All Forum Posts by: Justin Escajeda

Is this a stacked duplex or side by side?  What kind of ceiling damage is it - water induced? I don't know the market your dealing with, and I am a huge cheap skate, so with me (take with grain of salt), Id be hesitant paying $67k for a duplex in a lower class area.  Where im from (Pittsburgh), I think we just pay a lot less for real estate.  For instance, I paid $44k for a duplex in a similar area, turnkey. 

Ive done a lot of rehab work and am a contractor, and I think the condition your describing, $10,000 sounds like it might be less than you think.  Hows the roof and foundation??  When your analyzing property first always look up and down (two essential and most expensive parts of a house particulary the foundation). 

Are you tenants paying all utilities?? Are there separate meters??  Just some things to think about.  Then again, don't over think it, if it feels right just do it.

That's good what you guys did, A lot of work pays off sometimes if you can afford it.  My first rental was in a poor area, nothing to write home about, lower to lower middle class.  I was  very confident about turning the rental into something it could not be at the current time.  So Im glad your rehab paid off.

One thing I that I am adamant about is keeping things in the realm of being "rent ready", I do not change places into where I would want to live.  I make the place clean, safe, and BARE BONES BASIC.  If someone doesn't want to live in one of my units, Oh well, because there is a line of people out there who do. 

Now this is my philosophy here in Pittsburgh, but I am sure it is true in other parts of the country.  Once you start getting into the double digits of rentals, get into a pattern of how you like your places to be.  I buy all the same tile, carpet, toilets, etc.  I know exactly what product im going to buy and how much it costs (and to install). 

I am not saying you cannot have an empire of pristine rentals, you can do anything you put your mind to, but so your not constantly spending more time and money, take the rentals on a case by case basis.  For every rental unit, there is a renter that will live there. Hope this helps, best of luck man. 

Agree with James as well.  If I buy a place with or without a tenant already in it, and it does not cash flow right off the bat by either putting a new tenant in or increasing original rent, then its not worth it.  I do not claim to know the value of a property years from now, and I certainly don't bank on capitalizing off of future appreciation.  They say drug addicts consistently chase instant gratification.  I use that metaphor with in regards to my buy and hold business.  After any rehab, I require cash flow. 

Sorry to hear about termites, also sorry to hear that you have to do this work with tenants living there.  Since you obviously holding this long term, the best, cheapest route to go (in my opinion) is rubber.  Did you say how many ft^2 the roof area is?  Im from Pittsburgh, so we may need things that you do not in south Florida. 

Sounds like you need all new material (hopefully your joists are fine), I use 3/4" plywood standard or maybe tongue and groove OSB.  I put 1" isofoam (for insulation) and anchor it to wood (8"-16" on centers), Then the roofing adhesive (there is a lot of brands and cant remember what Ive used off the top of my head), but its expensive like $150-$200/5gal.  Act fast with it esp in hot Florida sun!  A standard 10X50 roll I pay like $275 for.  In my experience this is the fastest and cheapest way to go.  Im not a roofer, but I can lay rubber roofs on my rentals, and they're still holding.

JOIN a local RE club(s), a lot of the time most clubs will have a point in the meeting where member can stand in front of the whole room and advertise their deals, sell to the masses.  Are you in a position to take title of property?  If there is only 5k in rehab, you do not have a lot to do.  Ill be honest though, when someone gives me a small number in multiples of 5 (for repair estimate), I am weary.  Make sure your accurately estimating repairs, round up.  Id say take title if you can, maybe even tell sellers your having a hard time finding buyer, and you may buy it yourself, but try to get a few more dollars knocked off. 

I am not familiar with Missouri Laws, but in PA, a late fee will actually not hold up in court.  Meaning we as landlords cannot apply them to their rent payments if late.  I learned this  years ago in a RE clas I took at local community college.  What we can do is state in our lease that "if you pay before the fifth day of the month it is one price (ex: $600), and if its after your rent is $650.  Advertise the unit for the for a higher rent than you actually want, that way is they pay on time you get what you really wanted ($600), and if theyre late you get a $50 addition (i.e. late fee).  This is legit in PA.  That explanation was scattered sorry, but hope you understand.   

Welcome to the community Lisa, you've stumbled on one of the greatest sources of reference for RE.  This site has so much information and so many members willing to offer their experience and opinion.  Anytime I have a question  (and theres been a lot of times where I had questions), I had never once been left without a response.  Welcome again.

That sucks man that the city Is saying that.  Rezoning for a mobile home community is difficult,   and to be honest , I don't know anyone who has.  Hopefully someone chimes in with some experience, strength and hope on that subject.

Did you pay 40k for 5 mh's?  Are the single or double wide?  Are they new, never lived in or used?

You DO NOT want to have to ever move a mobile home is you don not have to.  I buy these a fair amount, and have a good relationship with the mover and still pay $1,700-2,000 per move and set.  If you have double wides, you have 10 moves, not 5. 

Did you already buy these homes?

If not, Id maybe pass man...

1.) That's a lot of jack for mobile homes, I can negotiate  a rent ready home from Free-$4000.  People are willing to give those things away if you offer moving it for them.  Single-wides that is. 

2.) There are mh deals everywhere, more so than houses in my opinion.  If im buying 5 mh's, and they are already set somewhere that's one thing, but if I have to move them and do not have anywhere acceptable for them to generate money, then screw it - id let it go.

Sorry, not trying to deter you, do what you feel is right, I was just passing on my opinion.

In my opinion, I think you can get away with different ratios (tanks:units) on a case by case basis. My duplexes have 1 40gal tank per unit (all 2br), SFH's I use 1 40gal, and in my apartments I use 1 40gal per 2 units. I always buy electric (that I individually meter), 40 gal whirlpools are like $210 (in Pittsburgh at least), and honestly is someone likes where they live and their one complaint is that sometimes they run out of hot water too fast, they may sing the blues a bit, but def not a reason to move. Is there a mandatory amount of tanks you need per units, I honestly do not know, but that is just how I do it.

Id agree with Karen here, in all of my units, smoking is absolutely prohibited.  Its always been like that for me even when I was a smoker.  Cigarette smoke gets in everything, very difficult to get rid of that stench, its like damn cats.  Plus, cigarette burn, fire hazard, etc.  Cover yourself and make it non-smoking, and if the tenant chooses to disobey the rule, you keep their security deposit after they leave.