All Forum Posts by: Matthew Scott

I am in contract to purchase a duplex in Cincinnati, OH. The upper, 2 bed room, unit has already been remodeled and has fully functioning baseboard radiator heaters throughout the unit.

The bottom, 1 bedroom, unit needs almost a complete remodel. There are 5 baseboard radiator heaters throughout the unit and only 1 of them is still working. I am trying to decide if I should replace the 4 broken heaters in this unit or if I should just remove them all and go with a couple ductless heating units. I am assuming I would need one in the living room/kitchen area as well as one in the bedroom. I do not know much about the efficiency of these two different types of heating. Does anyone know which will be a cheaper fix but also which is better for long term maintenance? Will two ductless heating units be enough to heat a one bedroom unit that is around 700 square feet? 

Any advice on the best way to heat a rental is appreciated! 

Thanks,

Matt

Hey BP,

I am in contract to purchase a duplex in Cincinnati, OH that I will house hack. With the price I am getting at, rehab estimation and estimated ARV in mind I know that the numbers work for this property to be a long term cash flowing asset. For two to three years I will rent out the 2 bedroom unit while I live for basically nothing in the 1 bedroom unit.

The 2 bedroom is already remodeled and rented out but the bottom 1 bedroom unit was only halfway through remodeling when the owner fell sick and wanted to sell the place. My issue is that the only way I could afford to purchase this property was through a FHA loan. The seller has agreed to let me make improvements to the property before the bank sends an appraiser. My question is what specifically is required to meet the standards of an FHA loan?

Here is a description of the 1 bedroom unit that is in question:

Kitchen counters and old cabinets are there but the cabinets have no drawers or doors on them. The kitchen sink works fine. There are no appliances. The floor was removed and only the sub-floor remains (looks like plywood).

The living room looks great except that  there is still only the sub-floor. Laundry room is completely finished (including floor) but there are no appliances.

Bathroom is remodeled with floors,toilet and shower tub that all function perfectly fine but there is no vanity. 

Bedroom is remodeled except for the floor has been ripped up and yet again just the plywood looking sub-floor remains.

Basement has foundation cracks but I hired a professional structural engineer and the report says the house is not in any foundational trouble but gave suggestions to install carbon fiber strips as a preventive measure for the long term health of the building.

I have about a week or so to get into the property and get the unit up to a FHA appraiser's standards. The two things that I know for sure I need to do is install a vanity in the bathroom and provide some sort of closure to the kitchen cabinets. I have read that even installing little curtains in the cabinet coverings can pass. My biggest concern is what the standards for floors in an FHA approved home because putting in the durable pergo flooring that I plan to install once I own the place would be a large investment to make on a property I have not even closed on yet.

Can anyone give me advice on what I need to do to make sure the appraisal goes well? 

Thanks for your time,

Matt

Hello I am a new real estate investor in the Cincinnati area. I am in the process of purchasing my first duplex that I plan to live in one unit and rent out the other. I am working on creating a business that can fix/flip homes but I also plan to acquire a few more multi-family rental properties in the next few years. I am currently researching the best way to create a company to own and operate rental properties. 

The main reason for this post is I would like to connect with other small business owners of companies that own and operate multi-family rental properties in the Cincinnati area. I plan to do much of the maintenance and management myself, especially in the first years starting out. I will contract out projects that I can not handle.