All Forum Posts by: Greg Henderson

Quote from @Jim K.:

Quote from @Greg Henderson:

Quote from @Jim K.:

Quote from @Greg Henderson:

Watch a 5 minute video about replacing outlets and switches. They're less than a dollar each and make a HUGE difference. If they don't have a ground wire, you can add one for very cheap.

I would love to know what you're trying to say here. How do you add a working ground wire to an ungrounded outlet "very cheap"? 

Jim, sorry if I didn't fully explain. It depends on the age of the house, certainly. A great number of houses in my market the ground is connected to the box but not the receptacle. As long as the metal box is grounded and the ground is bonded, a pigtail or a grounding clip is sufficient. If you're replacing the receptacle, you should ground it. 

In my market, where I just bought a multifamily dating from 1925-1935 that was originally wired with knob-and-tube, almost none of the junction, switch, or outlet boxes are grounded. There are, I would wager to guess, a lot more markets just like mine in the Rust Belt.

What you've got going on in your market is slightly outdated wiring, and yes, it can be corrected in a pinch for pennies. What I've got in mine is extremely expensive to fix. My concern is for people reading this thread who are in my market and will not understand why "grounding" would justifiably cost so much more as a line item in my market versus yours.

But then again, the last person who rewired my multifamily couldn't even be bothered to use stress-relief cable clamps in one of the main junction boxes in the basement. Not to mention the Eaton breakers they jammed in Murray boxes and grounds that are not actually grounded anywhere. Maybe every house in the Burgh should come with a warning label.

Yea a lot of the property is late 60s early 70s. Knob and tube is rare here. I own one property built in 1927 and another 1921 that still has it in the attic but it’s not hot. That electrician that wired your box must have moved here… 10/2 for a stove connected to a 50 amp breaker, double tapped breakers, etc. 

Quote from @Jim K.:

Quote from @Greg Henderson:

Watch a 5 minute video about replacing outlets and switches. They're less than a dollar each and make a HUGE difference. If they don't have a ground wire, you can add one for very cheap.

I would love to know what you're trying to say here. How do you add a working ground wire to an ungrounded outlet "very cheap"? 

Jim, sorry if I didn't fully explain. It depends on the age of the house, certainly. A great number of houses in my market the ground is connected to the box but not the receptacle. As long as the metal box is grounded and the ground is bonded, a pigtail or a grounding clip is sufficient. If you're replacing the receptacle, you should ground it. 

We use an old 3D walkthrough and pictures to market the unit. My market is hot enough that I have a stack of applicants ready before the move out date without showing it. We just say no to requests to view until its vacated and cleaned. Its a great feeling to have one move out and one move in the same day.

The biggest bang for my buck has always been:

Paint the entire unit . You wouldn't think the ceilings need paint until you paint it and what a difference it makes! I use:

https://www.homedepot.com/p/BE... for the walls

https://www.homedepot.com/p/BE... for the trim and cabinets

https://www.homedepot.com/p/BE... ceilings

Replace countertops

https://www.lowes.com/pd/Stret... 

Backsplash

https://www.lowes.com/pd/Anato...

https://www.lowes.com/pd/Anato...

Watch a 5 minute video about replacing outlets and switches. They're less than a dollar each and make a HUGE difference. If they don't have a ground wire, you can add one for very cheap.

Replace doot knobs

https://www.amazon.com/Bedroom...

https://www.amazon.com/Probric...

Replace cabinet hardware after paint

https://www.99centknobs.com/

Replace ceiling fans and lights. Very easy and cheap. 

Replace bathroom vanity

https://www.lowes.com/pd/Proje...

Replace the kitchen and bathroom sink fixtures

Flooring is expensive and will eat up a lot of your budget. You will need tools to undercut door jambs, possibly trim the bottom of doors if the elevation is raised, install 1/4 round or shoe molding, caulk, underlayment if its not attached, floor leveling compound if you have any low spots, grinder if you have high.. its not just dropping down cheap flooring. If its not done right, it will look terrible, break apart, and need to be replaced in a year. Consider tile. The material price is very low since its out of style, but its clean and will last for decades in a bathroom and kitchen. You can watch some youtube videos, buy a leveling system from amazon, and do a great job for $1 a foot.

No one in my market has ever requested a garbage disposal and I don't think anyone would ever pay more money for one. 

