All Forum Posts by: Logan Allec

One of my rentals is on septic, and I have had problems with roots down there.

I know very little about what piping and installation cost as I have never had to replace pipes in a property before.

I am curious if the BiggerPockets community believes my plumber's quote below is reasonable or what questions you would need answered to understand if this quote is reasonable.  I don't really have time to get multiple quotes since this needs to be fixed ASAP (tenant currently cannot shower as it is backed up).

He claims that putting "copper sulfite at the joints" will "eliminate any risk of roots growing around the new piping." Should I ask him if he will guarantee his work? Do plumbers typically do that? If so, what are typical terms? Any and all comments and thoughts welcome!

Thank you, BP Community!

Email from my plumber:

We dug up the septic tank and ran the machine in the drain clean out that was installed.  There are a lot of roots in the line again since 12/31/16 when you had it dug up and pumped.  I strongly suggest we dig up the 12 feet of pipe and replace it because evidently there are a couple spots big enough to where you will be having this problem every year with tree roots.

Total cost, parts and labor, is $2,500 to:

• Remove and stack the bricks (there are bricks laid over where the piping is) but will not reinstall them
• Dig up and replace 12' of 4" piping [he didn't mention what kind of piping] from clean out to septic
  
• Put copper sulfite at the joints to eliminate any risk of roots growing around new piping

@Spencer Willoughby Hmm...I would say that for such little capital invested the administrative costs of running a multi-member LLC will eat up into your returns quite a bit. It may be best to just invest and grow capital separately first and then come together when you're ready to purchase.

Also, be sure to start conversations with lenders now.  I imagine that it will be tough to get traditional financing as college students (presumably) without full-time jobs, so you'll have to find a lender who's on board with your goals and can make it happen.

Good luck!

Welcome, @James Hill III

SoCal can be a tough nut to crack for newbies.

A couple years ago I mailed out lots of letters to homeowners across LA County with no luck.

Then I tried rural Kern County and got a deal from a distressed homeowner in California City.

The margins were not as large as they would've been in LA or OC, but I was able to rent it out for 2 years before fixing it up and selling it for a decent gain.

Also, have you considered an owner-occupied small multifamily for your first deal?

You only need to put 3.5% down, so cashwise it won't get in the way of other real estate goals you may have.

My first deal was a 4-unit up I bought withFHA3.5% in Santa Clarita.

I lived for free (as opposed to paying rent) + enjoyed cash flow + built equity. It was a great investment (and still is).

Good luck!

@Yeng Hawj So the loan was in your name, but what about title?  Who's on title?

@Bryan Young KKOS Lawyers has an office in Utah.  Yes, they're lawyers, but they have CPAs in-house, and they're really top-notch.

@Naftali Tolibas Yes, you should keep track of your business and personal expenses separately.  And yes, there are plenty of business rewards credit cards out there.

@Mary Smith Glad it's been resolved!

@Joe Bruck @Charlotte Edwards

My opinion is that it's typically best to find a CPA in your home state who is knowledgeable about real estate investing and hopefully an investor him- or herself.

Joe, Basit Siddiqi is a CPA in Brooklyn.  Here is his profile: https://www.biggerpockets.com/users/BasitS#0 .  Also, Nicholas Aiola is another one in NY: https://www.biggerpockets.com/users/nickaiola

Charlotte, Daniel Hyman is a CPA in Wisconsin.  Probably a bit far from you drive-wise, but I'm sure he works remotely.  Here is his profile: https://www.biggerpockets.com/users/DanielH113#0

@Donna Arrogante Smart move.  Note that these kinds of properties are in very high demand in LA and oftentimes the good ones go to cash buyers.  I was looking back in 2015 and eventually had to broaden my search to the Santa Clarita area to finally land a 4-unit.  Good luck.

@Ali Boone nice