All Forum Posts by: John Bucknum

just wanted to follow up on this discussion with our resolution.

My GC started completed the job in 4 days, tenant was out of town with softball team, so worked out well.  As I mentioned she received a $100 gift card and we cut her new month's rent in half $325 from $650. So basically $425.  Mother was not happy about the mess my GC created, but with  any concrete work, dust goes everywhere. he sealed the bathroom door while working and then did a thorough cleaning after the job was complete.  

Hope this can help others with similar situations.

We own an 11 unit property that has had numerous issues with sewage backups since we bought it about 3 years ago.  Place was empty when we bought it and in horrendous shape due terrible tenants and awful management company.  We successfully rehab the property and have steadily filled the place to 10/11 units rented.  

We have had reoccurring sewage issues with maintenance going out multiple times to fish out tampons, hair weaves, child handcuffs, razor blades, red solo cups, etc.  We thought we were finally clear until 3 months ago, same apartment kept having issues with blocked toilet and little black sewage flies in apartment.  Maintenance kept putting flip killer down shower drain and we actually removed and replaced toilet.  Eventually multiple camera scopes revealed pipe had settle and was bowing down.  Removed shower pan and found that the found no plumbing from shower drain to main sewage line and it resulted in stone settling out from under main sewage line causing the bowing. Currently in process of repairing shower which will take estimated 5 days.

The current tenant is a college student and has been there for 3 months, she has had issues from day one especially with flies. Toilet would back up every week or 2.  Maintenance would go out that day or next to resolve the problem and never failed to clear the toilet clog until about 4 weeks ago. At which point we called in a plumber and he felt the pipe had a break causing all the issues, but this has since turn out not to be the cases described above. 

To our knowledge the tenant never stopped using the shower. 

As owners obviously we are upset that this tenant was inconveninced and had to continue to deal with the ongoing toilet issues and maintenance coming out.  Her parents were very upset and demanded that we waive a months rent.  We sent a $100 gift card. We offered her the ability to move to the vacant apartment which is the same size, but doesn't have a bedroom window, but otherwise all 11 units are identical.

Since discovering the root of the problem with the shower and it's lack of plumbing, she sent an email to our PM and again demanded a months rent and threaten to contact the inspector.

Looking for advice on the situation.  Wife/business partner are having dififculty deciding.

@Craig Clark we are in the same boat, first time doing a flip in city of pittsburgh. Yes the one stop portal is open and surprisingly I got my building permit rather quickly, less than 1.5 weeks, actually started a week before closing to get it.  

@Anthony Angotti- I was curious if you had any insight on the issue I am having below

I am running into trouble with CoP licensing. My GC, that I have used on multiple properties and has been great, is not licensed in CoP, so trying to find a work around to pull the elec/plumbing permits and have my guy do the work and/or collaborate on the work.

Thats awesome, nice job

@Charles Carillo

@Michael Ablan

@Tarik Turner

Hi Guys, 

thanks for the responses.  I agree with all off you, I would like to keep it in house and hopefully avoid the @ prepay penalty.  The banker had mentioned they may be able to rework it and include the documented improvements we made in a refinance.  

Like I mentioned we are sitting down next week and discuss futures plans and how we can make a refinance work for both parties. 

have a good holiday! 

Hello BPers, 

We are in the midst of stabilizing our first real estate investment.  its an 11 unit apartment complex that was severely distressed and empty when we bought it.  located in western PA in a college town for 300k.  We used conventional financing with 20% down and are going to be at 100k in rehab.  9/11 units completed, remaining 2 will be done in the next 3 weeks.  7/11 rented for upcoming year.  

Using the BP calculators we anticipate having minimum190k in equity built up when completely stabilized.  

  I don't know if there is typically a seasoning period for most lenders.  The current lender has a 2% early pay off penalty, with 6% mortgage for 5 years with 20 year amortization schedule. 

what are my options? 

Just my 2 cents, but i dont think it's necessary. When you find a deal and it meets your criteria for your above mentioned data points as well as your ROI, you can go act on it, ie LOI, PSA and so on.

Plus some of the categories seem subjective, renter quality etc

Good luck!

@Anthony Angotti

The contract is with County Hauling, per California Boro CEO the boro has a contract with them and i am required to use them. 

hi Sara, 

I am a relative new investor myself, in the midst of turning an 11 unit around outside of Pittsburgh , just curious about the garbage @ $500?  I would assume you could use a 2 yard dumpster which I use and was recommended for my building size, only costs $110 a month. 

Otherwise looks like a solid deal.

thanks

John 

@Paul Sandhu- thanks Paul you never fail to deliver on good information and hilarious content. as far as the area we are looking in, I think its safe to say it would be mostly for sports events, museums, casino, etc.  so based on the other BNBs that have a lot of bookings  in the area the inside should be unique and trendy and fairly upscale

@Ethan Cooke-thanks Ethan, I like the efficiency/creativity of the model you have.  I will most certainly look into that, just as an aside, I thought San Fransicso was really cranking down on short term rentals?

@Benjamin Vail thanks Benjamin, good advice, i have been trying to get a feel for what superhosts in these areas are writing about their place and would just simply model it re: being a rougher neighborhood.