All Forum Posts by: Josue Vargas

@Jay Hinrichs @Chris Sweeney @Vivek Khoche @Trinh Huynh

Keep in mind that this is a newly constructed house (its my understanding at least form the original post), not an old beaten house or a middle of the road house.  So from that, contractors and engineering firms commonly have to do inspections during construction, specially if the construction is financed from a bank (loan).  Most of the time the owner doesn't have any control of the inspections, because you are the last person to see any construction, unless you are actually very involve in the construction and oversight and knowledgeable enough to rise some red flags.  

Still, not the last thing you can do on foundation and other things that are affected from poor workmanship, errors and omissions, liquid damages, etc if its a new house under contract warranties from GC or Builder company.  If you feel you have some foundation issues from a new recently built house, I recommend you seek advice first form the engineer/inspector, then from an attorney to see what is included in these warranties (hopefully you have access to these someway).  Usually in new construction, you have some items under warranty (2-year is common) for minor stuff, and other warranties for other big items, such as structural, appliances, roof, etc.  Insurance will not cover for these warranty issues or construction error and omission.  

@Randy Stout

Without reading any comments after your post, it looks like you need about two years to pay-off your student loan, plus another year to save for downpayment and perhaps some extras for reserves.  

If you recently refinance at  4.5% interest rate on student loans, you will pay a lot of interest on the front.  Sadly, it may not equal a 12% on return on your investment, due to high interest rates paid on the front on your loan.  

I have students loans and while investing, that cash flow is moving towards the student loans, but I have not refinance any of them, and I'm on the last 3 years on each loan (10 year loans), so its mostly principal now.  We both work, properties are positive in cash flowing, so more income, and focusing on student loan right now...

On other words, If I were you, I will keep househacking your current property, until you can re-invest and do the same again, and pay your loans and save for downpayment.  

Hope this help.  

@Christopher Arter

Good tip about Google Street View.  Also, if you can, try Google Earth, there is a clock you can turn on and look at different dates, like a history back from, well, depends on the city.  But if you are looking to newer areas, you can see how construction has progressed.  Also you can do the street view 3D and everything, and you have a grasp on how steep or flat are the streets/areas also. 

Regarding books, I don't have one specific book for deal analysis.  But, I like the Book on Rental Property Investing by Brandon Turner and how he presents the different scenarios of investing and analysis.  Thanks for the recommendation on the book you are reading now, I'll take a look at it.  

@Trinh Huynh

Depends on your area, how big or small is the property, year of the property, if the property have pool, etc.  I believe you can find inspectors in your area in the BP marketplace and ask them for a quote.  What I an tell you is that I have paid between $425 - $575 in Texas.  Additional services such as termite, window, structural/foundation, and other specific inspections are typically not included with the basic inspection. 

All depends. 

I'll not take away 401k anything than your company is currently matching... its free money! Its a benefit from your employer (if your employer matches you something)

I'll wait, get my finances in a good standing, learn as much as you can, then go to several banks or lenders with capital to invest... we all likely have debts, its just a matter of investing debts--equity or bad business debts, like credit cards, cars, or something that do not likely appreciate with time. 

I would not recommend getting an equity loan on your personal house, if you have 40K in personal debt.  Get rid of that 40K debt, then leverage on your equity... Looks like you will be in a good shape within a very short time.  Why risk it that way? 

Glad to help, good luck and hopefully the new renters don't have issues with their doors...  I have rent a house before here in San Antonio when relocating with foundation issues.  I knew about it, but didn't care since its not my property.  

I'll keep an eye on that horizontal crack thought.  At least seal it with mortar or something on the sides of the house to avoid water intrusion (maybe once a year or so before winter). 

@Michael Ketchen  just for the future:

@Mike Garrett have great points there.  Development comes with a price, but well done, its rewarding.  

Take also consideration of city/county taxes, fees for construction or connection to utilities (sanitary, water, electrical, gas, communication, etc.), metering and all other secondary lines you need to include in your development for the two lots.  Subdivision (segregation) of the lot into two, if not done, also incur in surveying fees, deeds, paperwork, etc.  

@Kristopher Williams

I think @Trinh Huynh is talking about new construction SFH. So no flipping here.

That said, no sense to make a foundation inspection.  If the foundation have any cracks greater than 1/16" I would put that as a contingency in your contract if that crack will go further than 1/8" within a year!  Its a new house, and foundation slab will crack some, its just the beauty nature of concrete... Its only gets hard with time, and crack! 

You should do inspection anyways, type of a punch list, there will be like 100 line items the GC should repair before handling to you, of course these should be very minor, not at the scale of foundation repairs or anything like that... if its a new house. 

If you have cash low in the property, I'll say yeah, hold it.  

Have you heard before that with a single cent ($0.01), if you double its investment every single year, for 30 years, you will have $10,737,418?  Of course, it doesn't go that way often time, but you get the idea.  

Basically the pictures show a block wall, that said, no actual reinforced concrete.  The piers are concrete, assuming reinforced, but there is no actual mechanical bonding between the piers and the slab, or the wall, because its a block wall!

Blocks are usually not strong enough to carry the loads to a foundation peer or structure, they actually are not consider in any structural analysis.  They are like a void wall, or blocks made with some sort of sand and cement, hollow in the middle.  That type of blocks are usually known for compression strength as 1500 psi.. vs normal weak concrete at 3000 psi...

There is a say: "The link chain is as strong as its weakest link"...  Your block wall does not any good to the concrete piers or remedy, specially with all that gap between the pier and the slab.  

Do you see the horizontal cracks coming form the corner of the concrete pier a the top?  And diagonal cracks on blocks (like a stair case) coming from the bottom of the pier?  That means the pier is not moving anywhere, but the block structure is! 

I don't know where you got that information of block walls with the heavy piers on the side, but unless some mechanisms are in place, I honestly don't see it work.