All Forum Posts by: Gabriel J.

When I did the financing for the property, I was only able use a certain amount for the rehab. The 'cash' I was able to use for rehab was more than what the contractor bid, so I felt confident in case of any unexpected costs. However, the amount quickly dwindled and unexpected costs became more frequent. Suffice it to say, I only have 15k left, before I have to use my personal cash to finish it.

However, I would cash-flow around $500 a month. CoC would be mostly infinite. I don't know, maybe if I finished it out it would be worth keeping at that point - to make it worth the trouble! haha

Thank you for your advice, it was appreciated and you gave me some things to think about!

Bought a property that was going to be a good deal. I've learned this may be a typical scenario, but Contractor gave a lower bid than the rest, seemed like a good deal. Gave me a price breakdown, subs he used, etc. After I signed the contract, he didn't start till 2 months later due to "family emergencies", COVID, etc. I gave him some slack. But also didn't want to shop for other contractors.

After he eventually started working, come to find out his subs were retired, and he hadn't used them in a while. Plus, he would have his guys there some days and then be short a guy here and there. Some days he wouldn't work. Eventually, we got a rough in on the plumbing, had to get a permit for all of it.

Eventually I fired the contractor, had him and all subs sign a waiver of lien. And now the permit has expired. It has been for sale for a couple months now, undone. With only 15k left in the repair funds that was financed to me.

Luckily, my one other property resigned another lease and I was able to increase rent to wear it is able to bear the payments on the house that isn't finish wear I am atleast still making $75 a month haha.

It needs electric, hvac, and finish work.

Any ideas? Should I just keep it for sale or finish it?

Does anyone have any pros and cons for using metal studs instead of whitewood on residential projects?

Pro:

For me are they are cheaper right now. Just an example: Lowes is selling a 2x4x8 whitewood stud for $5.96, compared to a 25g metal stud at $3.24. The dimensions are comparable, but a little short. However, for additions, it may not matter. For repairs, I would imagine I'd need wood to keep it the same. Which is also my Con.

Con: Not consistent.

Does anyone have any pros and cons for using metal studs instead of whitewood on residential projects?

Pro:

For me are they are cheaper right now. Just an example: Lowes is selling a 2x4x8 whitewood stud for $5.96, compared to a 25g metal stud at $3.24. The dimensions are comparable, but a little short. However, for additions, it may not matter. For repairs, I would imagine I'd need wood to keep it the same. Which is also my Con.

Con: Not consistent. 

I am interesting in purchasing a property that was build in the 40s. its a triplex, 2100 sqft. I partially don't want to test the popcorn ceilings to see if it was made with asbestos. Does anyone have any recommendations to avoid this problem? In my area (SW-MO) it is about $5 sqft for removal. The ceiling does not need repair. However I was going to install new lighting. 

I was contemplating installing a drop ceiling system which would allow flexibility. 

Anyway, has anyone ever ran into a problem with asbestos ceilings, if so, what would you recommend?

I am also an investor in Springfield working on a second deal! I also work full time! Which is a challenge but hey, I love it so far! If I can offer any help let me know. BP has be instrumental in what I need to know. We have local meetings. I've only been able to go to one, but it was great. Check out @Hugh Carnaha

Thank you @Tim Herman!

Does anyone have any advice for managing a triplex? Or are there things that you were required to do on a multi-family property that you were not aware of? 

My lender needs an appraisal and by extension the appraisal company will do a thorough examination to provide an ARV for the lender to use. They are basically doing a Construction-type loan like a LOC (as was explained) but to do that and to make sure they have done their due diligence, they want to provide an appropriate ARV. However, I am unsure how the offer should be worded in case the ARV comes out lower than expected (call it lack of faith in the system, whatever). I just want to make sure I have an exit strategy in case my numbers don't fit. I do not believe it would be covered as 'unable to finance' because it may still come back at below market value. Any help would be appreciated.

I am caught between 3 different houses to purchase. One is a turnkey and has high equity but the rental market isn't that great so I wouldn't be able to have great cash flow. The other 2 needs about $35k in repairs, decent equity, and may be able to cashflow more. I can only do one right now, but I think I am stuck in Analysis Paralysis!

Here are some numbers based on zillow:

House 1: 2/1

Estimate $100,000

Purchase: $69900

Repairs: ~$5000

Rent: $750-$850

House 2: 2/1

Estimate:$100,000

Purchase: $40000

Repairs:$35000

Refinance: $82000

Rent: $800-$900

House 3: 2/1

Estimate:$75,000

Purchase: $20,000

Repairs:$35000

Refinance: $65000

Rent: $800-$900