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All Forum Posts by: Jared McCullough

Jared McCullough has started 19 posts and replied 118 times.

Post: Obsessing over a deal

Jared McCulloughPosted
  • Posts 122
  • Votes 44

If your goal is to only have one property than yeah it would only make sense to sell the SFH to buy a high yielding MFH and walk away with some cash in your pocket. If your goal is to grow your business then what Joe said is accurate. It is all about what your end goal/objectives are.

Post: First time rental purchase

Jared McCulloughPosted
  • Posts 122
  • Votes 44

Some people are willing to pay a little more to live in a house then a share building such as a duplex or a larger multi. I know I was back when I rented.

Originally posted by @Silvana Lavado:

Hi everyone, I also just moved to the Monaca area for the Shell project. @Jeffrey Simone, if you're still there let me know! 

@Jeanni Prescan if there's a Beaver County investor meeting, I would love to participate! If not, what are other investing meetups you attend, maybe I can join those. 

Thank you

 Silvana,

There seems to be a group for REI in Beaver County (i.e. See below). I have not been yet but have been meaning to attend. I work right down the road at Nova Chemicals :D

I have a few rentals back in Indiana County but I am looking to expand into Beaver County now as well so looking forward to seeing where this thread goes.

http://www.acrebeaver.org/

I personally would not bother at that price point. For $500/month rent I would personally not be willing to spend over $30k closed. This being said obviously the market I am in allows that my guess would be is the market you are interested in does not.

For $50k I would be expecting closer to $750 to $850/month at $500 I would not feel like I am getting enough return on my dollar. 

First thing rip the dang drywall down. Not sure why everyone needs to feel like they "need" a finished basements. Drywall is such an eyesore when it comes to mold. Plenty of homes in the Northeast have "wet" basements that if they had drywall would be moldy to. Not saying it is a great thing to have water in your basement but it is not uncommon by any means. Heck my parents house have a spring that was intentionally routed through the basement. 

This being said you have a water ingress problem that needs addressed before I would start doing any remedial repairs. Fix the problem, clean the mold, then fix the studs other stuff you are concerned about. 

As far as health concerns with mold there is plenty of information that can be had with a standard google search. 

Originally posted by @Justin Lukus:

I have a property that needs some work in Monroeville. The property is currently listed with a realtor (Coldwell Banker). I decided to drop the price and I am asking $89.9K for the property. The last tenant was a rent to own and that situation didn't work out well for me. I was receiving $1050/month for the property while renting. 

Somewhat interested. What is the address?

Originally posted by @David Grant:

@Steve Hall
I do recognize these are business expenses, forgive me for my casual use of words.

@Charles Carillo

Thank you for your reply, I agree on everything you said. However, it seems like the commercial loan lending terms we are getting are giving us an interest rate that is very high and erodes into our returns greatly. Are we just not looking at the right places? Commercial lenders are giving us rates of about 10% versus the 5-7% we can get from a regional lender.

Depends on what kind of loan you are looking to get. I have worked through (2) banks to determine loans and was easily able to come up with commercial refinance terms between 5.5 and 6% for a multi-member LLC (i.e. we have 3 of us as well). If you are looking for a standard business loan then yes it will be higher but that is more the nature of the loan type not necessarily because your an LLC. This being said if you were to do this on a personal mortgage style format I hear some are getting rates in the 4% range. For the loans I am taking it is sort of a wash but if you were talking out substantially larger loans I could see where the 1% difference may be worth chasing.

Post: Electric vs Gas Heat!

Jared McCulloughPosted
  • Posts 122
  • Votes 44
Originally posted by @Pat L.:
Originally posted by @Jared McCullough:
Originally posted by @Pat L.:

We've inherited a couple with electric heat & I upgraded the baseboard units or replaced them with recessed wall units with blowers.  BUT it is expensive compared to forced air NG. Then again a lot of tenants get HEAP so they get assistance for their utility bills & haven't complained. In fact in one 2 bedroom unit the tenant tells me with window a/c's his electric runs higher than their heat/month. 

 Pat sorry for the delayed response on this but was hoping to gain some insight from you. I noted you suggested you upgraded to a 100 AMP. Did you mean you added an additional hundred AMP service or you upgraded your 100 AMP to a 200 AMP or am I interpreting this wrong.

