All Forum Posts by: Honglian Wu

Hi Anna, How is your STR so far? if you are around let's meetup :)

Hi Emily, Wondering how do you find the STR in Ludlow? I'm also in CT and we ski in Okemo quite often. also looking for potential seasonal rentals / Short term rental there too. love to connect :)

Hi Hunter, Would love to connect to see what you have out there, looking to connect other investors in VT as well, especially south of VT :)  

@Samuel Eddinger thanks Sam. Just filed 1099, the track1099.com works great, very easy to go through, and much cheaper than paying CPA to do it . Thanks a lot for recommendation.

Good evening BPers,

Help/ Advise needed :)
Today we have run across a fire/ smoke damaged property, it's off market, the owner has got paid by insurance company, he is asking ~195K, the ARV ~400K. it's a very nice 2 stories SF a bit over 3000sgft, great location. the fire happened few month ago, it was contained to the basement, but there was a smoke condition throughout the house. it was caused by a lightning though huge tree/ septic pipe to the basement, Septic, HVAC, electric & plumbing in basement, needs to be replaced . there are quite bit of soot on the ceiling of the basement, not sure if the structure is ok or not( it appears not too bad, minor burnt), basement is dry,. the main floor and up stairs looks not too bad, main thing is to clear out the smoke, no water damaged. There a 2 car garage and very nice in-law studio above, they are far away from the source of fire and looks intact. Roofs are 1 yrs new, the exterior looks good. major work will be the interior .

we are not quite sure how much will be the rehab cost, if hire GC/ Fire restoration specialist , My wild guess is it easily cost 200k at least? if not at least 150k. If using the simple rule of 75% of ARV- Rehab cost, it doesn't seem work? I don't think there will lots of flipers interested in this property, as too much work and too expensive, We don't mind to get our hands dirty but we are fairly new, we only purchased one rental properties last year. we like the idea of in-law and it looks great potential for rehab and live as our primary house, renting out the in-law ( could be easily $1000 rental), then hold or sell it couple years late, BRRR it? ;)

Here are some concerns /questions:
1) The total rehab cost, will try to get GC/ Fire restoration specialist, not sure if the owner allows, if not will put in the offer if we do decide to put one. 

2) Clear the smoke on the main floor and 2nd floor, what is the best way to remove the smoke? from surface it looks great, do we have to open each drywall, replace the fiberglass and put a new drywall? 

3) Beside the smoke, there is also concerns about chemical, the fire was through the septic pipes, wires, plumbing in the basement were melt in the hot spot, so it’s really costly to remove all the chemical consider? 

4) Insurance, it will be really hard to get insurance during the rehab process and it cost a lot… maybe i will check with few insurance companies..

5) For resale in the future, needs to disclosure fire damage and it might reduce resale value compare to market value.

6) what is the benefit for seller if offers for seller financing ? as they do get compensated by insurance company, and now the property is free and clear.

Sorry for so many questions, We are trying to analysis see what we can offer and what is best way to approach if we do put offer, Looking forward to hearing from BPers :)

Thanks in advance for any inputs!

Honglian

So glad things works great!!! And you can have rents coming while rehab! Which is awesome! Yeah, I’m kind new to bigger pockets, but have been listening to podcast for few months already:), I have to admit that I addict to it!! We moved to storrs two yrs back, we are always looking for opportunities surrounding areas including Glastonbury :), sooner or late we will move there, househack will be great, we did purchase our first 3 family in mansfield back in Jun, last year, but the progress is very slow. Myself is realtor, investor, wants to slowly build up pofolio.  so glad to find someone local here! Let’s connect, I’m sure I have tons of questions:) Good luck with your ongoing project!!!

@David Morizio just saw it and wanted to say great job!! And nice flowers , btw, how did everything goes so far?

@Tracy Streich

Hi Tracy, 100% she has been really great. We didn’t not mean to push to the limit, it just turns out much longer than we planned, it’s not we are there everyday , instead couple days total in a month. My husband really enjoy and wants hands on it so I let it go, though I do prefer outsourcing. It’s indeed not really save anything. We do have some bumpers in hiring contractors too, it’s all good lessons. We are going to hire more contractors and hopefully can find the right ones.

It’s our first properly so looking back so many things we could do better like get the property fixed in a timely manner, have a better plan etc. hanging there, we will get there eventually.

Thanks a lot.

@Theresa Harris

Thanks! She is working from home, we work one or two days per week , but it’s still hard....