All Forum Posts by: Jake Andronico

Hi all!

I am an agent in the Indianapolis area, and work with a lot of OOS investors for STRs, MTRs, and LTRs. I have a handful of clients that are interested in seller financing, which I have learned a ton about! One of my clients looks at on market properties, and sends me a cash offer and a SF offer for each property they're interested in. I have has such a heard time pitching the SF, and I have never had anyone interested. How do I pitch SF well, and make it sound so much more worthwhile than a lowball cash offer? I am pitching these to other agents. 

If anyone has ideas, I would love to hear them! I just want to work as hard and I can for my clients, and it doesn't seem like I'm doing their SF offers justice. TIA!   

My goal is to buy a house hack when I move next year back to my hometown after finishing dental school. I want to start my real estate investing journey by house hacking.

I did two calculations for a 4-plex and a duplex in the city I want to move into. These calculations include gross rent as if I were collecting rent from myself as a renter. Both purchase prices assume I can get the seller down 5% as well. Ideally, I'd like to see cash flow here if I were buying these properties as a standard rental as simulated in these calculations. 

A few things to consider. If we were to rent, we'd probably be paying about $2100 a month for a 3/2 SFH. We'd be paying about $3,000 to own a 3/2 SFH.

For the Duplex here, I estimate we'd be paying about $1700 a month after we paid our half of the 3000 gross rent and paid for the negative cash flow out of pocket each month.

For the 4-plex, we'd be paying about $3000 in total each month after covering negative cash flow. But, the units are a bit nicer in a bit better neighborhood.

With our income, we are not worried about being able to cover the expenses of some negative cash flow but we want to optimize our planning. The market seems very expensive right now and we are unsure if we will be able to find a deal that works out and don't want to get myself into a bad situation. 

Aloha,

Proper prep is key to a good result, essentially it is autobody work with Bondo and an epoxy based paint. Results usually LOOK fantastic. As long as you recognize it is a short term solution, that can and will be affected by your Tenants. Be sure to advise them, in writing, in the Rental Agreement, to NOT use abrasive cleaners or scouring pads. Soft soap and cloths only. If the surface was not properly prepped and thoroughly cleaned, within a year you will have large chunks of paint peeling out of the tub. If abrasives ARE used, the surface will get scratched and deteriorate fairly quickly. I usually advise Clients this is a three to five year solution, best case. In part this will also depend on the underlying condition of the surround walls. If they were deteriorating, with moisture getting through the grout lines (if tile walls), they will continue to deteriorate behind the shiny new paint.

A potentially bigger issue is the overall age of the tub/surround/piping. Usually by the time you are considering re-glazing, the pipes are at end of life, and often the tub itself is starting to blister from corrosion. The only way to change the waste and overflow, as well as supply lines that are at end of life, is to remove the surround. It is foolish to go to all that effort and NOT change the tub also, as you will need to tear it all out to do so once leaks start showing up in a space below or next to the tub.

Re-glazing is usually a better option than a plastic or fiberglass kit, even though these kits can last a little longer. The bigger problem with those arises when they flex during normal use from poor support, resulting in cracks that will leak. They also tend to "yellow" in five to seven years and are also easily damaged by abrasive cleaners.

A properly installed, quality tub and tile job will typically last 25 years and more.

We have used the professionally applied product on several projects doing tubs, surrounds and even 1970's countertops in the bathrooms that came out looking like marble.  Two projects were a few years ago and we actually followed up with the buyers and they said the finish was looking as good as when they bought it.  I think the trick is to make sure the person you use preps the surface completely and then uses a quality product to finish it all.  I am not sure how the guy we used was able to breath but it needed a fan to get the fumes out.  I was amazed and even the agents that saw the final product were impressed.  It came with a 5-year warranty and the guy said he had not been called back to redo one yet.  It did take a few days to finish curing but the end result was worth it.  DO your research and find a quality installer . . . the do it yourself kits will not hold up as well.

Looking at the original tiles, they seem good enough to regrout with anti-mold, anti-mildew, antimicrobial grout.

Did you consider that...then original finish would have been maintained.

Good Luck!