All Forum Posts by: Jordan Thompson

@Chris Seveney not that I recall specifically but I’m sure it has at some point.  The new lines were put under the slab footings so I don’t think the concrete was disturbed at the perimeter at all.

Any chance a fitting or coupling could be leaking?  Seems unlikely to leak that much though and only when it’s raining.  Should any moisture barrier have been installed?

Hi all,

Just last week, a plumber completed sewer line replacements in each unit of my duplex.  The cast iron was rusted through causing backups, so an insurance claim was filed, and 2 new PVC lines were installed under slab from appliances to septic tank.  Flushing strength is good and I am working towards either repairing flooring and other damage myself, or hiring someone. 

Last night (5 days after repair) it rained ALL DAY and the tenants sent a video of water between the old stick down floor and the new LVP I installed on top of it (this was installed earlier this year before the backup, was cut through for the sewer line replacement, and will need replacement in the living room).  I have never had an issue with this, so my first inclination is that the most recent in-depth repair must be part of the cause, although I don't believe correlation = causation all the time... The plumber is returning today to help identify the source and we still need to confirm if just 1 unit or both units have been affected with this water infiltration.

So far my tenants have been very patient, and I have been expedient in making them and their living conditions a priority. I'm kind of getting lost on where to go with this problem aside from the plumber returning; Any concrete and sewer gurus have some advice on the leak?  Other than my expedience, what more can I do to keep my tenants as happy as possible?

Oh wow... it seems like this sort of business practice should be regulated to some degree.  I know the insurance industry is highly governed and regulated, but these warranty companies (home and vehicle) like to fly under the radar.

I think this will be the last time I ever have a home warranty unless it's an accommodation from a purchase like this one originally was.

That makes sense.  That was my goal, actually.  My wife and I purchased the property 18 months ago, and both sides have been rehabbed, new tenants placed and things were going remarkably well until this.  I had only been able to save about 1800 or so just for this property after the rehabs but this has been a great learning experience, albeit painful.

I appreciate the advice

@Charles Carillo wonderful advice.  I think this is ultimately what I will do long term and what ended up happening this time.  How much do you generally try to keep in reserve for your properties?

@Colleen F. Yikes! I don't have quite 40 ft thankfully.  They did put in a new bi-directional cleanout so accessing everything is much easier now.  We actually found that the septic is in the front yard, oddly. The driveway and parking lot are in the backyard because the driveway has to climb a hill and the backyard was the only place to put the parking lot, and they can't park on the septic tank.  Unfortunately, the original plumbers installed all the directional T fittings pointing towards the backyard (parking lot side) because that's where septic tanks in our area are usually located; the slab must have been poured and the tank installed afterwards and no one dug back in the correct the fittings so that's an additional problem.  I have a claim filed with insurance and hopefully this can be corrected.

@Nathan Gesner  Right you are.  And Casinos aren't built on winners.  On a side note, Nathan, I self manage for now but have considered hiring a property manager for the whole portfolio as I acquire more properties.  Are insurance claims and this type of repair something that a property manager would manage?  Obviously I would be responsible for the bill, but what are the boundaries a PM would work in to correct a problem like this?

The warranty company denied my claim so fast it wasn't even funny.  I'll have the chance to appeal and work with a case manager so hopefully we can get at least some of this reimbursed, but I won't be holding my breath.

Thanks for the input everyone!

Hi all, 

I recently had both of my (amazing) tenants report septic backup through their toilets.  Each side of my duplex is 2/1.  I called the septic company that did the original inspection 18 months ago at the acquisition, and they pumped the tank (only around 60% full) and tried to scope the sewage line, but couldn't since the tank was old and they couldn't reach the line from the lid.  Anyway, I called a plumber, and they got the backup cleaned, found the line, popped an "emergency" diagnosis hole in it so they could scope and found the 4" cast iron line rusted through in the bottom which was causing the periodic blockages.  It's being replaced as we speak from the house to the tank, hopefully under the slab is in better condition.  So, all in all, I'm about $7,500 in the hole with more to come depending on what they find, but my home warranty company has been less than helpful.  No portion of the claim was approved, and they have so much red tape on pre-approving diagnosis, approved corrections, etc.  I think my insurance will cover a lot of the interior damages, but general life cycles of plumbing (and other) systems I believe are on the homeowner.

