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All Forum Posts by: Matt Ten

Matt Ten has started 9 posts and replied 26 times.

Post: Dirt Basement Floor Options?

Matt TenPosted
  • Tarrytown, NY
  • Posts 32
  • Votes 1

@Charles Stein I’m in a similar situation with a single family. The basement layout wouldn’t be livable anyway so I’m thinking leave the dirt floor but make it a bit more...appealing...somehow. What did you end up doing?

Post: NY or NJ mid/upper tier Supplier Recommendations

Matt TenPosted
  • Tarrytown, NY
  • Posts 32
  • Votes 1
Originally posted by @Alina Trigub:

@Matt Ten

Join the local REI clubs and network with the local investors to get the experts' recommendations you need.

That's a great idea :) Was hoping someone on the forum could also help in the interim.

Post: NY or NJ mid/upper tier Supplier Recommendations

Matt TenPosted
  • Tarrytown, NY
  • Posts 32
  • Votes 1

Really excited to get to work on my first renovation and flip in Westchester NY. Purchased a house from bank for $589K and need to turn it into an ARV $800K home. Have read all of J. Scott's work and am building out my supplier/materials team. Hoping someone could make some strong recommendations for the following material suppliers in the New York or New Jersey area:

- Granite or Quartz Countertops

- Appliance wholesalers (new stove, ovens, and kitchen appliances needed)

- Small job and capable handyman for odds and ends and installations of less complex items (this person probably needs to be in northern NY closer to house)

- Landscaping crew (not as much design needed, but good solid, cheap crew)

- Window and door supplier

Thanks so much in advance BiggerPockets community!

Post: Help interpret inspection results?

Matt TenPosted
  • Tarrytown, NY
  • Posts 32
  • Votes 1

I just received the results from an inspection on a house I closed on (REO). My first flip and I'm trying to interpret these results to make sure I budget correctly. Any initial thoughts and budget numbers you (experienced renovators) could share would be incredibly helpful!

Matt

Inspection Report: Well

After inspecting the plumbing and noted the disconnected pipe feeding the domestic water. I made sure the water storage drain was open and it was. I turned on the circuit breaker and attempted to run the well pump, to no avail. I recheck the circuit breaker and made sure that the disconnect was properly installed. And still no water. At which time I call for my partner to bring me a VOM to test for power. Once I determined we had a power issue I further investigated the problem. I found that there is a generator disconnect switch and it was switched to run the well on a generator and not the normal house current. Once I corrected the switch I again tested the well for water. I only ran the well pump long enough to determine it was running and until a small amount of water was discharged. I left the drain valve open to allow water to drain out and return itself to its winterized state.

Please note that the well pump runs and delivers water, no claim to actual ability of the well, or the pump to deliver a useable amount of water to support this house is being made. Dewinterizing and connecting of disconnected plumbing and repairing of any unknown leaks in the plumbing system would need to be done to determine usability.

Inspection Report: Septic

I first went to the town building department to see if they had a copy of the as built for the septic (attached). Fortunately they did and it aided in locating the septic tank and fields.

I uncovered the tank access port and looked inside. The influent level appeared to be normal; the baffles seemed to be in order. Due to the influent height it was hard to get a though inspection of the baffles. To get a better look inside tank and its baffles the tank would first need to be pumped, at which time the pump truck operator would do an inspection of the tank and both file and supply a copy of the form required by Westchester County health Department when tanks are pumped. The fields showed no signs of failure, however they have not been being used for some time and that area is quite over grown. It should be noted that the influent appeared to have what appeared to be clean water in it which may indicate that water is infiltrating the tank from outside sources.

To determine if the fields are functioning according to their design parameters both the plumbing and well would need to be dewinterized and large amounts of water would need to be run into the system. At this point dye testing could be used to test the fields.

