All Forum Posts by: Kevin M Finley

As someone who's purchased a number of hoarder houses, my offer is going to come A LOT lower if it comes with all of the items inside it. I would call around locally to junk removal and cleanout companies. Some of them are going to be ridiculous, but there's a good chance you will find a crew willing to load dumpsters for $500 per. You can coordinate roll-off deliveries remotely as well. 

There's a huge variance in what people charge for cleanouts, however... cleaned out is cleaned out, a dumpster filled is a dumpster filled. It's probably not a get what you pay for situation. 

Once cleaned out, if you want a quick sale, you can work with a LOCAL wholesaler and life will be easier if they have full access to the empty property. You may also be able to list it, and depending on your local market, still get more than you probably deserve lol. 

Just my .02. Managing cleanout crews is an easy way to add value and get top dollar. 

I personally wouldn't attempt doing my own roof. 1300sf with a modest pitch should be roughly 16 square. 

You should be looking at about $300/sq for tearoff and shingle and add $100 per sheet for sheathing replaced and $5/LF for fascia. 

Ie when you're getting quotes, if they're completely re-sheathing, anything over $6500-7000 is a con artist, and anyone $5k or below likely doesn't know what they're doing. Don't listen to bitching about material prices either. Materials make up 30% of the job and have only gone up around 11% in the last two years. Sheathing is a different story. 

Hope that helps ballpark it. 

A-1 appliance service in Racine is who I used for the last few rental services. Free delivery and install. Prices seem high, but still less than new (if you can find new). 

They dropped a non-working fridge in March and had it swapped out the same day for a working one with zero hassle on my part. That's important to me. 

 I cannot find this group on facebook 

Closing shortly at 6.73. Not really a concern to me. TBH if the asset didn't have an extra $60/month or so in fluff cash flow I probably shouldn't have bought it to begin with. Rents will increase and it won't matter in 3-4 years anyway. Or the fed will jump start a recession, which seems to be the plan, and rates will have to correct the other day within 3 years. Refi then.

I'm also looking forward to people running slim rentals to be pushed out by interest rates. It would be nice to not have to work so hard for real investments again. 

The only issue that I am having is the lack of information available to appraisers, causing them to use published rental rates that may not actually be comparable properties. I just had one come back with a market rent estimate of $1500 despite the property being rented at $2000. As a result it cut into my cash-out a touch since the lender used the lower of the two. 

I have not myself, nor have I kept anything I've built, but I am in the process of building a 4-unit building that somebody will likely be purchasing as a rental. 

A few of my new builds have gotten offers from rental property investors, but they have not been the most competitive. 

It makes sense for some. While you may pay a premium upfront, you will likely also be getting premium rents and premium tenants, potentially corporate housed. Your maintenance and turnover expense should be minimized for at least the first 5-10 years, inflating cash flow while the property value increases. 

Additionally, there is a lot of 1031 exchange money floating around. These people sold another rental for a reason... and it may have been hassle and maintenance. 1031 money seems more likely to dive into a new build rental, and potentially overpay, just to avoid paying those CG taxes they may be subject to if their 1031 period lapses. 

Honestly there are no ways to get accurate enough numbers for your purposes without having house plans ready to go. The plans will change the building costs drastically. 

I switched from flipping houses to building on city pre-developed lots in my area. The private money financing portion is very similar and it was good experience. After doing a few of those I'm about halfway through my first "development" deal that is still city parcels, but involved converting a single commercial site into 6 single family sites and connecting sewer water, etc. 

I'm working on building my own custom home of my own design on an atypical lot and it's been headache after headache. Completely different process than the easy city deals. 

I'm also working on developing an area between two subdivisions that involves redoing a lot of storm and sanitary sewer, water, bike paths, sidewalks, etc and installing a new road and light posts etc. It's a COMPLETELY different process as well and has also been a learning experience even in the design and approval stages. 

I say this because if I had tried to attempt either my own home or a true development prior to starting small with single easy builds, my chance of success would assuredly be significantly lower. 

I have a Private Lending Proposal Document. It lays out the property information, deal information, scope of work and itemized budget per category, timeline, and then ultimately the terms and the estimated return the lender is set to receive. It also lays out a worst case scenario that identifies the foreclosure equity the lender would then have in the property. 

Clear and concise data is important. Show your comparables and your ARV. Show an itemized budget. Show estimated timelines etc. Show pictures. My proposal document is about 6 pages all said and now that I've developed a template only takes about 15minutes to put together.

Imagine it's your money. What is going through your mind and what questions would you have? Answer those questions. 

Please do- it’ll save effort in calling over and over again. Thank you! 

I’m not following the perceived higher risk of cash out vs standard refi to be honest. If someone pays for a rental in cash and wants to finance it later, how is the risk higher than a deal with a private or hard money loan on it? It’s still a percentage of value... confusing times in the lending world