All Forum Posts by: Jim Goebel

@Daniel Bruder

@Marcus Auerbach

Marcus is correct.  Some foundation issues are simpler to fix than others.  It does sound like you have some settling or moving, but this might be due to numerous things.  If it's a wall, then rebuilding the wall can cost money.  Don't assume this, though.  I had something like this in a kitchen but the solution wasn't rebuilding a wall, it was adding a footer/beam system under the kitchen floor.

The order would be fix the settling first, then move on to your tile.  Generally, putting down a monolithic substrate like durarock, or densboard, below your tile is the way to go.

@Louis Zameryka

There are folks on this forum that push the turnkey stuff, however I'd say tread warily there.  I've heard more than a few stories of people getting taken.

It sounds like you'd be an out of area investor?  I'm guessing that based on the fact that you're from NY.

In my opinion, Real Estate is best done 'hands on' and with the outlook for some scale.  If you can get into a good syndication and can trust its operators, perhaps that's a route.

@Julian M.

I'm not sure that's where I would start.  I think more information would be helpful though for folks to better reply.

@Dar Karc

Can you start work on the place?  I'm not sure they are tenants from what you've shared.  When there are power tools running and demo crews loading crap into dumpsters, that makes most people feel on edge.

@Ty Parsons

As a rule of thumb, transparency is your best policy.  I'd discuss the situation with the old tenants and explain to them that you have a responsibility to send a returned deposit by a certain amount of time, but it would involve a good faith estimate of repair costs given that you're unable to complete the work.

If you can nail down a perfectly accurate bid though, you might be able to know for certain what you'll pay.

I also think though, that you're shooting to be a little too perfect.  You'll need to kind of embrace the messiness of navigating situations like this and in turn, embrace a flexible view of your tenant relationships.

@Michael Thrower

Can you increase your earning potential?  That'd be my first order of business.  

@Carl Saxon

At least in my jurisdiction, each of these properties that I've purchased had a small dollar amount associated with the actual nuisance action.  So far, so good - as we're working on two right now - but the main risk is just making sure you have the stomach and the chops to navigate these projects and at the pace your jurisdiction demands.

I think your best bet is to just inquire with the sellers.  If they are selling, and want out from under, generally speaking whatever judgments attach to the property, it'd be customary to expect the seller to get those cleared up for you.  That's more or less how it went for our last two purchases.  So far, Des Moines has been functional to work with in terms of getting through the work.  

@Bruce P.

Hey Bruce I'm speculating here, but I would guess those values are the design firms' ways of covering themselves for the CAPACITY of the supply system.  In a nutshell, even though the actual loads (ie: Btu/hr) of the water heater, cooling, and heating system, are not anywhere close to that - my guess is that Title 24 dictates what the supply capacity (ie: the NG lines typically for the water heater and furnace) must be.  In other words, the pipe sizes need to be large enough to support for instance a future 'on demand' (ie tank-less) water heater as an example.  These on demand units use a lot more Btu/hr right then and there, vs using less but 'storing' the heat.  So, you need higher capacity but tend to get better energy performance from those on demand units.

I'm also speculating, on the intent of the law/Title 24 but I'd bet those values are talking about the incoming supply lines into the house - for instance it seems reasonable to supply up to 200kBtu/hr for the overall NG capacity, perhaps more - given that it's a nominal additional cost when the ground is opened up for those lines - and it allows more flexibility for future work (ie: adding on to the house, or advances in technology like that tank-less water heater I mentioned).

@Alfonso Montejano

No one can be quite as familiar with your situation as you are, but what you're describing doesn't sound good.  Especially without scale, and especially without strong assets, out of state / area investing is tough.  I'd be inclined to get out from under that one, and chalk it up to a lesson learned (or a few!)

Good luck.

@Geoff Husa

Hi Geoff, the market timing (ie: when to get out and how of the stock market) stuff aside, I think the MOST strategic thing to do involves developing and growing your capabilities.  What that means will be unique to your circumstances and where you're starting from.