All Forum Posts by: George W.

Combined sewer is having sanitary waste and storm water being served by the same waste piping system. if you have a check valve installed on the sewer main it's only going to stop water from flowing back from the street. So if the city sewer is backed up and full of water, the flap on the check valve will not open and let water from the house side drain. Kinda confusing how you mentioned the sump pump, if your sump pump is draining into the house side of the sewer (behind check valve). Then when the city side is backed up that sump pump water has no where to go besides the lowest fixture. Sump pumps should not be installed on a sewer main. Also see if you're rain leaders go into your house on some old buildings with combined sewers they did. So when the streets backed up and it's raining hard the flap on check valve won't open and all the rain water could still be trying to drain through your lowest fixture. 

I'd try talking to a local insurance agent and accountant first. They'd be able to help you out with the way the insurance and bonding works in your state. In my state they have a home improvement contractors license. Which is for the kind of work you seem to be looking to do.

Without knowing the budget it's difficult to tell you what would excced your rehab budget. As far as arv I believe most people look at a few comparable homes that have sold in the last few months in the area (Similar size, bed, baths and other features) then average the selling cost on the comps per square foot you'd get a price per square foot foot. Multiply your square footage by comp square foot and that would give you a decent idea. 

So I'm in my first deal with my dad going onto the titles and deeds but 3 days of trying to get anything setup with my current lawyer and nothing. I've left messages at office and a few emails which he replied and said hed call later that day and no call either time. It's a shame because he came highly recommend but I need results quickly. Does it sound reasonable for me to switch lawyers now? 

Buying out parents?

So my father has a small rental unit with a large detached garage at one location and a house that needs work where he currently resides. The problem is that the house he lives in now needs a decent amount of work and he cannot afford the work and for him to refinance the work on the loan it would make it too expensive for him to live there. Also he wants to get both of his properties out of his name in case something happens health wise. 

Anyways the rental only produces 950/mo and really only floats the rental mortgage and is used for storing tools in garages. My idea was to see if it's possible to take over both loans and fix main house up then refi and rent out the main house. Doing math on it that way I should be able to acutally make $800/mo cash flow on both units with a new loan. Then refinancing and buying a 3rd house to live in and using the cashflow to offset costs of mortgage and having my father live with me until I flip that one or buy another. The good thing is that the 2 original houses have equity and the third house would have equity too.

House 1

93k owed

Arv: 125k

950/mo rent

Tax$2,700/mo

Insurance $1,200/year

House 2

145k owed

Arv: 205k

Rent $1,600/mo

Taxes: $4,500/year

Insurance: $1,200/year

House 3

200k

Arv: 275k

No rental income

Taxes 7,000/year

Insurance $1500/year

So the total costs would be about 438k. The monthly expenses would be around 3,400/mo

So subtracting the rents on both original houses leaves me with a $800/mo mortgage on the third new home which I'd live in with my father and split all costs making it extremely affordable for both of us. I know that there's other expenses obviously but right now my father is paying $1,400/mo mortgage for the 2 original houses and he is having a hard time floating them both. Also it helps get the properties out of his name. Another good note is that the three properties together all fixed up would be worth over 600k. So I'd have lots of equity to work with in the future to buy other buildings. Has anyone done anything like this before with their parents? I think it would give a major jumpstart to rentals for me even though the only money made is in equity. Also as far as repairs go its what I do for living so I already know the costs of that. Thanks 

A shrader is where the gauges connect outside by the compressor. Sometimes the shrader valve is loose and can be tightened. If the acutal shrader assembly is cracked then the whole compressor would need to be changed most likely. Sometimes also the acutal shrader that threads into the vlave can be changed. If so it requires evacuation of all the old freon, then changing it and testing for leaks. Pulling a vacuum on it then refilling with freon. It's not an easy job and freon is expensive depending on the type probably r22 if it's  old. Did the HVAC guy physically show you a leak with leak detector? Maybe get a 2nd opinion. 

Id stay away from modulars if it is a long term investment. They are built to HUD standards which are subpar to local code. They always seem to be built poorly compared to a acutal building. The nice thing about building would be that youre in charge of the quaility of the building. Modulars are like glorified trailer homes they are built on Assembly lines with cheap material to maximize profit.

@Brieer Doggett if it makes your current expenses a lot cheaper then it definitely makes sense. In the big picture of things you ideally want to minimize risk. 

I myself and still in process of buying my mult-unit. My suggestion from where I stand is to learn as much as possible! If you have audible bigger pockets has a few good books on it. Also as far as debt goes If you can afford the payments now, you should be able to afford it with a positive cashflowing property. personally I try to minimize all personal bad debt. I own all my vehicles, no credit debt and minimize bills by paying in advance etc. But if your investing in something that'll make you money every month go for it! Sometimes you need to spend money to make it other times you can spend someone elses to make it. Find a excellent loan guy. Mine taught me so much about different kinds of loans you can use on property. 

Underneath the tub to where the waste pops through the floor you might be able to sleeve it and roll pan or schluter up to the sleeve. Also caulk around outter base of tub. I'm a plumber and personally don't care to do that setup with a freestanding tub they're always a pain to install. If it were my house knee wall and drop in top all the way.