All Forum Posts by: Jack Srimani

Thanks everyone for the illuminating response. I need to do more research to know more details about forming a legal entiry like LLC. In any event I have some idea now and good advise as starting point to go forward.

Thanks for your advise Steve. I appreciate it. It makes feel a bit positive amid lot of negative experiences folks had in dealing with issues with old home.

Hi,
I have been researching the real estate market for sometime now. Right now I am trying to get into it full time. Initially I am doing both (rental investment and flip). After sometime if I do fine I will know my real niche. I am seeing that some of you folks have created your own company (mostly LLC). I would like to know if I get involved in real esate as full time profession then should I be thinking of forming a company (LLC or something else I do not know). That said what advantage will it provide to me in terms of tax benefits and other potential benefits. I highly appreicate your feedback. Thanks.

Hi,
I have seen a single family house that is in a good neighborhood. Curently this house is bank owned. I am planning to buy this SFH for rental investment. For most part the house looks good with cosmetic upgrade. There is possibility of price appreciation in the future. This is a three bedroom and two bath with full basement house with nice backyard. Currently the asking price is 65000 which I think is still high with the current market condition and the fact that the basement has some degree of mold damage.

Here are my questions for your advise:

1) The mold damage is at the bottom of the basement for about a height of one to one half foot. My realtor told me that a contractor needs to come and cut the lower portion of dry wall and put new dry wall. He sounded the cost of dry wall and mold remediation will be 4000. My question is does this estimate seem close to real value?

2) How does one know the source of mold formation so that after remediation there will not be recurrence of the problem

3) Should I stay away from this kind of property due to mold formation.

What price should this SFH be bought to have cash flow. The average comparable rent is 900 dollars.

Thanks.

Thanks Financeexaminer for your feedback. I appreciate it. Definitely I need to check the foundation first thing.

Thanks Brian and Realtyman for the help and advise. It seems I have to do much more due diligence in oder to figure out if this purchase will be wise.

Thanks Mike for your input. So are you sounding that a old four plex which is as old cannot be generating any money? What kind of maintenance are you talking about?

Thanks Rich, Bryan, Michael, John and Realtyman for the inputs. Sorry for the late response as I was busy checking out a single Family home for purchase for rental.

I think 60k is a good number as 10K will be required to get the fourth rental.

All the furnace have been updated. I am not sure about other mechanical update. Bryan could you tell me what other mechanicals should I consider being updated?

I definitely have to ask for repair money for the whole roof and the carpets and paints.
John this is not located in war zone but looking from the tenants while checking out the rental prpoerties it seems they are all blue collar folks.

Realtyman I am not sure why would one need 75 percent of the gross to maintain a rental property that old. Could you please help me understand this. I just want to avoid buying something that will be a money pit. I appreciate your feedback.

Thanks everybody.

Got it John. Thanks.

Thanks John for the advise on the water damage due to leaking roof. What kind of damage may be there for roof leak? In other words I would like to know what other maintenance I may need to consider due to the roof leak.