Lastly, I know a lot of landlords remove dishwashers. They can break or flood, but that's market dependent. I install them in my units.

The most important piece of advice is don't invest in low income areas of Jackson. They will leave in the night and take the hot water heater with them. Second, you cant buy property, without a cosigner, until you're 21 in Mississippi unless you're emancipated. Maybe that should have been number one... Either way.

"Give me six hours to chop down a tree and I will spend the first four sharpening the ax."

Keep sharpening your ax. Read. Listen. Learn. Grow. Be Patient.

PriorityOne and BankFirst are 2 great local banks in southern MS. Contact both and talk to a loan officer to get available options. I'd steer away from the huge lenders. Their closing costs are very high from my experience.

This isn't legal advice. Talk to a lawyer. My understanding is the ESA isn't protected by the ADA because it isn't job specific like a seeing eye dog. Its covered by the FHA. Is it a SFH? How many properties do you own? Are you managing yourself? If its SFH, under 3, and you self manage or if its 1-4 units and you occupy one unit, you are exempt from 42 3604 (minus section C) in Discrimination in the sale or rental of housing and other prohibited practices. I'd tell them to cure the lease or kick rocks.

(b)Exemptions

Nothing in section 3604 of this title (other than subsection (c)) shall apply to—

(1)any single-family house sold or rented by an owner: Provided, That such private individual owner does not own more than three such single-family houses at any one time: Provided further, That in the case of the sale of any such single-family house by a private individual owner not residing in such house at the time of such sale or who was not the most recent resident of such house prior to such sale, the exemption granted by this subsection shall apply only with respect to one such sale within any twenty-four month period: Provided further, That such bona fide private individual owner does not own any interest in, nor is there owned or reserved on his behalf, under any express or voluntary agreement, title to or any right to all or a portion of the proceeds from the sale or rental of, more than three such single-family houses at any one time: Provided further, That after December 31, 1969, the sale or rental of any such single-family house shall be excepted from the application of this subchapter only if such house is sold or rented (A) without the use in any manner of the sales or rental facilities or the sales or rental services of any real estate broker, agent, or salesman, or of such facilities or services of any person in the business of selling or renting dwellings, or of any employee or agent of any such broker, agent, salesman, or person and (B) without the publication, posting or mailing, after notice, of any advertisement or written notice in violation of section 3604(c) of this title; but nothing in this proviso shall prohibit the use of attorneys, escrow agents, abstractors, title companies, and other such professional assistance as necessary to perfect or transfer the title, or

(2)rooms or units in dwellings containing living quarters occupied or intended to be occupied by no more than four families living independently of each other, if the owner actually maintains and occupies one of such living quarters as his residence.

https://www.law.cornell.edu/us...

Its a very good price. Price here is $2-$3 a foot

I bring the property and scope of work to my local bank, portfolio loan. Its appraised subject-to repairs and AS-IS. My bank will fund 75% of the AS-IS appraisal for purchase plus a line of credit up to 75% of the ARV. If the property is under contract for 75k and appraised as-is for 100k, I close for $0. If the ARV is 200k, I get a LOC for 75k. Its not that smooth every time, but it does happen. You can also add into the contract that the seller pays X for closing costs to potentially bring nothing or get a check at closing.

"Is it possible to acquire a 10+unit property (cash flowing) with $100k savings, a six figure salaried job, good credit but no assets nor cosigner?"

Very unlikely. You need a high net worth or a lot more cash than 100k and experience to get financing by yourself. The question I'd ask is why would you want to start like that? The reason so many start small is to learn what you can't from a podcast or book and then build a plan. If you started rich or with rich friends, then yeah go for it! If not, you're one bad decision from a six figure salaried job, terrible credit, and $0 in savings. If you just want to slam 100k down and hop aboard the good times express, someone is going to rob you.

Those that have made it always preach passive appreciation and that is the ultimate goal, but its slow. If you start with 100k, you want that to double in a year or two. Not double in 6-10 years. If you start with 5 million, doubling in 6-10 years with no effort is the ticket. I'm pushing forced appreciation because I started with far less than 100k. I value add +25% to each property I purchase. Look for ways to amplify your investment with more time and effort in the deal vs looking for a lottery ticket to turn 100k into retirement. Start with one SFH that needs work. You will be rewarded with experience and higher CoC returns.

or its always possible I'm an idiot and finding a golden ticket is where your effort should go.