All Forum Posts by: Judd Campbell

Welcome! Where do you have property? I have a duplex on Elkhorn Meadows, A townhome on Elm Ct. and I close on a 4plex in Frankfort this week.

good call @Walt Payne

@Walt Payne

Looking at the work required I may have to go that low.

My fear is that I am going to tie too much cash up in the property and then not be able to do a cash out refi on an investment property.

Short story: Assume all floor coverings and portions of the sub-floor will need replaced. Walls need light drywall work and all walls and ceiling will need 2 coats (Kilz & paint)

Details:

Water damage at the front door (needs a new front door and sub-floor)

Water damage in the kitchen where the sink is. Cabinets on the floor level are shot.

Range / Oven does not work.

Kitchen floor / sub-floor needs replaced.

Half bath needs wallpaper removed and a new exhaust fan

Full bath needs wallpaper removed and a new exhaust fan. Show drain runs very slow.

Needs a new wall framed out where bedrooms 2&3 were converted into one large room.

Door hardware needs adjusted throughout.

The unit I bought 2 down from this one appraised at 48k needing only ~3-5k worth of work.

Next step is estimating all of the repairs so that I can adjust my offer price accordingly.

it is on a crawlspace so the floor would come up to the baseboard then I would have to paint the floor with Killz to seal in the smell. same thing with the walls and even ceiling I would guess.

I did it in my duplex 3 years back and it has been fine so far. ( new pets are not peeing in the spots where the last animals did)

I meet the seller at the property Saturday morning to go over everything.

If buying at the right price anything can be a good deal!

Looked at a Townhouse. Here are the stats.

3 bed that had the 2 smaller bedrooms modified to make one large room. so currently a 2 bed 1.5 bath. Brick faced and ~1100 square ft.

The place needs a roof (~4k)

The place had cats and there is urine and poop in EVERY room. I nearly vomited when I walked in. 100% of the floors need replaced and the baseboard has poop smeared in it. It will need paint all around.

I have another unit that is the same floorplan but the proper 3 bed layout. it rents for $650 and I bought it from the same seller for 40k last month. It also needed a roof and about 1500 in work.

How high should I go on the next property? 28k assuming 12k of work? or less ?

great thoughts. My wife and I just pulled 90k out and will pay taxes and the penalty. we will have about 55k after the dust settles. We are buying a 4-plex and two townhomes.

They provide ~1700 / month positive cash flow. With the stock market at all time highs we decided to take our gains on some of the money and put it to something that is over 20% ROI at the 90k level !

do not regret it one bit.

I hear you and great topic. I have always been into cars and guns and do spend some money on them !

Hell, I keep thinking " if I sell my Porsche and buy two -4plex units that cash flow 1k on each one I can lease a new one instead !

It is a sickness.

I have a 98 F150 that I use for rental property duty but I have been caught by one tenant driving by in the Turbo just to check on things. I never park it there.

The water only has one meter going into the unit.

The news gets a little better because I got a quote on insurance at only 1400 and the taxes will adjust based on my lower purchase price and should drop to about 1600. Yes they are 2/1.

My other units have all utilities under the tenants name. This is uncommon.

Offer accepted at 106.5k and we close in ~4 weeks.

Property in Frankfort KY about 10 miles from my place. The neighborhood has a bunch (20+) 4-plex's and 8-plex's and I only saw 2 for rent signs. Checking Craig's List it appears that this is the bottom of the rent prices as it rents for 425 / 450.

The marketing is quite poor as it is the nicest place in the neighborhood and they are asking the lowest price! I feel I can increase rent to 500 without issue.

Kentucky State University is close by and 2 of the tenants are students.

is it on a low area of the property? maybe if you had a pipe burst and flood that area it would cause him to relocate. Can you have that area treated for bugs and fill the place with a fog?

how about starting a pig farm in that area?