All Forum Posts by: Jim Y.

Here’s a finished flip property a few blocks away from the one you’re looking at:  https://www.redfin.com/WA/Tacoma/227-S-38th-St-98418/home/2962336

You could probably rent as-is, but would likely get lower rents and tenants. 

I think the property you're looking at is priced too close to ARV. Any mistake or issues with the city or utilities and you can blow through the spread in a day.

I'd say the most important information would be how much lawyer and court costs would be for you upfront now compared to what you might possibly be awarded sometime in the future. Since you were wise enough to collect first and last month rent, you could use that to cover vacancy loss while finding a new tenant. Shouldn't take long, I hear people are tripping over themselves to rent good homes.

Jeff B. I think that is a poor analogy. Investment property has very little in common with cars. Rick M. An experienced builder can build a property for less cost than an existing comparable property. The end result is the new building will be worth more than a similar existing building, not only in lower initial cost, but also in much lower maintenance and greater equity to access. New buildings generally attract better tenants. However, existing has a benefit vs. new in that it can generate revenue from day one, whereas you may have to wait a year or longer for revenue when building new. Ultimately, it all depends on your long-term investment strategy.

Porous surfaces such as wood, carpet, gypsum, etc., will absorb animal smells and retain them for almost an eternity. Animals constantly give off odors which by their very nature are designed to be noticeable. Cleaners will only remove the surface odors, while the deep odors remain. This is the same for tobacco smoke. Your options are full removal of stained material or using something stronger than animal odors, such as oil based primers to penetrate and seal. It has to be a strong enough chemical. Plant-based compounds will only mask temporarily.

Real estate price correction and real estate market crash are not the same thing. It is easy to walk away from a house you put nothing down on, then cash-out refinanced to buy a Hummer. It is entirely different to walk away from a house you put down 20% or more, and no one will walk away from a house they bought cash. There are no janitors and school bus drivers buying 700k houses with no doc loans today.

Marian Smith You missed the point where he said he got this bid from a GC. If you want to spend many hours searching for (most likely uninsured and not bonded) laborers for piecemeal work, going to supply houses for all materials, and handling many payments, you could probably shave off a few bucks.

Ryan Sasscer In the PNW, if those prices include city permits and materials, they would be very reasonable. Your part of the country may be different. The gas line and room conversion may be a concern. Verify thoroughly that your GC will have all permits and pass inspections.

Cedric Ballet $8 million in LA is only two houses, right? ;) If you're in a higher price bracket, the buyers are more savvy. Questions such as material origin, window inert gas type, LEED or GBC certs, etc will arise. Questions most listing brokers won't know the answers to and will defer back to you. So you likely won't save any time there. If you get an agent's license, you will still have to do a commission split with the agency. So if you want to minimize that, you will have to open up your own brokerage company. Some licensing requirements there. Still, much much cheaper than $400,000. If pay yourself commission, that will probably be taxed differently than the profit from your sales. Maybe structure a minimum flat fee with the brokerage you create to minimize tax impact.

Chris Gorman While you're ripping up all your floors, might as well rip up your joists as they also can flex. Replace with steel I-beams. Better yet, tear down your house and cast the entire thing out of two foot thick reinforced concrete ;) Everything "flexes", settles, and moves constantly. Installing tile properly over two layer of subfloor is well within the flex tolerance of the tile and will last for a long time. As a counterpoint, walk into any commercial building and in many you can see a crack in the concrete slab transfer right through the tile on top.

Chris Gorman That's what I do. Use screws long enough to penetrate the oak and bite into the wood beneath. You may need to pre-drill the oak if it is very dense. 10"x10" grid screw pattern will be sufficient. The primary purpose of the cement board is to provide a suitable bond surface for mortars.