All Forum Posts by: Jerry V.

Quote from @Scott E.:

Most experienced and sophisticated investors will look at these numbers and say that the margins are far too thin, and suggest that you walk away from this "deal." You're not accounting for things like vacancy and cap-ex, plus there doesn't sound like much room for rent growth.

With that being said, getting into this deal will allow you to live almost for free while you live there, and it will cash flow a bit when you move out which is impressive considering you're financing 96.5% of the deal and have to pay mortgage insurance.

If you feel strongly about the location, I say go for it. Aim to lower your interest rate and drop the mortgage insurance through a refinance at some point in the next 3-5 years. And in the meantime you'll just deal with tight margins. Shouldn't have much come up for cap-ex due to the units all sound recently renovated.

Scott, nice reply!  Question though.. can't you avoid the PMI by structuring 2 loans? I.e. 1 for 80% the other covering the 20% ?  Not trying to go off topic or the issue at hand, just a thought that occured to me. Thanks!

Hey Tyler, it may be a mundane point but ... isn't all that spelled out in the ownership papers as they were drawn up?  If not then, we (Roofing Co.) have usually gone by ... whichever unit has the leak, is the responsible party.  Of course, the Contractor doesn't care "who" pays for things! :P   Good luck!

Not even going to read through all the replies! lol  but sadly yes, rent increases have out-paced home value %'s.  Example:  a 1200-1400sq/ft house in the Dallas, TX area just rented out for $1,800/mth.  (Decent older home, all new appliances, redone inside/out, etc)  "I" thought that was extreme!  But ... seems to be common for our market here... :(

Efrem, there are many sites and comparison charts online to do this:  Metal vs Shingle roof?  :)   Either way, "workmanship" counts for a lot!  Especially in metal or specialized materials.  Where the materials are great, but the workmanship in putting it all together then becomes more important (because the materials are already a non-worry element).  But yes, OF COURSE the labor should always be a big consideration! lol

If I/we can help with any Roofing issues or questions in the future, just let me know!

Quote from @Scott Allen:

@Efrem Debesay  Metal roofs do not seem to be as common in the city but, they do last longer and are less likely to have any leaks with one. The only disadvantage I can think of is that they can be a bit noisy when it is raining really hard but at least you won't have a waterfall in the house. I'd compare prices of metal vs shingle to see which one actually cost more before picking which one to use.

Perhaps a bit noisy but, not if you have insulation under them (when installed). :)  Keep in mind, that YES they are more expensive AND, they may actually get small "dimples" in them from hail... it will show (in many not all) forms of metal roofs but that is NOT covered by insurance (cosmetic damage).  Many nuances to all this but ... consult with a local roofer that you TRUST for the details.

Ryan, In our market (Dallas, TX area), we're finding that many clients (residential) are getting notices for having "shingle" roofs older than 15yrs old.  It's kind of strange actually ... the insurance industry wanted the Roofing Industry to come up with longer lasting materials etc but now, they won't cover them if over xx age!? lolol   Now again, that is for "shingles."  If you have a metal, tiles, etc roof, then this all should not even be in question.

But I agree with others, find yourself a Broker, not an Agent.  Even if they are out of state, but still licensed to do business in your state, it works great!  you may be surprised at how much $ you'll save. :)

If I/we can help with any Roofing issues or questions in the future, do let us know!

Was typing a reply THEN scrolled down and saw that this is already done! lol
Basically yes... MOST things can be repaired.  That repair may call for replacing part of the roof around the problem, but most times not!  At 8 years old, a whole slope shouldn't need to be replaced... unless of course, they put Shingles on that flat roof!  Then yes, it should all be re-done, because you'll probably just have more problems later (even after fixing "this" one.)

You should really find a local roofing company that you can trust and send your business too.  Doesn't have to be a One man show, nor should it be a big company that you see on tv or hear on the radio a lot! :P  But someone (or company) that is "hands on,"  knows what they're doing, and is HONEST.  (and warranties their work!)

Message me/us if we can help with questions in the future. :)

Marina, a lot to sort through but in the end ... since you changed Ins companies, you only have since Jan any "storm" related coverage!  (the current ins co is only responsible for things that have happened since they have been insuring it, not before).  And for roofing, remember that they only pay to replace the roof generally for "moderate hail or severe wind damage."  So old age, wear/tear, or minor items (leaks) usually don't warrant them paying for a full roof replacement.

Best thing to do, is to find a good "local" roofing person/company, that can be trusted to tell you HONESTLY if there is hail damage (after storms), or is able to do the small repairs.  NOT a salesman, where others come behind them to do the work, but a "hands on" person that knows what they are doing, AND can do the work too! :)  Then IF he/they think that the roof warrants an ins claim, you can then make a claim and go that route.

FYI, most times, a PA (public adjuster) gets involved if/when a claim is denied (and there is still coverage from that ins co!) and you are sure that the claim is valid.  Or, if a claim is paid but seems to be severely low-balled (not that common anymore really).  PA's take a fee or % of the claim and will get it inflated for sure, but ... many (most?) of them are basically a Used Car Salesmen, in sheep's clothing of course. (here comes the hate mail! lolol)

Message me/us if you have more questions.  Happy to help.

You have the right thoughts but, keep in mind that your "handyman" probably doesn't have insurance.  And even if he/they do, probably doesn't cover them for being on the roof! lol  but, if that doesn't matter, and you trust him/them to do all the trades to satisfactually (is that a word!?) then, go for it!

A GC add's value by, being the "manager" on projects (usually larger or more complex ones) where multiple trades are involved, assuring Quality and scope of work (hopefully).  but yes, they will get a cut or % of the total bill of course.

Let me/us know if you have questions about the Roofing part of things! :)

Selina, we can help with any "roofing" issues, perhaps the exterior items as well.  Let us know if we be can of help to you/them!