All Forum Posts by: Molly Hane

Category

Description

Thoughts

couldnt figure out how to delete this column....

House

Duplex:

• 1900sq 3bd, 3ba house
• 800 sqft 1bd, 1ba apt

Yr built: 1960

Tried to sell for $225k since Apr

• - Potential to force value though renovations
• - no upgrades made since 1960
• - all required make-ready repairs are mx… not value-add
• - plan is to buy-and-hold, these repairs would be needed eventually… might as well get them done now

Financials

Sale price: $199k

Interest: 8%

Down Payment: ~$40k (20%)

Closing costs: $12k

Make-ready repairs: ~$10k

Cash flow: $200/month

• - still cash flows at 8% interest
• - Cash reserves available for unexpected breaks; paying mortgage myself
• - Must receive combined $2700/month to break even

Seller contributions

$2k towards closing

$10k towards repairs

HVAC routine mx

$1k Flood insurance renewal

$250 termite inspection

$125 foundation warranty transfer fee

• - Extremely motivated old lady… but she’s basically at the end of her rope… nothing left to give
• - So many repairs and basic maintenance needed, even at this price w/ seller concessions… might not be a good deal

Location

Donaldsonville, LA

• ~1000 personnel; 500 are contract/temp at any one time
• ~600 employees at Shell in Geismer (~30 min away)
• 1hr from New Orleans
• 45 min from Baton Rouge
• March 2025 – final confirmation of Hyundai steel factory- $5.8B investment; first north American electric arc furnace (EAF) – groundbreaking Q3 2026

• - Potential for property values to increase soon
• - New/more people expected to enter area
• - Small town – not much new construction & limited inventory: potential high demand for rentals
• - Hard to trust anything in current economic conditions… something could go wrong/be cancelled between now and Q3 2026

General mx

• General Handyman tasks = $2k
  • Door trim/adjustment
• Replace rooftop vents with thimbles
• Fix ceiling fan (counterweight)
• Add smoke/carbon monoxide detectors
• Add gutters = $2k
• Trim 2x large trees overhanging roof = $2k

• - Seller unwilling to perform any of these
• - My $10-20k is going towards repairs instead of renovations/upgrades
• - “don’t know what we don’t know” – will likely find more things as maintenance is performed

Plumbing

Inspection revealed cracks in original cast iron and terracotta pipes: $22k to reline all; $8k for cast iron only (from only 1 bid)

• - Not an emergency *yet*; can defer though not a good idea 
• - people think the $22k quote is way too high (2 realtors, 1 contractor)

Electrical

Replace cloth and rubber-covered wiring = $11k

• - Seller contribution of $10k towards repairs mostly covers this
• - MUST be replaced
• - $11k only covers cost of rewiring – not drywall or panel replacement should they have to cut through walls

HVAC

• (additional HVAC mx, if needed = $1.5k)
• Add attic insulation = $2k

• - Seller performing basic mx
• - Both units are old and neither uses EPA-approved refrigerants allowed today. - One is a 2-ton and the other a 4-ton – likely looking at $16k to replace both if they break
• - Attic needs an additional ~7in of insulation added; without it the HVACs are working harder than necessary – shortening lifespan but insulation will cost $2-8k

Foundation

Foundation inspection (same people that inserted foundation pillars for $8k suggested adding 8 more pillars for $15k)

• - Basically every home in Louisiana has foundation issues… it’s a swamp
• - General inspection report doesn’t think it looks bad
• - Mx can be deferred
• - Current foundation warranty exists for life of structure
• - Costly to add additional piling support to remainder of house