All Forum Posts by: John Collins

It always comes down to you in the end. I've been in other fields and RE is  the least "cutthroat" of all of the. Unless you are a billionaire developer dealing with environmentalists, deadlines, huge crews etc. who needs to bully his way around, then you know what you're getting into. You can be an agent / investor, not be cut throat , make a living. However you do need to be switched on , not get caught up in excuses and do alot of due diligence , moreso than a regular job even. 

I have no need to waste my entire life in pursuit of unsustainability, a million mansions, one upmanship etc. things that never matter in the end. I never haggle, often cut checks I don't have to, serve neighbors on investment properties well by always communicating, not putting in tenants with pitbulls or any kind of questionable history etc. even when I have longstanding vacancies. 

Always comes down to you in the end, we have that option here.. this isn't China. 

IMO the whole point of RE investment is to use that $40k to 

1. Invest in 5 properties worth $80,000 with a 10% downpayment

2. Invest in 5 properties worth $40,000 with a 20% downpayment

3. Invest in a $200k property with a 20% downpayment. 

Obviously that wouldn't include what you've set aside for repairs, vacancies etc and if that factors into the original $40k. 

Establish positive cash flow seen as income, the banks eventually get more lenient with the loans they give you and you start expanding the portfolio. I wouldn't understand just using the entire lumpsum at once. 

Thank you for the info. I would be looking at them only for investor purposes and don't want to outbid someone willing to pay cash for an actual home. However, once the bidding sites get their hands on them with the bank setting a reserve price (this is the 2nd auction after the 1st had 5 bidders that didn't meet the reserve price), and the work still needing to be put in.. it turns into an OK deal, which are out there on a weekly basis, instead of the great one you see once every couple of months if you are lucky. 

Pictures tell you one thing, but being there with a pro is another. I would fly out for a couple days and schedule 3, maybe 4 different inspectors/foundation specialists to give you their quotes and opinions. This is a big deal and you should be there to see and understand it and make sure these guys aren't just trying to get themselves extra work or "swinging and missing" as some can do. 

I have had foundation issues causing settling where I had to remove a concrete patio that was sloping into the house, instead of away from it. Now I put in things sloping away from the house. I put up gutters, which were not very expensive. I put river rock around the sides of the house and any water that came down landed on a hard surface, not the soil. I also graded and put some drainage in the yard where water would pool and had it roll away. I put up a couple of support beams that weren't really needed but I did it myself with a friend, so wasn't too expensive.  The next storm I stood outside myself watching the water move away from the house like a beautifully orchestrated symphony. 

That being said, my situation and yours likely have 0 to do with each other, so get the pro's out there to take a look. 

At this point it has gone above 250k and is an extra $14k I wasn't expecting, in addition to the reserve price being higher than expected. I found this foreclosure myself before finding out  hubzu had control of the bidding... is there any way I can make direct offers to the bank next time? 

That is a huge number to me. I am using hubzu.com to bid up to/around 250k and they clarify this is their fee specifically for "hosting" the auction, separate from earnest money or anything that goes to the actual seller (which is a bank in this case). 

How much rent do you project you'll be getting / month? That factors into the type of flooring I get, the quality of kitchen and bath renovations for me. There are certain things you can do that save you money (like resurfacing shower tiles and rubs instead of ripping them out and putting in new ones) and certain things you want to have brand new. with countertops you may want non porous quartz that's a little more expensive than the lowest grade of granite, or you may just want to put in a lower grade of granite and let it sit there for 15 years. So it does come down to your design decisions which for me is based on expected monthly return, the neighborhood it's in and what draws people to that area. 

The kitchen cabinets look fine, I would not replace them unless there is rotting wood or mold on the inside. 

LVP is a great flooring choice for this price point, you can put it everywhere (even the bathrooms). 

I would replace the toilets/flooring in the bathrooms, add a new vanity, and just fix and resurface the tile and tub for showers along with new fixtures. 

Is the wood side paneling real wood or some kind of plastic replicate? If it's real I would leave it on and just sand/recondition/restain it. 

For paint I recommend using a smell and stain blocking primer wherever the walls were previously dirty or any side paneling you take down. Also, I like using higher quality paints as they cover more area and give the place a better look when finished. 

IMO you can easily come under the budgeted amount if you are a little more picky with what the contractor does as opposed to "have at it". 

I think it's ugly to have engineered wood and tile downstairs and then have laminate put upstairs (and staircase). That's too many different types of hard flooring... plus most renters at this price point prefer carpet in their rooms. I've spoken to agents and those looking at houses. And yes, it's for renting not buying. 

I would be doing this with a long term view in mind as the existing carpet upstairs is "shaggy" and not too many people like it in addition to it not being good for allergies. 

I have a property that has been on the market for a while. I finally found someone interested however she is worried about her kids allergies with the existing carpet (used upstairs only, downstairs is all wood or tile). I am willing to offer to replace the existing carpet with hypoallergenic carpet - does anyone know how effective that is for people with allergies and what the general cost /sq ft is, with and without install? 

 1. When they bought the property, they should have done a plumber test. That means an air pressure test and a plumber running a camera through the pipes. I also ended up doing a $8,000 dig and relay of sewage pipes on a flip because they were old PVC20 pipes (last 2 decades are 40) that were pushed out of place by tree roots. I did not run a test on the pipes on inspection, although I did a regular inspection for foundation, electrical etc. So it was on me , I accepted it. 

2. At this point, I don't know how much you sold it for or what you have, but you can have your plumber go in there and do a camera test or whatever is needed for probably $200. You can determine whether you want to pay half or not depending on how much you like them ;].. but it's not your legal obligation or even necessary courtesy.