All Forum Posts by: Griffin Doninger

@Melanie Stephens

Novice here - about 4 months in with a two family rehab wrapping up this month and just closed on an off market single family last week.

Five HUGE mistakes...so far...

1. Don’t estimate insurance, get a quote before you make an offer: Shopped around for insurance two days before closing... I was so far into the deal it felt too late to back out, turns out that my lender, and my estimates were off by about 100%...square footage and age of property exponentially increased insurance cost

2. Consider square footage: Purchased a massive (and heavily neglected) 1920s house for value add potential, the square footage (3600) blew rehab budget out of the water, (and I have worked in construction my entire career, so my figures were already fluffed)

3. Hire professionals: I tried using my network of friends who I have worked odd jobs with in the past. The cost of wasted material, labor hours, and quality corrections blew pro contractor costs out of the water... and that doesn’t include my management time.

4. Double your holding cost estimates: because of mistakes 1-3, my holding costs were wayyy beyond what I had projected, play it safe and double, or triple budget for holding costs.

5. Accept your mistakes, and move forward. Even after the headaches and added costs of 1-4, I would do it all again. I will never make those mistakes ever again, and even with the crazy overruns on the front end, I have signed leases that will cash flow 35% higher than my original projection, and our adjusted ROI is heavy in the green

Tenant allowed to have 3 ESA dogs??

Hello Everyone,

I’ve got a tricky situation that I cannot find a straight answer on:

Is a tenant allowed to have 3 ESA dogs?

The tenant is qualified, and has a hearing disability. They claim to have 3 ESA dogs, not entirely related to the disability. Letters from social worker and MD were provided, both with vague language around the service the dogs provide.

CT specific resources use singular (animal, not animals) language.

Let me know what you all think!

Word of mouth from a trusted source is truly the only foolproof method I have found. 

only one property, two family. I do, but I am a month or so out from refinancing

Looking for insight on how to reduce the out of pocket cost for an income property loan. My initial thought was a seller funded down payment, but I am not sure if that is permitted for an income property loan.

Any advice or suggestions is welcome!

Thanks,
Griffin

Hello Friends of BP,

I have recently been given the opportunity to purchase an off market single family property in a prime college rental location for below market value. 

I am still a novice real-estate inventor, just wrapping up my first two family BRRR. Because of this, my wife and I are light on cash reserves, so the timing is not ideal for us - but this is such a great opportunity we cannot imagine passing on it!

The opportunity came from a family friend preparing to list the property on MLS, so we need to move fast. We would appreciate any suggestions for managing the contracts in the absence of realtors. Also any considerations for financing to reduce down payment, and gain a very accurate closing cost estimate.

Thanks in advance!

Griffin & Hayley


 

Hey Gil, looks like its coming through foundation (discolored wall and dark/damp grout joints). This is par for the course in a house of this age, or really any sub grade foundation. Either poor grading is giving the water a path, or hydrostatic pressure from ground moisture is to blame. 

Your footing drains almost definitely don't function any longer, so short of re-trenching ensure foundation you'll need to address topically (re-grade and tune up gutters). Be sure water is exiting down spouts at least 3 feet from foundation, and that the water actually runs away from the house once it exits. 

This will reduce but not eliminate water. You should also look at google 'terrain' map or some town flood zone info and ensure that you will actually be able to re-direct the water to a lower elevation, or buildup grade around building with some compacted top soil. You should budget to add a dehumidifier that is controlled by a humidistat and tie it directly into a waste line. 

@matt dabek and @Russell W. Thank you both for the notes! You've convinced me to move forward with the added panel. I think forced air may be the direction I take down the road.

@Russell W. The boiler is in great condition, its a Buderas and not too old, Definitely hot water. I have read that these old radiators extraordinarily efficient, but the historic gas bill I have seen are insane. I am planning to blow cellulose in all exterior walls, batt the basement ceiling joists and ventilate attic - I expect this will make a major difference in efficiency. 

 I was thinking of doing exactly what you described with keeping the existing heat, but I would have to find a way to zone valve the lower floor so they could be on their own tstat (and I am not sure the radiator piping network is set up for that). Even if I can, I would still need to collect gas bill directly from tenant. 

Hot water wise, I was thinking I could run Pex to all the first floor feeds from a new thankless unit without too much trouble. 

I am a new investor in CT also! @Matt O'Grady, would you please shoot me that info as well?

Hello Good People of BP!

I recently purchased a large two family home in New Britain CT. It is a rather large house (3700+ SF) that appears to have been originally built for a wealthy family in the early 1920s. It was later converted to a duplex (maybe late 90s), but none of the utilities were split at the time of conversion.  I would appreciate any advice on how to approach this scenario. I am considering mini-splits for the 2nd unit, or converting entire place to baseboard heaters. 

Current Setup:
     - Electrical - Single 200A panel: Current plan is to trace all circuits and, provided they can be easily divided I would add a 100AMP sub-panel and a local sub-meter to avoid engaging the power company.... of course this means I would need someone to physically check the meter monthly and I would still have the service in my name...) Should I bite the bullet and request a second electrical meter be installed, then feed a second panel?

     - HVAC - No AC (window units). Heat is all traditional column hot water radiators fed from a single boiler. I don't know much about how they used to pipe these things but I'll have a better idea after basement demo. All radiators are currently functional. I don't think my luck would have these in anything but a single loop. 

- Domestic Hot Water - All fed from a single thankless instant hot water heater

Important Information:

- There is a full basement which will provide good first floor access. After demo down there I will have a better sense of radiator pipe routing. 

- There is a semi-finished 3rd floor which could provide access to 2nd floor ceiling if needed. 

- This is a VERY old house, so there is abundant vertical MEP access (abandoned stairwells), but punched sheet metal lathe plaster makes for challenging wall entry.

- I am a career construction professional, so I have a good understanding of what's involved here. However, I work primarily on the commercial side and would very much appreciate any insight you all have on this specific (historic!) residential scenario. 

- Because of the size, age and owner neglect, the utility bill is in excess of $500/month. I think it should be closer to $150/month per unit. I plan to ventilate roof joists and insulate exterior walls with cellulose, and basement floors with fiberglass.

- I live out of state so permitting and utility company coordination would be a challenge 

Thank you all in advance!