Has anyone here had any good luck with a warranty company?  Do they all seem as scammy?  I need to understand how to better protect myself from the inevitable breakdown of equipment and systems aside from the routine maintenance they require.

My tenants have been more than patient with this - couldn't ask for better!

Thanks!

@Nik Moushon I really appreciate you taking the time to write all of that up in such detail, thank you!  Individual lots completely makes sense, and the point about the exit strategy is a great one.

Considering the kitchen and bathrooms make up a large portion of the cost and the remaining square footage is not quite as impactful, it does make sense in my mind to upsize the house to a more traditional size.  Around here, the 650 to 800 sqft apartments are popular, and the 900 sqft homes are rarely vacant so I think that may be a good target size while giving me the flexibility of not having the follow the trendy locations quite so closely.

This gives me a ton of information to chase and truly appreciate all the feedback.

Thanks!

Jordan

@Teri Feeney Styers Wow those look great! I checked into codes here, and as long as the meeting the NC residential building code then they're fine if they're built on site or modular.

Did you buy blueprints online or go through an architect and have a GC build them?

Thanks!

@Carini Rochester good points, especially the fire protection one.

On the 2 to 3x greater price for tiny houses than frame construction, is that for a pre-manufactured home built offsite and brought in or a tiny home built on-site?

I'm working with my dad on an upcoming project of his: building tiny-ish homes on his farm (400 to 600 sqft each). The plan is to build 3 homes: 2 for long term rentals and 1 for STR. Land is already his and paid for, building materials will be out of pocket, he and I along with a few friends will do the construction. Septic, well, and utilities are already in place from a previous home that burned in that spot (different story and unrelated to existing utilities). Still some pieces to put in place, but hopefully he'll pull the trigger on getting started. I'm incredibly excited to work and learn.

I love the idea and would like to do the same for myself, but I do not currently have the land. If the logistics and numbers work, I'm committed to seeing this through. My main goal is make a healthy return (definition of health tbd) while providing affordable housing. I already have 2 units that I purchased 11/21, rehabbed, and self manage which surpass the 1% rule, and yield a 14.5% CoC return so I'm comfortable with the physical work, property management, and associated risk.

Now, I'm at the end of my knowledge leash so I'm turning to the pros at my BP home.  

Givens for each scenario: 

1. Land must have road access or room to build one to an existing road

2. Land must either have access to water/septic/utilities or accommodate well and septic and be close enough to run utilities

3. All actions taken will be legal.  I will break the law under no circumstances - I will pull permits and get approvals where required.

4. I intend to build 8 - 14 units and self manage with my existing processes.

5. I know cost will vary wildly with land constraints, location,  fit/finish, size and amenities - this is on my list to determine, but I need to understand the larger map first.

The part I'm having trouble understanding is the land acquisition, zoning and law adherence (I know I'll need to check local guidelines - still haven't determined exact county yet). Here are my ideas:

Idea 1: purchase 1.5 to 3 acres outright with no loan.  subdivide the land into individual lots of ~5k-7k sq ft (I'm open to keeping the land as 1 parcel - advice is welcome), build each unit out of pocket as cash is available.

Idea 2: purchase 1.5 to 3 acres outright with no loan.  Get a loan to build all units (or large batch) at one time.

Idea 3: Finance the land, build the units out of pocket (my least favorite option).

My questions:

1. I know tiny homes can be considered RV's, any idea on zoning requirements and the process of re-zoning?

2. What should I watch out for or avoid altogether? 

3. What is the best place to find current state/county regulations and laws on this type of community?

4. If any of you have done this or something like it, would you do it again? or differently?

All questions and feedback are welcome.  Thanks, Jordan