All Forum Posts by: Joseph Adelmann

Hello Bpers!

So I had a home inspection on the 3 unit house I am purchasing and came up with a  list of items to have the sellers repair. They came back not willing to fix these issues but instead offering a $1000 credit at closing. So can anyone tell me what of the following items are doable as a complete noob to home improvements but pick things up quickly:

1. Electrical work- install about a half dozen GFCI, fix a splice that doesn't have a junction box, and correct a double tap in the breaker box. But the GFCI would be replacing two prong outlets, so I'm not sure if there is a ground line to those outlets. What electrical skill level is required to install a ground line?

2. Install safety cables in the springs of one of the overhead garage openers.

3. Add a railing on the stairs leading down to the basement.

4. Fix a leaky faucet.

5. Remove exterior paint on window trimmings, this is required for a FHA loan. The problem is it's an old home so I would think the paint would have lead in it. In which case, does anything special have to be done to remove lead based paint? I mean aside from eating it...

I'm going to get a quote on all of this work but does anyone know the costs to have a contractor do these fixes?

Thanks,

Joe

@Jeff G. provides a good rule of thumb for cash flow. And I've been looking to keep the cap rate above 8% in line with this article from Ali Boone, http://www.biggerpockets.com/renewsblog/2013/01/19/real-estate-math/. Have properties been appreciating at a high rate in the area this property is located? Do you have the opportunity to increase the rent based on a couple of minor improvement? Otherwise it doesn't seem like a great deal. 

Hey @Patrick C.,

How did you calculate your cap rate? I came up with 4.56% by subtracting all of your monthly expenses except your mortgage from your monthly rent, multiplying that by 12 and then dividing by 190,000. So that ends up as (1200-478)*12/190000. I'm not sure if that is correct but since cap rate is the return if you bought the property in all cash, the mortgage shouldn't be included. What are your real estate investing requirements when it comes to cash flow and cap rate? 

Dear BPers,

An investor is selling 5 houses, each one is currently rented for $900 per month, bundled together for $350K. What are the options available to complete a deal like this with no money down? Thanks in advance!

Joe

@Michael Walton, I am paying $500 for a full home inspection for a triplex on Monday so your rate seems reasonable. Good luck with the inspection!

Hey @Colton S., I would recommend checking out the Biggerpockets podcast notes because they ask each guest their recommendations on good real estate and business books. The link below is to episode 7 (which I just listened to it so its the first that comes to mind), where the guest was a buy and hold real estate investor in Souther California. I would also recommend listening to the podcasts because they do a great job getting guests involved in different areas of real estate investing. Hope this helps. 

http://www.biggerpockets.com/renewsblog/2013/02/21/working-job-investing-real-estate-arthur-garcia/

Joe A.

Congratulations @Josh Johnson, that is awsome that you got your first property. You sound very excited about it! I hope it all goes well for you

All of this input is so awesome and appreciated ! @Walt Dexter neither house I am looking at has the washer or dryer in the basement. Does Anyone have experience moving the hookups for both of those appliances, with insight into the cost? Its looking like I'll take @Joe Cummings and @Matthew Paul advice and paint the space to give it a better appearance. Then use it for storage. Thanks everyone!

Matthew, Kelly, and Ned thanks for all the feedback. You have confirmed what I heard about the process. So are there any creative ways to take advantage of the space?

Fellow BPers,
I have been looking into older homes which have dug out, unfinished basements with low clearance. What can be done with this type of space? Is it too expensive to dig out more of the flooring to create clearance with the end goal of finishing the space? Thanks for any input.
Joe A.