All Forum Posts by: George Kaberlein

What a terrific inspiration!  Hope to follow in your footsteps...although its many miles behind!

If they lied (or for that matter omitted something rather than filling in "N/A" if not applicable as instructed) on the application, their application would be denied in our business.  Your defense of the applicant is justified by the property "scaring off great tenants", and they have good credit.  Perhaps a reevaluation of the property is justified, maybe something that could attract great tenants, and not just ones whose credit is good but lack integrity?

I learned about BP through listening to the podcasts, and am always looking for information, so I joined here to learn as much as I can. I've posted a few responses to some topics already, but thought I should introduce my wife and I as well. My wife and I are investors in Springfield MO, having previously done just a little while we lived in Chicago in the late 90's. I still hold a "part-time" job (drive a semi-truck for 2 weeks, then home for a week to help with remodeling), while my wife is the property manager and contractor. We started in MO in 2004 with 2 SFR's at the same time, backed off a bit by selling one 18 months later for a slight profit, and then started moving forward again with acquisitions in 2010 as the market became favorable. We tend to buy the worst on the block (typically vacant), remodel it completely prior to our first tenant moving in, and then hold it as long as it makes financial sense. Believe it or not, my WIFE does most of the remodeling (drywall, mud/tape, ceramic tile, cabinet refinishing), while I do the heavy lifting, demolition, and computer work. It plays to each of our strengths.

      So, if you see me post every now and then, it's because I have some down time from driving, and a good internet signal.  Thanks for all your insights and wisdom!

 Absolutely.  If this is the first analysis, I'd hate to see him get caught with a $5K bill 4 months into the ownership with no reserves to cover it.  That could really take the wind out of his sails!  

As others mentioned, the fact that it's been on the market for nearly a year, at what appears on the surface to be a decent buy, seems to point in the direction of deferred maintenace and a big CapEx bill coming down the line. We just looked at a package of 3 duplexes and a condo that seemed to be a decent cash flow. But, once we accounted for 6 old furnaces and A/C units, 3 roofs at about 35% life remaining (at best), one duplex needing treatment for termites (they were active with a tunnel on the foundation), we decided the return was not worth the risk. Try to determine the numbers you will have for a new roof, HVAC units, and how far down the line might those come up, as those can eat up the $3,720 cash flow you project very quickly. Good luck!

@Joshua Dorkin  Congratulations, and may you enjoy many more years of growth!  I'm a recent member, having enjoyed learning from the podcasts and forums (I'm more of a lurker than a poster), but find that the information provided is always causing me to think about how to improve or grow my business.  Thanks for all you do.