All Forum Posts by: James McCormick

@Account Closed "On the other hand if you already have a mortgage and try to switch to an LLC, they can demand full payment as soon as they find out. If you're buying all cash then none of this is a problem i guess."

I have a duplex that I placed in an LLC about a year and half ago, it has a mortgage on it, and I did even think about it. I have not heard a word from them, but I have had the loan for many years now and it is almost paid of (thank you vary much). If they gave me a hard time about it, I could work it out. If it were a new loan (and then placed into an LLC), it may be a different story. Just sharing.

@Johann Jells you said "Hang on, like I said, is this armored cable (type AC), or do you not have any ground at all? In which case the GFCI will not function." This is not correct. It is true that the test button will not work, as there is no grounding path for the current to travel with he test button pushed in, but the breaker will still trip in case of an actual ground fault.

Think of it this way, place an amp meter around both the neutral and hot wires. You will see no current draw (with or without a load) because the hot and neutral (return path) are in balance (zero current). Now grab a hold of the hot wire (down stream from the meter) and allow the current to flow through you, now there is more current flowing through the hot wire then is returning back down the neutral (this is a ground fault), and the meter will show current flow. This flow will trip the breaker.

I have no problem with the rest of your argument, I would never install GFIs throughout a building either, I would use the 2 prong type. I may leave a couple of adapters for the tenants to use. Samantha Klein is correct that this is allowed. I hear that although it is allowed by the NEC, it is not allowed for Section 8, but I do know that for sure. I do no section 8.

@Aaron L. I apologize I did not intend to pee in your Cheerios. I would say that 75% of ARV is certainly close enough, especially with you getting $70,000 and Instant Equity. Also if you are getting $1,000 a month after expenses that's a whole lot different, and it may be even better than I expect from a deal if you are counting mortgage payments. Do not know if you are or not. In any case, we all have to decide what works for us and it sounds like that deal will work well for you.

I hope that works along with the other mortgage that you are trying to get. Good luck.

@Aaron L. You said "I found an off-market deal consisting of 3 duplexes that I might be able to buy for less that 80% of ARV"

Please clarify. Are saying that your purchase price for the three duplexes would be less than 80% of ARV? What about repair costs? I like to see deals that I could acquire for 70% of ARV, after repair costs. In other words, take the AVR times .7, and then subtract the repair costs, and this should be the most that you should pay for the properties. I do like the 70,000 equity. Not so much 1,000 cash flow (I also assume you are talking about actual net income after expenses, including ongoing repairs, management, replacements). I like to see 500.00 a month per unit. I also like single-family houses, so duplexes may show a little less, however not much less, as I would assume you will generally see more turnover in a duplex then a SFR.

Just my thoughts. Remember deals of a lifetime come more often than that, and good deal a whole lot more still. It is easier to find good deal when you are looking for deals. I look for deals all the time, perhaps a little less when I am actually working on one.

Good luck in whatever you choose to do.  

@James Vega Although it sucks to have someone steal your property, I have to say; overall, I think they did you a favor. They removed the carpet and did not even charge you for hauling it off. Now you have a floor that you do not have to worry about someone spilling liquids on. I would not, however, thank them for their services.

@Kara Haney Thank you Kara, I always do three coats. I use Polyurethane min wax super-fast drying gloss # 477929. No sanding between coats, as long as you recoat within 5-8 hours (I believe the period is, check the label, it has been a little while, and I am old, so I do not remember). I plan the first coat so that I am able to fit the second and third coats in the time allowed. I may have to go back at 3 AM, but it goes quick. The floors look good.

yeah the click clock is called Allure Ultra. I prefer the grip strip. Both products are vinyl and don't care about water. We use Allure in the dining rooms of the halfway house that I work at and we have one them out, but it takes two to three years before we wear out the wear layer which is the top, the pretty part that you see. The tiles have still all held together it's just that nowhere layer has worn off. And this is with heavy traffic typically between 100 and 50 and 210 men who obviously don't care about the floor. We have also tried several other types of commercial tile and nothing is held at better than the Allure.

Plus one for Allure (Home depot) That is all that I use, except if the house has hardwood floors that are in pretty good shape. I do my own work, so it cost me less to refinish hardwood floors than to install Allure. I use Oak (one of the colors, looks like wood) and Sedona (looks like tile) for kitchens and baths. I do no carpet. 

@Megan Greathouse that is a real nice looking building. I have not read this whole tread (it is 8 pages long!). I did co-own an 8 family on Jefferson, about a block and a half south of Gravois, so that is in the same hood (or close). That was years ago, and I have become a better manager sense then. We currently have 7 units (one duplex and 6 SFH). I was hoping that you might extend your offer of advise about neighoods in St. Louis to me. Also I was wondering if you are a real estate agent? Anyway, great find on your property.

Thank you all for the replies. There are other people to work with out there. I think there will be more deals once the weather turns and people need to start paying for heat in these buildings, or at least I guess we will see. 

This last Friday I responded to a text that was sent to me buy a wholesaler in town. It described an open house on a piece of property that I was interested in. I checked out the house and decided that it was a deal that would work for me, so I made an offer verbally, and it was accepted by the seller who had an option to buy it. So he was owner by contract. We shook hands and declared the deal to be done. I was to email him a contract later that evening, which I did. Had not heard from him through the weekend.

I called him this morning and he had this whole story about the owner, to which he was supposed to have an option to purchase, and the owner had sold to another investor. I find this difficult to believe because an option to purchase real estate is a binding contract. So I am feeling at this point that he definitely lied to me and possibly used my contract to shop for a better offer.

Now I have no problem being outbid, as this happens, it's just part of the game. I do however have a problem with a deal being made and then him backing out especially in the way that he did it by lying to me. So the question, would you work with this guy in the future, having been through that same experience. I wish not to have dealings with somebody who's going to lie to me and not be dependable. Just my feelings on doing business in general. Does that sound too harsh? Thank you all so much for your input.