All Forum Posts by: James Judge

@Stephen Camardo I contacted my agent at State Farm and he was able to get a local insurance company to offer a 'builder's insurance'.  It was going to be $500 / 6 months, it is a 100K property.   Not sure if this helps. Good luck. 

@Account Closed , It is all electric. I am unsure of the insulation situation; the attic seem to have been insulated. Haven't been in the crawlspace yet. It's an old home, hell, the walls might not be insulated, so even if I were to spend 2-3k on a new, more efficient hvac (this one seems about 10 yrs old), it might just reduce the issue slightly.   Would know more after inspection on Monday, but going to speak with a Prop.Mang today about what he thinks about the utilities in that area and the ability to pay in the group of people we will be renting too.  Would be rehabbing the property in Nov/Dec so I would be covering those costs.....would definitely need to increase my estimates for rehab!! :) Thanks for your input.  

@Michael Jobe Hey....I figured out how to highlight your name!  LOL.....We are also off of 98, closer to Wake Forest though.  The place we are looking at is 10 min East of you, tougher neighborhood than Grove Park, that's for sure.  Anyway, thanks for the tips. 

Jim

@Andreas W. Hey there. LOL.... I was thinking that....but damn!   Its in East Durham, on Lathrop.  The woman from Duke Energy was very nice and actually gave me an average of another property that we have looked at, it's 400 sq ft smaller, but it was averaging $177. 

Hello, 

Have a question about a property that I am currently under contract with. I have been researching quite a bit on buying this property in Durham, NC while we are waiting on inspection next week.  And I'm not sure if I've just gotten a bit of nerves or is this an issue. The property is a 3 br, 2full bath, 1500 sq ft' sfh. It is on almost .3 acre in town. It is on a nice block in a questionable neighborhood ( Orange on the Trulia crime graph). Currently have it contracted for 58k, tax value is 97k. Sold in 2008 for 85k.  

I was planning on 20% down and financing at 4.875 the remaining.I have estimated a 8-9K rehab.This gives me some leeway and was leaning towards a property management company on this one, due to the area and being my first REI. After speaking with them, due to the neighborhood, they figured on a soft quote of 875 / month rent and 11-12% fee.

I was checking the utilities out and was a bit overwhelmed by the average electric bill, Central and forced HA; of 450 /m in 2013 and 376 currently with a winter month high of $600.   That seems quite high to me, for several reasons. But mainly that this property is going to garner the very lowest of the financial ladder, but not even the middle.   If their utilities are going to be that high, are they going to pay their rent?  Maybe I'm overthinking this. The utility has stated that the landlord is not responsible for past due bills. 

Anyway....this may have been more of a rant or my way of getting my thoughts out and written, which always helps me.  But any input would be greatly appreciated. Maybe this buy and hold really needs to be a resale........

Peace

@Michael Jobe

Thanks! I agree. We have driven all over town and have no problem driving and talking to people in East Durham. We have been hesitant to tell friends, most think we're a bit touched for hanging out there! LOL....   I did speak with a property management firm about costs for 'questionable' areas. One quoted 12% monthly on lower valued homes, (gave no reference), but knew the street and googled while we were speaking. I don't know if that's specific for the area, or just the cost on a home at under 100K value.   

Anyway, its already been educational reading these forums, thanks to everyone! 

Thank you guys.

Happy Friday!   New to BP and have learned a bunch from the articles and forums already! 46 y.o. medical professional and RN wife in Wake Forest, NC.  We have been looking for the last several months on a rehab, buy to hold, type property in Durham, NC; and have a studio apartment at our primary residence that we are preparing to list. 

Looking for cash flow and equity for the long term. We are enthusiastic about Durham, it is a growing urban area with potential. 

We are just under contract with a SFH and will be setting up an inspection as the next step.

It is in the city, moderate crime area, but rehabbing is happening all around the area. We have GC'd two homes ourselves and with family, are capable of most repairs/work  ourselves. 

Anyway....wanted to say Hi and thanks for the knowledge that is found in this website.

Peace.