All Forum Posts by: Jack Srimani

Thanks John and Will for further educating me. I am trying to negotiate the price of this house to see if I can bring it down by some degree. This will give me some leverage to do the renovation without overrunning the expenses.

Hi,
I got the document for analysis of four unit property which was built in 1900. The following shows the summary of the form 8835 (I believe equivalent of schedule E)

For 2008

Gross Rent 16500
Total expense 20400
Total loss 3900

For 2009
Total Rent 19500
Total expense 31000
Total loss 11500

The numbers above are approx.

Also currently out of three working units only one unit is having tenant. While the other two are getting evicted due to non payment of rent. I have posted before in details about this four unit property few days back which had wonderful advises with various aspects of the property. To me this looks like a money pit. To me it looks even worst now as the rent collection is just 450 from one unit. I would invite your opiniion about the prospect of this property from investment standpoint. I just want to make sure I am not missing any 'potential profit' by analyzing the current rent situation and the last two years schedule E reports.
Thanks

Thanks Jon for the nice advise. I am little surprised that the cost of renovation will be so high that the profit scenario will be washed away.

Thanks Will for the generous help. I appreciate it. I checked out the layout and found out that it will not be easy to change the layout to have the master bedroom to attach to the main bathroom. That said I am now thinking that there is a way to do that. Do we need city permit to change layout of the house? The house is close to a elementary school and away from railroads and busy traffic area.

Hi,
I am considering a house for flipping in a good neighborhood. This is a bank REO property. The asking price is 75000 dollars. The comparable properties are 12500. If pruchase price of the property can be negotiated then there can be decent profit. However the concern I have is that though this is a four bedroom house it has one and half bathroom. The master bedroom is not attached to a master bathroom. This is a fifty years old house. So I would like your feedback if having no master bathroom will cause this house (after renovation) not sell. Thanks

Thanks Scott for the advise. I will try to get couple of contractors to get the bids. I am not sure about the risk of getting involved in this project as I am very new to real estate investment.

Thanks Michael for the feedback. So far the way the price looks like it may not be cost worthy to put money in mold remediation. Also the fact that I am new in RE investment without much experience does not help. My main fear is not to be able to identify the source and recurrence of the same problem after spending good money in remediation. I think I will move on to find next house.

Thanks Emily for the nice advise. I am going to do more due diligence and then pursue the right solution for my REI investment strategy. Looks like getting professional help from an accountant and or attorney is required here.

Thanks Rich for the positive feedback. Good to hear that these houses work as investment property.

Thanks Scott for your generous advise. From your detailed explanation it seems that there is a chance that this may not be easy fix. That is definitely some red flag to me. In any event I will take quotes from moisture abatement compaines to see if the project will be viable.