All Forum Posts by: Leroy Wallace Jr

I am house hacking/BRRRR'ing a duplex, and I am nearing the end of my Rehab. I used a 203k loan for this purchase and rehab of this property. This is my first ever deal, and I am looking to BRRRR another property. I have added 140-160k in equity to the property, however I cannot refinance to get any of this until early February 2020 due to my loan docs (FHA). I have found a few other properties that I would love to purchase and BRRRR, but I do not have the capital. What should my next play be? Should I keep squirling away money? HELOC? Hard money scares me a bit, and it certainly makes the deals tighter. Any and all advice would be greatly appreciated!

@Jeannette C  Thank you for all of the tips!!  We are leaving the cabinets as they are, and the tile has been ripped out.  I have started to lay some new tile!

The property is basically two separate house joined by an enclosed breezeway. So the house that I am looking at putting this in on is a 2100sf 3br/2ba. Comparable rents in the area are about 2400ish, I am looking to rent it for 2200-2300. Below are pictures of the kitchen.

Thank you all for the advice!

@Jeannette C  any advice on design would be great!  I will post the pics tonight!

@Account Closed this is the struggle I am having with it.  I believe that I may get about $100/month more, and possibly attract a higher quality tenant.   However, I am doing about 30k in renovations to the other unit, and I have 15k in reserves.  I just don't want to move forward on renovating the kitchen and possibly run into issues and end up out of my reserves.

I just bought a 2-family, and I am house hacking/BRRR. I found myself not wanting to take a picture of the kitchen when I was going to make my listing, so I figured that I should update it if I didn't think that it was up to snuff. I am also looking to add value to the house to get some more money out of it when I refinance out of my FHA loan.

I am planning on painting the cabinets, a new countertop, painting the cabinets, and replacing the sink.  It is going to cost about 4k for a Quartz countertop, or about 1.3k-1.5k for the formica.  I am hoping to get a long term tenant into this side of the property, as it is a 3br/2ba.  

I am torn on which countertop to put in.  I had about 15k in reserves going into this, and it looks like the kitchen is going to eat up between 6-8k.  The kitchen is functional left as is, but I feel that updating it would attract a higher end tenant.  Any advice would be greatly appreciated!

@Sean Lambert I did get a professional inspection done, but it was still missed...  I thought I had crossed my Ts and dotted my I's..

@Jay Hinrichs That has more or less been the case with the closing attorneys.  

I wish I could say that this has progressed some, but we seem to be at a somewhat of a stalemate.  The seller is claiming to never have known of the issue, and that it "must have been the previous tenant."  I am SUPER skeptical of this since there appears to have been some attempts at reflashing that area of the roof; along with the above photo.  They are also saying that they will not pay to have it fixed or do anything towards it, and they have now gone to the house and removed the keys from the lock box.  This just seems like strange behavior to me.  

So, at this point I am not quite sure what is happening.  I still want the property, and this isn't going to kill my profits.  This just leaves me feeling very uneasy as to whatever else could be potentially wrong with the property.

I appreciate everybody's feedback on this!  It has definitely helped me.  This is all a learning process.

@Matthew Porcaro

No it was not either. It was an as is offer, but they took efforts to hide the issue. They even painted the water stain. I also explicitly asked about the roof and was told it was in good condition and only 9 years old. I have told my attorney, and he is working on it now.

I am currently in the process of purchasing a Duplex with an FHA 203k limited loan. I am house hacking the property, and I am less than two weeks out from the closing date. When purchasing the property I decided to use the listing agent as a dual agent in the hopes of getting a better deal. I have gotten all of my bids in and I am at the top of my rehab budget in regards to the loan. Everything had seemed to be in order with the house. Until today... I was allowed to enter the property to take some photos for my rental listing. When I got walked through the dining room I noticed a LARGE water stain that had not been there previously. I would like to note that when I did my initial walk through I did notice that the seller had recently painted the ceilings, but didn't think much of it at the time... Well, after investigating, there are some drawers recessed into the wall on the second floor that I was able to remove and look behind the wall. That is when I found a very prominent leak in the roof. Not only was the roof leaking, but there were trash barrel lids under the spot that was leaking, apparently in the hopes of catching the water.

My question is how do I handle this?  It was never listed as a disclosed item.  I had explicitly asked about the age and health of the roof, and I was told that it was fully replaced 9 years ago and in good condition.  To be fair, from the outside you can't tell that there is anything wrong.  Do I have any recourse here?  I was thinking about getting cash back at close.  I'm not sure how much yet, since there is a fair amount of work to be done to the roof and fixing all of the water damage.  Also, I am not even sure that this is allowed with the 203k loan...  Do I ask for more than it will cost to fix incase there is more damage than I can see currently, holding costs, etc...??  Any advice/opinions are more than appreciated!

I have attached the picture of the lids as well.