All Forum Posts by: Hunter Woolsey

We live south of Tyler and invest in east Texas. I am in the same boat, my buddies are ready to hear about something else. Would love to connect. 

Hey guys, I just did a full remodel on house and we are at the refinance step of the BRRRR. We also just sold our primary residence and paid off all of our debt except our rentals. The bank suggested waiting on the refi until we purchased our next primary residence. The banker called back today and said due to the debt to income ratio we would only be approved for about half of the purchase price we were looking to buy, that's also not including the refi on the remodel. My wife and I have good W2 jobs and our rentals do well but obviously we show a loss on taxes. Has anyone else dealt with this and is there any way around it? I appreciate the help.

I have a rental property in East Texas, the plumber is over there every couple months cleaning roots out of the cast iron pipes. They have sent a camera down the pipes and its not too bad, maybe only 2 or 3 places. Has anyone ever had to go down this road? If so did you tunnel under the slab and replace the cast iron with PVC, Jack hammer the concrete up and replace the pipe, or send a sleeve or liner down the pipe to coat it? Or possibly another option I'm not aware of. I appreciate any feedback.

Hunter

I PM’d you his number

Johnny Johnson with silver line roofing.

He’s always treated us fair.

We are about 95% through our first short term flip and managing this contractor has been a pain in the butt. To give you a little background I have up to this point rehabbed my rentals by myself and a live in flip with only a little help here and there from contractors so I have a pretty good idea of what it takes to get a rehab done but not so much experience managing people.

 The current flip my partner and  I bought in January and began the rehab process ourselves, due to working a couple other jobs we realized that if we were going to get this done in any reasonable amount of time we were going to have to hire someone. I have used our contractor on small projects in the past never a project this large. We had him over to the house walked him through and told him what we wanted done, he gave us the labor cost with the understanding we were going to buy all the material. He told us day 1 it would take 30 days to complete. We are currently 80 days in.  We started out trying to incentivize the project for him to hopefully improve the quality and help stick to the timeline. We told him if the project was done in a reasonable amount of time and we felt like he did good work we would give him 10% of the profit as well as have another flip waiting on him when he finished. That hasn't done a thing to speed up the process. I drive by the house multiple times most days and he is there about 33% of  the time, every time he needs supplies he will run to the store with no forethought of what he may need after he finishes that task. He has 2 helpers neither of them are skilled we are actually convinced he keeps them there for company and to clean up in the afternoons. As long as he is dragging out the process he could have greeted folks at wal-mart for more money hourly than he is making on this deal.

I know this is the number 1 challenge in flipping. I was sure incentivizing was going to improve the process but I feel like it has done nothing. Is this something ya'll do in your projects? Is it a mistake to incentivize when you find a good contractor? For a busy investor do ya'll find it better to find a GC to manage to project or go get your subs individually? Obviously having a GC wouldn't be as cost effective but is it worth it to eliminate the hassle of lining individual subs up? Thank you in advance .

Hunter

I’m not actually sure if it is tenant or owner occupied. I appreciate all the advice. I tend to think it’s owner occupied just by the mere fact that I drive the street often and never have seen a for rent sign in that yard. Of course all speculation.

We are looking at purchasing a foreclosure in north Texas that is currently occupied. They don’t look like they are working towards moving out. If we do get it purchased is it difficult or expensive to get them to vacate. Is it worth going and knocking on the door to ask what their plans are? Thank you in advance

Hunter

Just to follow up in case anyone ever runs into the same problem. I found the exact floors I needed out of Trinity Flooring Company in Dallas, they were able to order the floors and have them there in a week and at the most reasonable price I have found. Great company to deal with!

I appreciate everyone’s input, the problem with getting two different size planks is we took out a load bearing wall and we are trying to continue where the existing wood flooring left off. I will check into some of those places. Thanks again for the suggestions!