All Forum Posts by: Kristofer Kohlstedt

@Jon Reed thanks for the response, Jon! Your comment has sparked some things in my mind. Very helpful! I appreciate it! I didn’t think about digging around the drive way and tunneling. Sorry for the delayed response.

situation: we have a duplex that is experiencing plumbing issues on the front unit. We have had three plumbers out to work on unclogging the pipes and we have also replaced a section of the pipes. Now, we are still having issues with the line getting clogged. We have had someone come out with a camera and he recommended we replace the remaining cast iron pipe from the front unit ($800-1600). We had another plumber come out and he recommended us replacing the mainline. the washout is under the driveway so the normal $3k mainline replacement is now $7-12k due to jackhammering the driveway. 

we have heard different things and we are seeking to be effective with our expenses as $7-12k is a pretty hefty expense that we would prefer not to pay if we don't have to. The other thing I began asking myself is well what is the opportunity cost of selling the duplex and putting the money into another investment. we have about $50k equity in the duplex as it sits now. we enjoy the cashflow ($500/mo) from the duplex but does the cashflow justify the cost? it would be over a year to recoup our investment in the mainline replacement and as a conservative person, I am also considering some additional expense to come up in the normal course of life and we need to expense something else. so I'd say 2-3 years before the property is profitable the way it operates now.

Open to hear thoughts and feedback on my approach as well as experience someone has had with rentals/plumbing. Thanks in advance.

Kris

Owner Finance Guidance -

We recently put our property on the market for owner financing.

We started thinking of all the nuances we will be tackling during this process; our note is due on the balloon soon and we will be refinancing. Additionally, the loan on the property is a joint loan with another property.

For guidance, the post is to reach out and ask if we have missed something or if anyone could share an experience they had. A particular concern is the loan product for the refinance, for cash flow reasons.

refinance the joint property loan into individual loans - individual loans must be able to pay off the existing loan.

Insurance - what are strategies implemented to make sure insurance is covered for us and the occupant?

Since we are refinancing what are some loan service products that you all have seen (because we do not want to get a loan that exceeds the years we commit to the people purchasing the home).

Property numbers - purchased for $37,500 5/2016

Owner finance- $53,000

Refinance amount - unknown (we think it’ll appraise for $42-45,000).