Also would you recommend baseboard or the recessed wall heaters (i.e. I think the wall units look cleaner but were not sure if they were as effective as the baseboard).

On top of that was wondering if you would recommend the hydronic baseboard units or the standard convection heaters.

I also noted your in NY are you using these to solely heat a house or as supplemental and do you feel they could adequately provide heat to a house in the NE during the dead of winter.

 No the panel was upgraded from an old 60amp to 100amp with all new wiring. The wall units have blowers & disperse the heat more effectively than convection baseboards. We do have a hydronic system in one multi but that is on an old NG boiler. They are far more effective than electric baseboards. I have also put in the hydronic kick-space blower units that the tenants say are awesome. Those I pick up in the summer when they're sold off for 1/2 price. 

 I was under the impression that the hydronic systems were basically like the convection with an electric heating unit but had a closed loop water or oil system inside to retain the heat. It sounds like the system you are speaking of is more like a radiant heat boiler setup?

I think for now beyond the question above I am more interested in the standard electric baseboard or wall mount systems you speak off.  I have a few questions if you don't mind?

Did you go with something like Cadet offers? 

It sounds as though you would recommend going with the wall mount over the baseboard?

Did you oversize the rooms a little or what method did you determine which size unit to install?

Do the blowers for the wall units make substantial noise?

Did you put two units in any room just to get better distribution? If so or if not did you see any negatives against using two smaller units in a room versus just one larger?

Did you buy ones with the integrated thermostat or did you tie a few into a central thermostat? Did you have any rhyme or reason in how you setup the thermostat scheme? (i.e. I have been looking in Smart/Wifi thermostats)

How many units did you install for that $1500 range and are you running any supplimental heat in the house you said you did in this?

How did you fit all these onto a 100 AMP Panel along with all your other house needs (lighting, fridge, etc..)

Appreciate any response you give as I am desperately trying to piece this together as an option over forced air as it seems to better suit this small house.

Jared

Post: Electric vs Gas Heat!

Jared McCulloughPosted
  • Posts 122
  • Votes 44
Originally posted by @Erik W.:

@Jared McCullough - 3,500 watts in living room and in a large back area.  Smaller rooms can go 1,500 or 2,000.  As you noted, different areas of the country have different heating requirements based on the severity of the cold season.   You'd want to have someone do a btu/square feet estimate given the characteristics of your property and climate zone.

I first got the idea when staying in a Marriott timeshare in Dillon, CO that was heated exclusively with electric baseboard.  Stayed very cozy the whole time, even though I was less than a mile away from a ski resort.  Missouri weather is generally much milder.

The units I outfit this way are typically between 700-900 sq ft, so pretty small.  If I do an insulation upgrade, they stay nice and toasty for a reasonable monthly utility cost, and I've never had any maintenance calls on any of them.  Been doing this since 2006.

The main issue I hear from folks is when they turn the electric off or way down during the day, it doesn't respond fast enough when you get home and crank it back up.  Easy to solve: either add a programmable t-stat, or you can add a vent-less gas wall heater to bring the temp up quickly and cheaply, then let the electric take over on "cruise control".  In my town, vent-less heaters are allowed by code as long as you have a permanent source of heat: electric baseboard qualifies.  But once they are installed, it's up to the tenant to decide which source they want to use.  I can't hold their hand, so if they choose to use the ventless heater that's up to them.  The oxygen sensor will shut it down if the air gets too thin for safety and then the electric will kick on.

 Unfortunately gas is not an option as there is no gas line and that is why I am trying to come up with solutions outside of a FA Gas Furnace and the cost to run a line is close to $1500. I was reading something similar to what you are suggesting is that they take a little to heat up.

Do you run the ones with individual thermostats and if so do you find complaints about tenants having to set each room or vice versa do you set a each level on a seperate thermostat.

The unit I am looking at is about 900 sq ft as well and I am hoping to heat it exclusively with electric but want to be sure ahead of time that if I spend the money it will work. The whole house is gutted and being completely re insulated. Would you recommend over insulating. What kind of RValue are you putting in the side walls. 

Little more detail on the type of foundation and around the cost that was quoted. I am not an expert but have had a little bit of unfortunate experience.