All Forum Posts by: Greg Baker

For my first rental property purchased I utilized a real estate broker who is also an investor. His connections to an attorney, mortgage broker, insurance broker, engineering inspection company, property management, etc. provided me with an instant team that already all communicate on a regular basis and know each other by first name. It takes a lot of your new guy plate when the players already communicate with each other.

27 windows that need to be pulled, scraped, and painted to pass a lead based paint test for a new CofO. Live, learn, then buy a house that already has vinyl windows.

Dave Ramsey that debt! We recently purchased our first buy and hold, a very conservative 48k home using traditional 20% down conventional financing. What I expected to be smooth sailing ended up turning into basic rehab costing more than anticipated, the certificate of occupancy requiring work that cost an extra $2,000, and holding vacant for about 2 months longer than expected until we have a great tenant moving in with a 2 year lease on May 1. So, while I don't regret the purchase as I did 3 weeks ago, this could have had a hugely negative long term impact on our finances and marriage if we did not have an extra $5,000 to dedicate. I know others will tout a roi % being higher than the interest rates on student loans, cars, whatever, but that does not truly display the up front costs, the mental stress, or the guaranteed "roi" of paying off a student loan at 4% as compared to an investment with so many potential external factors.

Evening everyone,

Currently, my family is in Rochester, NY, but by the end of August we plan to relocate to Canandaigua. I was wondering if anyone here invests in Canandaigua and if so, if I can pick your brain a bit. We are looking at some potential "house hacking" situations with consideration of utilizing a FHA 203k loan to rehab. I'd love some feedback on both ARVs and a quality contractor to work with if there is anyone out there!

Thanks,

Greg

Michael - I may have missed it in your post but did you include taxes? It sounds like you're not worried about vacancy but I'd calculate in what your property manager charges for lease ups above and beyond the normal monthly %. Additionally consideration for clean up when vacant. Also, are you planning to put money aside monthly for maintenance and cap ex? If a roof lasts 20 years, you have 6 properties you may have to replace one every 3-4 years? Not sure if my math is correct there, I've never dealt with multiple properties like this. Sounds like a unique opportunity, just make sure you have money to cover the first year or few unexpected and up front costs. It could turn ugly fast if not managed correctly. Curious, did the previous owner use a management company? Are you going to use the same one he did? (If he did). Good luck!

@Steve Santacroce - Thank you for the advice, definitely a lot of "learning the hard way" lessons on this first purchase.  Hopefully this is the last one for awhile!  Out of curiosity, who do you use for windows?  A friend of mine recommended Wonder Windows, I called them this afternoon out of sheer curiosity for a quote and left a voice mail.

Recently purchased a SFH in Rochester, NY to convert into a rental. We applied for the certificate of occupancy and got flagged in nearly every single room for the WINDOW SILL/SASH with the following code violation:

The interior was found to contain protective covered surfaces in a state of deterioration in excess of more than ten percent of the identified building component with a small surface area.  In order to have this violation removed, you must submit a clearance certificate from a Certified Lead Inspector or Risk Assessor, certifying that the unit is lead safe, as per section 90-56 of the City Code, and complete and return the attached Lead Ordinance Compliance Affidavit.

Now the kicker, it also says, "You or your agent are required to complete a certified lead safe work practice training course prior to conducting any lead paint reduction activity."  Furthermore, "Entities conducting clearance inspections must be independent from those performing hazard reduction or maintenance activities."  We called regarding a class to certify lead safe work practices and they have one in late April but it's full.

What are my options here?  When I called the inspector she said I can simply replace all of the windows in the house!!  Ya, right...Can I really NOT scrape and re-paint the windows?  For Rochester based investors, who have you used to scape/re-paint and then who have you used for certification purposes?

Thanks....

Be able to view images Not have it crash on random posts or random profiles (I'm sure it's not random) Option to return to last topic/post upon re-opening if it does crash Be able to turn the darn phone sideways for landscape Ability to access messages

How much was the earnest money?

Chris, Thank you for sharing all the updates. I admire your knowledge and really respect how you included the previous investor in your financial structure to support him through his best intentioned losses.