All Forum Posts by: David Healey

@Evan Polaski I like that plan, thanks, Evan.

We bought a wholesale flip deal in Ogden, UT. Upon closing, the owner wanted to push it out a few days, then to the next and then the next. Finally we put our foot down and closed the deal. Then the old owner decided he would sleep in the house for a couple nights until we caught him and told him he needed to go. So, he bought a pull behind camper trailer and parked it in the drive of the home we just bought and has been there for the last 3 days. He keeps saying he’s going to head out to Nevada or some place, but he doesn’t actually leave.

What are my rights as the new home owner? Can I call the police and file trespassing charges? Any and all advise is appreciated.

@Eric X. Thanks for the response Eric, great advice.

I bought a flip property needing light cosmetic work (new flooring, cabinets, counters, appliances, minimal drywall and electric work, smoke smell removing and paint. I budgeted to do some of the work myself (swap out incandescent for updated lighting, all demo and haul away and install the cabinets and counters). I bid the rest out with a contractor which came out to about $13k.  After we got in and were able to see the roof, it looks like it's about 15 years old and has a couple layers of shingles installed. It doesn't look like it's leaking anywhere and the professional inspector showed minimal signs of past leaking in the attic but it was dry and didn't look recent. The lowest bid we've received is for $4,600 for tear off and replace with 3-tab asphalt shingles, $3,275 for another layer on the existing roof, or $2,975 if I strip and haul off the existing layers and replace any damaged sheeting. 

1. If it looks old but seems to be functioning fine would you replace it, or layer over it, or neither?

2. If you would replace it would you layer over it or strip it yourself and resheet where needed and have them replace. 

Thanks for your help!

Hi BP Community,

I am about to have a flip read for paint and need to decide on a wall color. We will be installing new base and case (likely 1/2" x 5.5" block) and will paint the wall color one color and the base and case White with Satin sheen. What wall paint, granite counters, flooring, cabinets and back splash types and colors have you seen fetch the hightest prices on your flips? 

Secondarily, what sizzle features are you adding to boost curb and/or interior appeal? Such items could be steam showers, bluetooth compatable recessed lighting or smart home features. Please also include brands if you don't mind as well. 

@Pat L. Thank you very much for the tips. This is very helpful. How far below the surface of the ground did your trench end up being? You were able to get down as far as you needed to go with a ditch witch? Thanks again!

@Brandon Roof, Good point. We bought it from a wholesaler, so I don't think we can go after the company on this unless you know something I don't. I did ask them about any history of the sewer causing any problems and he said no. The inspection we had on the home said the owner would not allow the inspector to turn on the kitchen sink for testing, so maybe we have something there. We did buy this property at a discounted price, as-is. We knew of some other, more minor problems  we need to fix, but we did sign up for this. Just wondering if anyone has ever replaced their own sewer line before. Thanks all for your responses.

Thanks for the tips, @Wayne Brooks. I'll consult with the city to see if I can legally do it myself. 

I just bought a house without scoping the sewer main. I know, big mistake, I agree. As it turns out, the kitchen sink started having trouble draining. I am going to get a plumber out to clear the blockage and blow out the line. If it needs to be replaced, I don't want to pay the $10k-$15k to get it dug up and replaced and so I'm considering pulling permits, renting a mini-x and digging up and replacing it myself. I have dug up and replaced a water main, but I realize this will require a deeper trench. Has anyone else ever done it? What advice would you offer before I start this adventure?

@McKenna Garcia Congrats on your first post. If you can find the courage to ask a lot of questions, BiggerPockets will be your very best resource for valuable content at no cost to you. 

Fannie Mae is who insures FHA loans in case the borrower defaults on the loan, meaning the Federal Housing Administration (FHA) will cover the loss of the loan lessening the risk for the lender. As the old idiom goes, "He who pays the piper calls the tune." I.e. The FHA backs the loan and pays on the loss if the borrower defaults, so the FHA gets to make the rules (Guidelines). These are what your lender will have to use to make sure each borrower falls within in order to "Qualify" them for the loan.

The FHA changed existing guidelines in January of 2019. The old guideline under, "Rental Income on Retained Primary Residence," it changed from saying: "Rental income may be counted when relocating outside or reasonable commute distance for job OR borrower has 25% equity" but changed to: "Rental income may be counted when relocating and new residence is located at least 100 miles from previous residence AND If no history of rental income since the last tax filing, borrower must have 25% equity."

So, the $2,200/mo. we'd be getting in rents for the unit we are leaving would not be considered in the equation as rents received when qualifying for the new property. We will still get the rents and they will be cash-flow, but it cuts our buying power down fairly substantially. 

We (and you) will still have many ways to boost your buying ability by maintaining a good debt to income (DTI) ratio and structuring your taxes each year to pay more to the Federal Government and the State, but you'll be able to show you earn more and can therefore qualify for more.

Hope this answers your questions. Happy posting and good luck in your future REI's.