All Forum Posts by: Account Closed

Hey Anthony,

Each investor has to decide for themselves what is important.  For some it is cashflow.  For some it is tax breaks.  For others it might be appreciation.  This deal has negative cashflow without taking anything out for capEx or management.  If you need to show a loss on your taxes then talk with an accountant to be sure this will work for you.  If you need cashflow then this deal is not good.  If you want appreciation then you will lose $800 per month while waiting for the property to appreciate.  For me cashflow is king so I would pass on this deal.  I have taken deals where cashflow is not where I would like it because I know the neighborhood is appreciating so in a year or 2 the rents will make the property cashflow where I like it.

Hey Robert,

Call me at 563-272-0306 some time and we can review your deals.

When I bought this property I had intended to just paint it and put in new carpet.  When we pulled up the carpet we discovered that the dining area has 2 layers of underlayment with linoleum on it making it taller than the living room subfloor.  Removing these 2 layers of underlayment will make the dining area lower than the kitchen floor.  So, to make a long story short I am going to end up removing all of the appliances, cabinets, and flooring in the kitchen then put in an entirely new kitchen with vinyl planking in the kitchen and extending through the dining area as well as the new carpet.

Hey Shawn,

Has a date been set yet for the January meeting?

Thanks,

Jeff LeBeau

Investment Info:

Single-family residence buy & hold investment in Bettendorf.

Purchase price: $180,000
Cash invested: $5,000

Enter this lovely home into a nice sized foyer that is open to both the upstairs living room as well as lower level rec room. This 4BR, 2BA side split home features OVER 2,000 SQ. FT. of living space, has an OPEN floor plan with CATHEDRAL ceilings, lots of windows & a dining room that opens to a screened porch. From the screened porch, steps lead you to the nicely landscaped, private FENCED backyard.

What made you interested in investing in this type of deal?

The neighborhood is great! It is in one of the best school districts. The back yard is fenced in and it has a 3 season room in back.

How did you find this deal and how did you negotiate it?

I found this property on the MLS. It had been listed since October and has been sitting empty since then. The seller really wanted out so I got a good deal.

How did you finance this deal?

I got a commercial loan for 100% financing at 4.35%.

How did you add value to the deal?

I will do some cosmetic improvements like paint and carpet. I will upgrade the second bathroom also.

What was the outcome?

Closing on it January 15th.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I worked with CBI Bank to get the loan. They are a small, local bank.

Thanks to everyone for your input.  I really appreciate the help.

Is it a god idea to install tankless water heaters in rental units?

@Matt Holmer

Thanks so much!

In January I will need to add electriciy for a dryer and also venting for that dryer.  The previous owner was a lady that just hung her laundry to dry.  I might have other improvements n this property in the future that would be more involved, like removing paneling on the walls or adding a bedroom in the basement.

I went to the BP marketplace looking for contractors in Davenport or Bettendorf Iowa.  There were not very many contractors listed.  Does anyone know of some good contractors to do rehabs?