All Forum Posts by: Jeff B.

Maybe this is just indicitive of the whole foreclosure mess, but I'm not sure how this happens. It seems that the property was foreclosed, then sold twice, ending up belonging to a Limited Partnership that does not have a real address??

http://www.kypost.com/dpps/news/tri-state_news/Foreclosure-protesters-fill-the-lobby-of-US-Bank-downtown_6772469

What happens to a property such as this? The county eventually takes possession and sells it at the property auction?? If it has been 4 years, how long does it take? I don't care about the property, just interested in the process....

Greg, I kind of see your point. However, for me, I do the rentals a little different. I use the 50k as my cash in on several rentals and leverage my way into several rentals. I buy foreclosures for 60k or so using a rehab loan, put down 20% plus rehab costs (which I get back at the end of the rehab period). I end up having several homes with very good cash flow with rents in the $1000 range. Once I have my reserves built up enough using the cash flow, I buy another and do the process all over again.

Another thing I'm considering is to add a rehab and sale to help rebuild the reserves a little quicker. My goal is to have a decent amount of passive income. The rentals provide that, whereas doing rehabs are more of an active income.

Termites it is. My primary house had 2 walls that looked similar. Termites had eaten the paper from the drywall from floor to ceiling. I was able to go along with my finger and poke the tunnels that they had eaten.

Luckily, they hadn't done much damage to the wood structure and had chosen to go after the paper instead. Maybe the paper is easier for them to eat. After treating for termites, I replaced the drywall and fixed a small portion of the framing they had damaged and all was good. It did cost me about $1200 for the termite treatment though.

Like Jeffrey C, I grew up in a farm house with a tin roof. Love the sound of rain on a tin roof!! It's very cost effective and will last a LONG time!!

Not saying it won't happen, but you might be surprised what the appraiser will say in his report. I recently bought a REO that had similar issues. The concrete driveway was broken up and the slab had tilted toward the house. Any rain from the front half of the house would end up emptying right at the foundation of the house. The water had soaked into the house and caused mold/mildew to start in the crawlspace on this tri-level house.

I fully expected the appraiser to point this out in their report, but they just noted the dampness and stated it smelled somewhat musty and that it was normal for a house in this area.

In my estimated repairs list that I turned into the bank, I included a line for mold remediation. My loan officer called me after he got the appraisal and told me that since the appraiser didn't mention it, I should remove that line and hide that cost in another line item. He said that would give me the best chance for underwriting to ok the loan.

So, just because you see it (and Ray Charles could see it), doesn't mean that it will be noted in the appraisal.

It's probably due to the backset of the door. Some doors are are 2 3/8, and some are 2 3/4. You should be able to flip the cylinder pretty easily.

So long as I have a relatively few number of rental units, I will give them a call and remind them if the rent is not paid by the 1st. I remind them that there is a late fee due it it is not paid by the 3rd. I don't think it's a big deal right now. Once (maybe "if") I get to 10 units, I might have to rethink that. I'll probably go the letter route first. That may not get there in time for the 3rd, but will serve as a reminder that it is their responsibility to pay on time every month.

My insurance company does ask if I have a deck. Not sure if it increases the cost, really never thought to ask. Might be best to check with your agent to make sure.

How much of a pop to the rent rate do you think the deck will give?

Not sure I'd want FEMA trailers to be my first foray into REI. They were very cheaply made and do not hold up very well to everyday use. You might get a couple of years out of them before they start falling apart. There are also the formaldehyde issues that Greg mentions.

For setup costs, talk to a local mobile home installer. Find out what they charge and what features they require before they can install a unit. That will give you a good indication of what you will be faced with.

Also, around here FEMA trailers aren't going for much more than 4k, so there's not much margin on them from the start. Just make sure you run your numbers and know what you're getting into.

That's funny!! On a similar note, I recently (a month ago) had a concrete driveway that needed replaced. I called and talked to half a dozen people who promised to go out, measure and give me a quote. I've only heard back from one of them. I fully anticipate hearing from them this winter when they feel they need work!