All Forum Posts by: Hank Parater

ARV: 210-220

To Flip: Needs new kitchen, bathroom updates, carpet and paint

To Rent: Carpet maybe?? Otherwise ready to go!

Hi @Alexander Toledo, I am a contractor in frederick. PM me if you'd like to discuss further.

ARV $220,000. Comps to support. Needs kitchen and bath updates, carpet and paint. Estimated 30k rehab. Easy, fast, flip!

I have an opportunity to buy some commercially zoned land -actually the legal definition is called "Village center commercial". You can basically build small commercial buildings (ie: ice cream shop, coffee shop, etc- no high rise) But you can also build a duplex, triplex, or just a single family. The location is in a decent town, and the lot is flat and pretty much ready to be developed. It's about an acre, and priced at about 50k. Has city sewage/ well already drilled for water supply.

I was thinking either build a duplex or just a single family, and I think the sf would sell for more. Maybe just a 1500-2000 s/f house. Basic starter home- would comp for $250 or so.

I am a contractor, so I can hire a builder to do foundation, and then me and my guys go in and frame and finish it. Thinking it might cost me 100k or so.

50k land, 100k build-- sell @ 250k - 100k profit- 8-12 months

Anyone have any experience with this??

Hello @Robert Crozier, good luck! I'm in the frederick market- so feel free to contact me for anything. I'm also a contractor- working on my 3rd flip. 

Thanks for your responses. To clarify, the rent being paid by tenats is $600p/m, $500 p/m.

The market rents for the area are $850. 

When I purchased, there were no leases in place. The previous owner just had verbals. But they paid, on time and consistently. 

I think I will take @James Wise advise and wait until spring. The current rents offset my mortgage anyways. Since I will be living next to them, I want things to be smooth. By then I will have done maintenance and improvements at which time I will raise rents by $100. Then, do 6 month lease agreements that gradually raise $50 p/m every 6. That way they will know what's coming and to be prepared. 

Just bought my first triplex!

Currently the renters are paying $300 under market, and they are on month to month verbal agreements- no signed lease. The renters have been there for 3 years, and keep they're places very tidy. No kids, no pets. One lady even pays rent a week ahead. 

So, I have a dilemma: I'd like to raise rents, but don't want them packing up and leaving right away, especially going into winter. Not trying to have vacant property through winter. Also, I will be living in one unit, so I have to see and interact with them probably daily. So, my thinking is this: wait until march then hike it up- if they leave, then oh well, I will have better luck finding tenants in spring. Or maybe, just hike it $100 starting in november, and have them sign a 6 mo lease- that way when I raise another 200 in 6 months its not such a shock.  But knowing that I'm losing basically $600 per month burns at me. What do you think BP Nation??

Thanks everyone. Much appreciated.

Thanks @ Micheal Leffholz and @Gavin Welch.

Liberty mutual is working out.

I am currently purchasing a triplex, in which I will live in one of the units for a year or so. The other two are and will remain rented. Financing is through FHA. I am having trouble getting insurance for the property. I've been denied by 2 companies -progressive and a local company. I have been written a quote from Scottsdale insurance of $542 per month!

I currently have another local company (the same company that insured the property for the sellers) writing me a quote, but it's been 4 days and they are still waiting on the "underwriters approval".??

This house was built in 1880. But all the electric, plumbing and hvac has been updated. All on heat pump and modern duct a/c. The roof is old, not sure how old, but it is a metal roof-typically good for 50-70 years. Structurally, everything else is pretty sound. There are chimneys but none are in use. All sealed off. 

Not sure what the problem is or more importantly what the solution is?? 

Any ideas or can anyone recommend a insurance company that may cover older homes?

Thanks.

Ps: Frederick county, MD