Inspection Report: Plumbing

I inspected all of the exposed plumbing in the boiler room, water storage tank room, under the sinks in the kitchen and bathrooms (4), the toilets. Having dewinterized a number of houses in the past I was surprised that I did not notice any visible signs of frozen pipes. I did notice however that a water filter in the water tank storage room was broken, I assume from freezing. Also in the water tank storage room was a disconnected pipe that feeds the house its domestic water. (pictures attached for both). Also the cold water valve on the outdoor shower does not appear to be working. I should note that most faucets and drains were open as they remain today. I attempted to pressure test the plumbing, I first tested my attachment for leaks and then exposed the system to compressed air. I was unable to get a pressure build up in the system and explored for possible leaks, I had already isolated the disconnected pipe and filter so they were not the cause. I was able to detect air flow even in the upstairs bathrooms but no buildup of pressure. When the air compressor was not running I could hear bubbling in the hot water heater.

It might be advisable to replace the hot water heater and dewinterize the system to check for leaks that maybe hidden behind walls and ceilings. This would require reattaching the main water line in the water storage room as well.

Just closed on a property for $589,000 that's bank owned. been sitting on market for about a year. Upon first review with GC, systems look okay and we ranked the renovations required as Advanced Cosmetic category (J Scott).

- All walls need re-painting

- Re-do kitchen including countertop island

- Some basement finishes

- New appliances

- Sanding some floors

- Miscellaneous work 


Since it's a very short closing, I've scheduled Home Inspector, Septic Inspection/Cleaning, Water Well Inspector, Roof Inspector all for tomorrow. There's an old pool at the property too and i'm planning on scheduling someone to take a look at that.

Is there anything you think I'm missing here? Is there anything that you think is unnecessary? 

My numbers are as follows:

After Repair Value: $750,000

minus 

$589,000 for purchase

$7,500 inspection and buying closing costs

$50,000 renovation costs

$10,000 holding costs (mortgage + taxes will be $2,250 per month)

$37,500 broker sale commission

$5,000 closing costs at sale

$10,000 miscellaneous costs

Net Profit: $41,000

Any advice? Anything major I'm missing? Don't be shy! I need constructive feedback from you vets :)

Post: [Calc Review] Help me analyze this deal

Matt TenPosted
  • Tarrytown, NY
  • Posts 32
  • Votes 1

thanks for your response @Danielle Wolter

it's a condo, so that's why i estimated my repairs and capex being lower (accounted for by the high HOA fees). Also, those are my property manager's prices so i'm okay on that point.

But I agree with your other points. I was going more for a buy and hold on this one, knowing that the area is good and that I think the property is undervalued. 

Appreciate your input!

Matt

Post: [Calc Review] Help me analyze this deal

Matt TenPosted
  • Tarrytown, NY
  • Posts 32
  • Votes 1

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Post: [Calc Review] Help me analyze this deal

Matt TenPosted
  • Tarrytown, NY
  • Posts 32
  • Votes 1

@Thomas Hundtoft that’s a good idea. The more I think about this property the more I think it may be better as a flip. If purchased at 420k, I think for 100-125k I could turn this into a 600k property in about 6-9 months. What’s killing the numbers on a rental for me is:

- risk that it won’t get 4250 per month rent

- risk that capex expands even with some new systems

- 15k per year taxes

- risk of higher vacancy rate than I’ve anticipated

Post: [Calc Review] Help me analyze this deal

Matt TenPosted
  • Tarrytown, NY
  • Posts 32
  • Votes 1

@Joe P. Great point. For my first investment in trying to stick closer to home and something a bit less risky. Which is why I’m aiming to convert a B into a B+. But maybe this just doesn’t make sense.

Post: [Calc Review] Help me analyze this deal

Matt TenPosted
  • Tarrytown, NY
  • Posts 32
  • Votes 1

@Pavel Bennett good questions. Not much rental data in Zillow for the area but I feel confident based on my Broker’s experience within the area that 4250 is achievable.

It’s an estate so I’m really going through the exercise of seeing what my “best and final offer” should be-trying to take emotion out of it. Even if they don’t drop to that price (I have put in the offer at 420k), this exercise is sort of getting me more comfortable with my maths.