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All Forum Posts by: Graham Nash

Graham Nash has started 13 posts and replied 38 times.

Post: Would you do this deal?

Graham NashPosted
  • Investor
  • Gray, GA
  • Posts 38
  • Votes 10

Tommy, my 2 cents is that the asking price and your offer should really have nothing to do with each other. Your first offer should probably be an insult, almost a joke. Then go from there. If you get it under contract, all the details can be taken care of in your due diligence phase. Just don't over pay man, you will be done before you start. Good luck. 

@Jack D. Sure. As far as materials go, it was pretty basic. I went with Benjamin Moore on the wall paint. My wife is an interior designer. She has all the chips, so I asked her to pick a couple of colors. It only took 2 coats to cover those colors that were on the wall. There were some spots that took more, but I know a few tricks to cut down on the bleed thru that some paints can create. I think the B Moore paint is worth the extra, because it covers much better than some of the other brands. So it saves time and energy. The ceilings weren't bad,  just went with a generic calling paint. Sprayed one coat, and done. Same with trim. Used around 11G of B Moore paint (with a sprayer). It was around $250 total. 

Flooring: Underlayment in the kitchen and laundry had been replaced with 5/8 plywood fairly recently. That was nice. I just found sheet vinyl that matched what was down in hall and full bath. Purchased and installed it. The underlayment throughout the house was particle board. Which is terrible. That's why I went back with carpet in the bedrooms. It's a lot more forgiving than than other types of flooring. I realize it will probably need to be changed after the first tenant moves out, but so does the particle flooring under it. And I'm fine with doing it after I've recouped some of my investment. The ceramic time was already in LR. Spent a couple of days cleaning it. The flooring cost less than $500 material. I installed. 

Cabinets: These are the original cabinets, for the most part. We cleaned, cleaned, cleaned and painted them. We had to rebuild the 4 drawers, as well as the small cabinet btwn stove and fridge. That took some time, but probably only cost about $75 in labor and material.  Removed the dishwasher because IMO, it's just one more thing that can, and will, go wrong. Replaced the space with an under the counter microwave shelf. Stuck an outlet on the existing elec. supply. Cleaned and painted bathroom cabinets. Used scrap plywood to rebuild closet shelves. 

Replace all the outlets, switches, plates and light fixtures. Purchased all off Amazon.  New oven vent and light. $75

I paid a plumber to to install a pressure reducer valve, fix outside spicket, repair a couple of leaks under cabinets, repair fixtures, install new toilet in 1/2 bath, repair drain line from air handler, $635. 

I spent $2000 in tee removal. 

We installed 3 new hollow core 6 panel doors and hardware. $300

As a teacher, I generally do most of the work mysel in the summer. I paid 1 person $15 and hour ($3600) to do a LOT of this work. I spent ALL day Saturdays, and holidays over there doing all that I could. 

If it could be fixed, it was. If had to be new, it was bought new. 

So far I'm looking at around $13K, that includes dp and closing cost, which was around $3500. 

I realize this post is all over the place. I'd be glad to discuss over the phone. 

@Jack D. Sure. As far as materials go, it was pretty basic. I went with Benjamin Moore on the wall paint. My wife is an interior designer. She has all the chips, so I asked her to pick a couple of colors. It only took 2 coats to cover those colors that were on the wall. There were some spots that took more, but I know a few tricks to cut down on the bleed thru that some paints can create. I think the B Moore paint is worth the extra, because it covers much better than some of the other brands. So it saves time and energy. The ceilings weren't bad,  just went with a generic calling paint. Sprayed one coat, and done. Same with trim. Used around 11G of B Moore paint (with a sprayer). It was around $250 total. 

Flooring: Underlayment in the kitchen and laundry had been replaced with 5/8 plywood fairly recently. That was nice. I just found sheet vinyl that matched what was down in hall and full bath. Purchased and installed it. The underlayment throughout the house was particle board. Which is terrible. That's why I went back with carpet in the bedrooms. It's a lot more forgiving than than other types of flooring. I realize it will probably need to be changed after the first tenant moves out, but so does the particle flooring under it. And I'm fine with doing it after I've recouped some of my investment. The ceramic time was already in LR. Spent a couple of days cleaning it. The flooring cost less than $500 material. I installed. 

