All Forum Posts by: Jeff V.

I just did a full gut rehab and my contractor had a crew of 3 plus himself and charged 400 per day.  I paid for materials at cost.

Labor could more or less expensive in your area so not sure if this helps.

Just be aware that most require you to be an accredited investor on the investment side.

Becoming an accredited investor is a bit more involved than just signing up for an account on the site.

'Accredited Investor'

In order for an individual to qualify as an accredited investor, he or she must accomplish at least one of the following:

1) earn an individual income of more than $200,000 per year, or a joint income of $300,000, in each of the last two years and expect to reasonably maintain the same level of income.

2) have a net worth exceeding $1 million, either individually or jointly with his or her spouse.

Good Luck

This may be a bit cheesey  but Robert Kiyosaki has a board game called Cashflow.  The whole purpose is to build your investments up until their income surpasses your expenses and you graduate from the rat race.

My wife and I have played a few times and it really opened up her mindset to see real estate as a viable financial vehicle.

I could never get her to read all of the books ect she just wasn't interested. 

I finally told her to just trust that I will maintain a healthy emergency fund and not over extend our finances.  I think after all of that it boiled down to her being afraid I was getting in over my head.  After all she had no idea how many hours I have spent studying planning saving ect to get myself in a position and mind set to even be ready to start investing.

It will take time and patience to win them over.

Good Luck

Smart Move from TransUnion.

No annual or monthly fees.

Does credit check, criminal background,  and eviction check for all 50 states. 

You can setup so that you pay per use and charge tenants application fees slightly higher and make a small profit,  Or set up so that the tenant pays the fee directly to the service and therefore it's free to you.  Either way it's charged on a per use basis. 

They even have a new feature where they will collect your rent and report to the credit bureau, for a fee of course.

The process is very quick. In your management back end you put your properties in.  Then put in your applicants email for whichever property they are applying for.  The system emails them a link to an online form, which they fill out basic information and put in their payment details.  You get a confirmation email in about 10 mins with very detailed credit report, criminal background and eviction checks for all 50 states.  It even offers a suggestion and summary on whether it is recommended that you rent to them.

Very good tool.  You can't beat it and it's free to you if you set it up where tenant pays directly to service. 

Hope that helps. 

We purchased the property October 2014.  We didn't start rehab until Feb 2015.  It was listed on the books as an asset with value of the purchase price In 2014.

Basically my business  partner contributed the property I matched his contribution with cash and financed the rest.

One idea is to set the fan up on a motion switch...  That way you can be sure when they enter or exit the bathroom the fan runs for at least a few minutes before cutting off.  That would remove the excess moisture.

Second, vent to the outside...  Looks like mold is in the transition between sheetrock and tile.  Curious if its also in the attic and growing through.  Maybe those transitions are not sealed up good.  Can't see in the pic very well to be sure.

Third, if you didn't use the moisture resistant sheetrock, the sheetrock could be holding moisture.

Fourth, Is there an A/C vent in that bathroom?  Not sure if it would matter but I know the A/C circulating air removes moisture and humidity from the air as well...

I'm no expert, but these would be good starting points and options to investigate in my opinion. 

Thanks,

Jeff

@Daniel Savage 

I have heard of taking say 5 or more properties and rolling them into a portfolio loan that covers all 5.  In all cases though I think there was a minimum of like $500k for the loan value before they would consider it.  

I'm sure it's possible for 2 but like @Scott Trench said, it's probably more hassle than its worth trying to get it done for only 2.  Also very few lenders will do the portfolio loans that I mentioned above, they are kind of a specialized niche market.

Good Luck.  I would stick with 1 mortgage per property until you have a sizable portfolio.  Just my 2 cents.

I'm by no means an expert but just had a recent plumbing leak for the same reason, old galvanized.

Statistically speaking you have had 4 leaks in the short time that you have owned it.  I'm guessing that the galvanized is the oldest and if it were me I would have it replaced before the tenants move in.

I will be doing the same on my personal residence soon, I've had multiple plumbing issues lately.

My plumber said they now replace galvanized with pex and run through the attic so it takes about a day to redo a house possibly 2 depending on size.

It's one of those things...  you know its a problem and it's currently vacant.  May as well get it fixed while you can before any more damage occurs.

Just my opinion.  

@Frank B.

1. What are your expected costs for insurance, property tax, etc?  

      $5645 Annual Expenses (Insurance, Taxes, Maintenance, Admin Fees, PM)

2. Is your financing on ARV? If so, what is the seasoning period? What are your financing terms?

   No Seasoning, Portfolio Lender does not require a seasoning period.  Looking for final financing for 15 - 20 yr roughly 4% to 4.5%

3. Is cash on cash your only criteria? If your figures are right and you can get the house cheap (like 55k), you could refi on ARV and get almost all of your cash back, depending on your terms. In that case it would be easy to get 20% cash on cash, but that that doesn't mean your cash flow will be good. If your cash in the deal is $2,500, then 20% cash on cash is only ~$40/mo cash flow. If cash flow is your only goal, that is pretty slim. You may also want to set a goal in terms of $.

You are correct I also have a minimum of $200 Cashflow per unit. Mainly looking to have this unit rented out with a positive cashflow, pay off LOC with traditional long term financing and add the property's equity into the existing LOC to allow for more purchasing power on the next deal.

4. How certain are you about the rehab cost and rents?  

   Rehab costs are over estimated...  For a rental it should be around 15k rehab...  for a flip it should be around $30k...  

   Rents for that neighborhood are $1200 - $1300 I'm fairly certain there would be no issues renting for $1200.  For this scenario lets say its guaranteed.

I've seen good reviews for this company.  I'm not affiliated with them at all, just answering the posed question.

National Real Estate Insurance Group | Commercial Real ...