

Advice appreciated. Love this community so far, open to networking here and in real life.

P.S. I already have a real estate business formed in Wyoming remotely in preparation.