All Forum Posts by: Joe Steinheiser

 Bruce,

These methods have been around for a long time now and are not jury-rigged fixes. They are a proven, commercially viable solution that will last a very long time. I work for a utility and they save millions of dollars over full replacement and repairs. Water and sewer utilities are using these methods all the time.

Joe

Joe

 Steve,

Zoom drain did the job. The other prices were that high because there were two breaks/cracks in two different spots and one was under a porch meaning no digging with a backhoe and a lot of hand excavation. Certainly slip lining or pipe bursting will not be the right fix for every situation. I guess I didn't make that clear.

Joe

If the pipe is cracked all the plumbers are going to want to dig it all up and replace the pipe, very expensive. Now that may be necessary but in a lot of cases you can have it slip-lined to repair it at a MUCH cheaper cost. Zoom Drain or Pipe Shark are a couple that do trenchless pipe repair. Just had one done in Lansdale for a third of the cost $5k instead of $15k 

Debt service? Or did you pay cash?

Taxes are really high for what your getting. Then rents are relatively low.

Right place, right time, right Realtor. ;)

Closing costs, deposit and rehab I have $70K in to this property. I do think it has great cash flow, the CoC return is good too. I think I will keep it and, like you mentioned, get a HELOC instead of Refi. If I sold and took the money it will be very hard to find a better property. The market is crazy and it's hard to find a good rental deal right now.

My long term goal is cash flow for sure. CF should probably be reduced to $700 since I didn't account for vacancy or maintenance in those numbers. The house is essentially brand new so I don't expect much maintenance in the first year but I understand that it will be there sooner or later.

I just never expected the value to go as high as it is now so that short term profit had me thinking. I'll probably just refinance, still have good cash flow, and take some of the cash out for the next one.

Alex Uman,

I won't have a problem finding a tenant so holding costs are not an issue. And my original plan and long term goal was for a rental property.  But the market is crazy and I did not expect to be able to sell for that kind of profit.

Wouldn't it be income tax if I sell within the first year but capital gains tax if I hold it for a year or more?

Joe

I bought a property with the intent of rehabbing it and then renting it. I also knew I had another exit strategy of selling if need be. The market is so crazy that I'm considering selling now. Here are the numbers:

I could sell and profit $75K to $90K after buying, selling, and rehab costs but before taxes. I would also get my deposit back as well, $32K. Hopefully I'd be able to flip that money into another property (tax free? I'll have to educate myself on that real quick)

or

Rent at about $850 cash flow a month. (considering everything is new including heater, AC, appliances, bathrooms, kitchen, etc I don't think I would have capital expenditures any time soon). That being said, I would be banking this money anyway as I don't need it nor do I just want to spend it.

or

Put a renter in there and sell in a little less than a year. With certain risks including the housing market cooling off a little or a lot

Opinions? Advantages or disadvantages of either of those strategies?

Thanks,

Joe