Cabinets: These are the original cabinets, for the most part. We cleaned, cleaned, cleaned and painted them. We had to rebuild the 4 drawers, as well as the small cabinet btwn stove and fridge. That took some time, but probably only cost about $75 in labor and material.  Removed the dishwasher because IMO, it's just one more thing that can, and will, go wrong. Replaced the space with an under the counter microwave shelf. Stuck an outlet on the existing elec. supply. Cleaned and painted bathroom cabinets. Used scrap plywood to rebuild closet shelves. 

Replace all the outlets, switches, plates and light fixtures. Purchased all off Amazon.  New oven vent and light. $75

I paid a plumber to to install a pressure reducer valve, fix outside spicket, repair a couple of leaks under cabinets, repair fixtures, install new toilet in 1/2 bath, repair drain line from air handler, $635. 

I spent $2000 in tee removal. 

We installed 3 new hollow core 6 panel doors and hardware. $300

As a teacher, I generally do most of the work mysel in the summer. I paid 1 person $15 and hour ($3600) to do a LOT of this work. I spent ALL day Saturdays, and holidays over there doing all that I could. 

If it could be fixed, it was. If had to be new, it was bought new. 

So far I'm looking at around $13K, that includes dp and closing cost, which was around $3500. 

I realize this post is all over the place. I'd be glad to discuss over the phone. 

@Chris Garrett Thanks for checking out the video. As far as who did what, it was a group effort. It was the first property where I paid someone else to do a lot of the work. It cost me upfront, but hopefully will payoff when it comes to how fast I will have it rented. It was a total of 2 other people and myself. One being a plumber who got it done. 

I just completed the rehab on a 3/1.5 SFR that I purchased through seller financing.

purchase price $23K

10% down, 12 payments- based on a 5% interest rate, and amortized over 20 years. A balloon at the end of the 12 months. 

I invested $12,600 out of pocket. $5,500 of that was dp, closing cost and tree removal. 

I have it listed at $750/per month, but I'm thinking I'll go the section 8 route though. So it might rent for a little less, but it will be guaranteed. 

Attaching a link to video. Let me know what you think.  Thanks for the time. 

https://www.youtube.com/watch?v=3gFR1AfmG0o&featur...

Nina, Honestly, it seemed too complicated to work out well for everyone involved anyway. I'm sure you're better off without that deal. Hearing those numbers...reminds me just how location specific RE is. I could make some nice moves with the dp alone. Good luck!

How did this unfold. or is it still in the works?

Post: Should I walk away?

Graham NashPosted
  • Investor
  • Gray, GA
  • Posts 38
  • Votes 10

Hau,

A $200 monthly cable bill, or frequently dining out, or spending monet on the next new thing  is a "loss." INVESTING a couple hundred bucks a month in a piece of RE, that will more than likely appreciate, is not a loss. .. 

No doubt, cashflow is ideal, but you're basically house hacking. Which isn't a great way to get started. Get your foot in the door (pun intended). If you like it, then maybe try investing in an area that offers CF. Unless you're thinking this is going to be your only property...then I might would rethink things. 

I would think big picture. What does your ideal portfolio look like in a few years?

Lots of CA investors come to GA to invest. I would be happy to invest $200 a month to get in on a sliver of CA RE. 

Is working with someone else on the deal out of the picture? 

GN

Post: Should I walk away?

Graham NashPosted
  • Investor
  • Gray, GA
  • Posts 38
  • Votes 10

In the beginning of the thread it sounds like you almost want to be told to pass, or walk away. 

However, the numbers and responses you've given make it sound like you would like to be told to pull the trigger. What I'm hearing are solid - highly responsible financial habits, very familiar with the local market and aware of the possible downsides. 

Have it inspected, and pull the trigger man... If you find it's not for you, sell it. Even if you take a loss, at least you know. 

Are there any local meet ups/ investors who could ease your mind about the purchase?

You got this,

GN

Post: Seeking cash out refi/ARM advice for SFR package deal

Graham NashPosted
  • Investor
  • Gray, GA
  • Posts 38
  • Votes 10

Greetings, 

I'm looking at purchasing a total of 5-6 SFR, owned by 2 different individuals. My plan is to purchase with cash, refi, and pull out my cash. I know this is possible with one property.

Is it uncommon practice for groups of SFR?

My goal would be to use 1 loan to refi the package of properties. 

I assume this would loan would be an ARM.

Also, would the loan amount be based on appraised value of each individual property, or the income they generate based on current leases?

Thank you,

Graham