All Forum Posts by: Kyle Hipp

The question is posed in such a way that it makes it sound like buying is the most cost effective and smartest path. While many points are accurate, I would say that it is not always the best for people to buy. The average family moves every 7 years, although that has extended out a bit over the last couple years. The average family also takes a 30 year note which basically pays down the mortgage enough to cover the closing costs in 7 years. Once you start adding up replacing the water heater, furnace , roof, Windows, paint (6), flooring (2) kitchen and bathroom remodeling, ect ect over 30 years. The costs do not come out that much better. If a personal were to rent and pop those remodel expenses into the S&P500 over the same time, chances are the renter comes out ahead :)

labor will run about 1 to 2 times materials as a general guide. I do the vast majority of my own improvements and repairs. I have saved tens of thousands over the years between siding and decks, and garages and additions along with basic repaints and handyman work. I would say a good $25,000 per year for me in savings.

I purchased my first duplex at 21. What I will say is that you have more time than you think you do. I work about 50 hours a week at my day job on shift work. I manage 24 units across 10 properties and run a small construction business on the side. I have flipped an entire house with a little help for plumbing and electrical in 31 days while being on 12 hour shifts for 3 weeks at work. The amount of projects you can get done and amount you can take on gets a lot easier as you move forward. When I first started I would do 1 major project a year like siding or Windows or driveway. This was largely due to financial constraints but also time and ability. This last summer I built a new garage, resided and insulated my 6 unit property and stripped siding, reinstalled new and tore down a double decker front porch and rebuilt on a duplex. These were 3 major projects all while doing 2 big deck projects for a local builder and a number of other remodels for the construction business. Still putting in my 50 hours a week at work and managing my rental properties. I could probably not have handled all this at 23 buy it was the culmination of 10 years of experience that made it all possible. 

So my point is you are doing good, asking good questions but you need experience and that comes with action. If you take action now, hopefully you will look back 10 years down the road and see how little $10,000 is and the need to build your income. Lastly if you have the determination, you will find the time. If I could get down to a 60 hour workweek all over that would be incredible. I am planning to dropping my day job in the next year or so that will help a ton. Luckily for me, while I do not enjoy my day job, it pays great and is pretty easy on most days. I love what I do on the construction and landlord ingredients side so 20 hour days there are no problem :)

I do not hire a tech to come and clean or service my furnaces or C/A units. I change the furnace filters regularly myself and will also clean them periodically myself as well. I do not see any evidence that spending  $100+ a year on these cleanings will save me any money. I manage 24 units and have a combined total of 18 furnaces and C/A units. A new furnace install costs me $1,900 so at $100 a year per unit in servicing, I can replace a furnace each year instead. Has served me well over the last decade. Most of the issues I have had with furnaces are largely operator error and troubleshooting is quite easy 

If the recessed lights are not rated for insulation contact, it doesn't matter what kind of insulation you use. You'll need to buy covers either way. 

Batts are difficult to install correctly to achieve the best results.  Blown in is cheaper for materials and with a purchase of 20 bags the rental of the blower machine is free. You do need to have another person to feed the hopper. 

This seems to be your first property. My recommendation is to actually learn these things now. The 20 minutes it takes to take a look at the furnace, vacuum it out and do. Couple checks will definitely be worth the $200+ the company will charge. The best way in my opinion to develop great systems is to develop the knowledge up front. 

Depending on the condition of the older furnace, they are 60-80% efficient. New models I install are roughly 93% efficient. As far as servicing goes. Changing the filter is the best choice hands down. I never have someone come service or clean. I can do that myself, doing a check and wiping out with a little vacuuming as well...

she is essentially your roommate in. House you happen to own, correct? If so different rules apply

You did look at the house before you put an offer in and saw the furnace. As long as it is in working order, I do not see what grounds you have to get a replacement. It also sounds like you are already looking to counter back if the seller says no. Seems like a lot of Hassle. You should be able to get a small HVAC company to install a quality product for a lot less than $7,000+. Just have cash and save a ton. All of the places that I have seen that offer financing, even 0%, also charge at least $1,000 more than necessary per unit.... 

lastly, I like buying properties with old working furnaces. They are quite simple and tend to last a long time. Worst case I spend $1,900 and have it replaced. The best part then is the energy efficient savings. So when you ask for him to pay for new equiptment are you also going to adjust the current price up for that value and the energy efficiency savings? Just some food for thought. Love to hear how it plays out :)