All Forum Posts by: Jesse L. Weaver

@Nathan Grabau nailed the warranty part. Everyone will give you a “lifetime warranty”. It’s a sales tactic for all of the manufactures. In reality you will rarely find a manufacturer defect. I don’t know the exact number but I would guess it’s north of 99% of new roof problems result from poor install. 

Do you know anyone in the area who has had a roof replaced? Who did they use? How was their experience?

 Hello Amanda, 

No one likes paying interest if they don't have to! As long as you are keeping enough in reserves, use the cash and put that 8% in your pocket. Or towards the next deal.

Hi John,

Our team helps a lot of out of state investors acquire and operate small multis in Central PA. I'd love to chat sometime and see if we would be a good fit, feel free to reach out!

It sounds like you need a good agent with local market knowledge. If you are struggling, reach out to a professional who does it for a living!

 This can be very different for people with different skill sets. Me personally, if I see foundation issues I shy away from it because I'm not experienced there. If I see a roof with massive holes and rotten rafters- sign me up! While it may scare a lot of people off, I will be able to look at it and know exactly how to fix it.

If you don't have experience in renovations, I really recommend looking for something lighter for your first one. I promise it's not as easy as the shows make it look. Maybe a project that needs some paint and a couple new floors. Easy fixes with less risk. You may not see the profit you could on a major rehab but you also won't have the risk. It takes time to learn what to look for in a project. 

As a general rule of thumb, a lot of times your bigger ticket items are going to be- foundation, on-site septic, roof problems, mechanicals, etc.

I did not notice anything in your cash flow analysis about taxes, insurance, city licensing/inspections, or any utilities you as the owner might pay. Make sure to include those!

Hello Alaura,

RentOmeter is an option but you can only do so many reports until you have to pay. I find it to be fairly close in my market but I know that's not the case across the board. I also just look at what is available on the many rental websites and compare the subject property to those. Zillow, Hotpads, Apartments.com, etc. 

Hi Teairra,

If you are looking to generate interest you may find success adding a little more information. Even the basics- location, who owns the homes, public/private utilities, rough expense numbers.

Good move backing out of a deal that appraised $200k low. What would this 1 building appraise at? Previously it was at $50k/unit so that would value this 7 unit building at $350k. Does that seem accurate? I know there's a lot more that goes into it, maybe these units are a lot nicer?

$821/month average between the 7 units at a $57,850/unit purchase price seems like it could be a good deal with the limited knowledge available. Make sure to factor in vacancy rates for your area, taxes/insurance, management, maintenance (will you be putting any $$ into the unit after eviction?), license/inspection fees, utilities, etc. 

In regards to the financing- 6% down and 6% interest is pretty good in the current climate. How long is the term?

Network, network, network- posting on Facebook pages local to your market, attending local real estate meet-ups (meetup.com or search on here), talk to as many people as you can. Whenever you talk to someone always mention that you are looking for end buyers incase they (or anyone they know!!) may be interested. At church, at school, at the grocery store, at the restaurant, just have conversations with people. Almost everyone at least knows someone who is looking to buy and might put you in touch with them. Best of luck!