All Forum Posts by: Mike McGee

I just closed on a SFR in Davenport, need contractors. So far I've had several no-shows and a couple of crazy-high bids. I need high-quality subs, or a GC who doesn't overcharge. Need to renovate 1.5 bathrooms, replace a kitchen countertop, interior & exterior paint, install vinyl plank flooring, new roof, demo/remove a sub-standard addition, etc, etc.

They are split levels, so you enter between the floors. Stairs are required to go up or down. If I can get the property for what I want to pay, and get it fully rented, the cap will be substantially higher than 11.

Interior looks sharp and updated. Physically in good condition, inside and out. Obviously haven’t had an inspection yet, but roof is fairly new, HVAC, etc. Parking is ample. Hope to find out soon from our agent whether or not the neighbor buildings are fully rented. 

@Zach Quick One building is owned by a chiropractor who runs his business there. The other is owned by a local investor. My agent is talking with him to get info. Tenants there include a massage therapist and a State Farm agent.

@Brian Schmelzlen I'm happy with the type of businesses currently leasing this building and in the buildings next door. My agent has a client who is looking for office space in the area and thought he might be interested in this building. I told him to show him the property and see if he's still interested after seeing it. If he's not put off by the looks and if I confirm the neighboring buildings are fully leased, that should be enough evidence to persuade the wife!

@Katie Neason Our agent is checking with the owners of the other two buildings to find out if they're full. Of the three existing leases, one has been there since Jan 2015, once since Feb 2016 and once since Sep 2017. All renew at some point this year. I would make the purchase contingent on those leases being renewed. 

@Ronald Rohde That thought has crossed my mine, though the other owners haven't indicated an interest to sell. Might be something I could do over time. Once I own them all I could give them all facelifts and maybe command more in rent.

Yeah, I plan to offer substantially less than list to due to the vacancies. If I get it for what I want it has good upside potential, if it's not so ugly that businesses won't rent it!

I'm considering buying this 5-unit office building. It's in a stable, mid-sized Midwestern market with a low (5-ish%) office vacancy rate. Currently 3 of the 5 units are rented. One of the others was occupied by the owner's business, who has apparently moved out of state.  It's basically breakeven with 3 of 5 units rented. One more tenant and it's cash flow positive. If fully rented, it would cash flow well and would be about an 11% cap rate at list price.

Only problem is, my wife thinks it's too ugly. I think it's not that bad, but I've run it by others and everyone seems to agree: it's ugly.

I think if we just removed the mansard roof and painted over the outdated colors (including brick), it would look much better. However, the building is situated between two other buildings which are virtually identical. She thinks it would look odd if ours was updated and the others were not. 

What do you guys & gals think? Open to opinions and suggestions. Thanks!

I see this thread is a couple of years old; are you guys still active in QC investing? I'm under contract on a house in Davenport and need to renovate before renting it out. Looking for some recommendations on contractors.

@Michael Pease, looks like you're not 100% happy with many of the contractors you posted. Have you come across any new ones you can recommend since this post?

@Matt Holmer, are you still happy with the ones you recommended? I noticed the Mahieu Electric is a dead link, are they still in business? BPC Finishing looks promising.

I will need the following contractors:

Roofer

Plumber

Flooring installer (I typically use Vinyl Plank flooring)

Electrician

Carpenter

General handyman 

Thanks!

No, not a Christian organization and not refugees. Sounds like you’re talking about something else entirely. 

We received an inquiry on one of our rental properties from an agent. He said he represented a non-profit organization who is partnered with the state to provide housing for homeless teens. The state would pay the rent, commit to a 3-year lease and cover any repairs under $500. There would be up to 2 teens per bedrooms (so 6 teens in a 3br house), and an adult social worker would be there to supervise 24/7. 

Has anyone ever rented to such a program? Thoughts on pros/cons? Six teens is a lot in one house, but they would have full-time adult supervision. This is through the Department of Family & Children Services, not Dept of Corrections. So sounds like abandoned kids, not juvenile criminals.