All Forum Posts by: Melissa Kaatman-Boettge

Thanks for the insights! We extended our inspection period so that we could get bids on fixing the issues that came up in the inspection. Problems sure do get expensive fast! We still really want the property, so we are hoping that the owner will fix/credit us for some things. 

We had someone come give us an estimate for:

Piering the balcony, $14k for 6 piers, and to reslab the concrete. 

Update all windows $16k with install 

Spot tuckpointing and brickwork $18k 

Overall the property looks really nice, which is why we were surprised when the inspection came back with so many issues. 2 of the units are already rented out, and the 3rd recently became vacant (looks like it was an eviction). 

2 of the units should pay for the mortgage and monthly expenses. If we have to repair the above-mentioned things immediately, that's a good 2+ years that we wouldn't make a profit. Obviously, the property value would increase, but is that worth it? 

All of these things could possibly be put off, but they will still be an expense at some point, so isn't it better to do them sooner rather than later so they don't cause other issues? 

We're also trying to figure out If this property was in near perfect shape without these issues how much would it be worth? Another similar property went for 190k over the summer, and that's been the highest comparison, so after all repairs, we do not want to spend over that. The issue is the current owner paid 170k for the property in 2010, so it's likely she will not want to go below that. 

I just hate the fact that we've now paid $1,200 in inspection costs, and we might have to walk away. I know that's all part of investing, but for a new investor, that's rough! 

I may need to write out Saint Louis for this to be tagged appropriately. 

Hello BP community! 

I'm hoping to get advice from some more experienced STL investors about a property we are currently under contract with. 

We are under contract for $176k on a 4 unit, each unit rents at $600/month. The property is in Tower Grove South near Civil Life. We plan to live in one of the units and rent out our current home in Maplewood. 

Overall the deal looked pretty good to us, good price and we like the location. The problem is yesterday we had the inspection, and more came up than we were hoping for. Some of the issues we already knew about, and some things were unexpected. 

Things we'll have to fix: 

The balcony is pulling away from the building, so we'll have to have an engineer come out and we'll probably need piering. 

On the sewer lateral, one of the lines had 2 breaks, but it was on the city side. The other line had a blockage, so he was unable to see very far. 

The wall in one of the upper units had slight water damage, due to the window sill being rotted out. 

All of the windows are older, some are painted shut, some do not lock. (wondering how soon we will need to update these?)

There are some areas that will need tuckpointing. (could be another culprit of the water damage) 

2 of the AC units are not cooling properly (might just need freon).

On the bright side, the inspector said the roof looks great! 

So, what do you think, still worth it, or could we find a better deal? 

Welcome to BP! I also live in STL, and we are under contract for our first rental property. 

Thanks for the encouragement Mindy!

Hi Brendon,

We terminated the contract after the second walk thru. Our offer was too high for the work that needed to be done. There were just too many sketchy aspects, that made it a risky investment. We would of had to put in a decent amount to even get the rents we wanted. We also think that the rent rolls might have been fabricated, since they ended at a future date, but 3 of the units were vacant, and the rents were much higher than I'd expect to get. So, we're back to searching for a deal! 

We started with a realtor, who's a great guy, but he does not own any rental properties, so we are thinking it would be advantages for us to find someone with experience especially since this will be our first deal. 

Thank you Jason and Brendon! 

Yes, we can walk away after the inspection, if there's more work needed than expected. 

I found and edited a checklist for our walk through tonight, so I can make sure I see any red flags in advance. It helps to hear experienced investors say a gravel basement would not send them running! 

Hello, 

We are under contract for $120,000 for a 4 unit, expecting $650/unit in rent. 

I have a few questions for people with experience in home repairs. The units have been mostly rehabbed, but there are a few things we'll have to fix. All 4 furnaces look like they need to be updated. My main question is about the basement, about a quarter of it had concrete, but the rest was gravel. Is this cause for concern? We didn't smell mold, and the only moisture was coming from a small leak in the water heater. 

We are doing a full walk through tonight, and we'll have an inspector take a look Thursday am. If there are any huge issues with a gravel basement, I would like to find out now, as we could get out of the contract before we pay the inspection fees. 

Any info or advice is helpful, as this is our first investment property! 

Thank you!