All Forum Posts by: Bob Hank

The worst house I was in this year I bought.
It was a 2 bedroom one bath from the 1950's and had been vacant for at least 24 months. At some point someone tried to rip out the little bit of copper that was there, but it looked like they gave up with the 2” thick plaster walls. Part of the windows were updated with half inch plywood. It looked like it was the original bathroom with holes in the floor from water damage and had a bit of mold. The oak flooring had buckled from humidity. The foundation and bricks looked great, the underside of the 1x6” roof strips looked great also. I took $15,300 to closing and spent $35,000 on the rehab, but I’m only getting $1,000 a month on the rent. I do know I had around $300 in paint trying to cover up the bright paint colors.

The worst one I had ever been in had basement carpet and when I stepped on it it mushed before I decided it was covered in mold. The bedroom had a few larger blood spots n the floor and what was left of the walls.

I don't buy homes in historic areas where I live. Where I live at I see 2 types.
The first type is a long time owner that can not afford to keep it up because of all the rules about the exteriors, but they are so far under water on the house they can not sell it.
The second type is one that has flipped hands a few times and each time someone was going to fix it up, but did not know all the rules about what you can do and not do with the exterior. When they find out they dump it to the next person.
Because of the 2 they it dose not make a long term investments very smart.

I do buy older homes throughout the area as long as it is not on the historic list.

We do a property inspection every 12 months. At that time they get replaced. I hate seeing that box full of good 9 volt batteries that goes to recycle when it fills up.

In what states are you required to replace the batteries in a smoke detector more often than yearly? Could you please post a link to the city or state code for it. I have done a few searches for this but can not find the code for it in other states.

Where i'm at...
1 in each bed room.
1 out side each bed room. The detector must be with in 8 foot of the door. You can cover more than one out side bed room with with this if it's with in 8 feet of more than one bedroom door.
One on each floor of the house.
In the county there is something about a closed laundry room, but I don't know 100% how that one works.

A C02 detector on each floor. If there is gas you might need more, but i'm not 100% on how that works.

All smokes need to be on 1 interconnected circuit and depending on the inspector nothing else should be on the circuit. The electrician that is on my staff always puts the hall way light with the smokes. I have had to stand up to inspectors about this and ask them if nothing else on on the circuit then how do you know they are still getting power?

We finished the first few of the 42 house deal we are working on. We decided to stage a few and to a few realtors open and open houses. We closed on 3 of them and have 4 under contract. The other 2 were rented out. Were currently talking to 2 clients that ant us to flip to there finishes, but still working out the paper work.

My daughter paid off a loan we financed her for a restaurant.

Our rental income was at 92%. With not paying for lawn care during the winter we try 97%.

My son found a warehouse that he wants to buy for his company. He out grew his current warehouse and is limiting him. Hes has 3 years left on his lease, but wants to buy a huge warehouse and be out of the old one in 9 months.

My parents had company over for thanksgiving. On Saturday after part of them had left my step dad calls and tells me all his drains are clogged. I grabbed me snake and a shovel and went to go see what was up. After about 2 minutes of walking around the basement tapping on pipes I decided it was the septic tank.

I dug up both septic tank covers and called for a pump. With the extra people and the extra disposal the tank had mounded up under the inlet pipe. I made my mom come out and look at all the food that was just sitting there.

I unclogged the pipe, mixed the tank, watched the truck pump it all out, and cleaned the outlet filter. $260 for a pump out where I live if you have the cover off the tank and it's an easy pump out.

I give to local charities or charities that help a lot of people in my area that have combined fund-raising and administrative costs around 10% or less. A lot of times the smaller ones have a higher fund-raising and administrative cost.

There is a local branch of a charity that we work with to make houses more handicap accessible for kids.

For staging stuff we have a collection of stuff we buy as sell out or when I find a good sale. I have a storage room in my shop where we keep the stuff when not in use, but most of the time it's in a house being shown.

I have been a contractor for about 30 years. A contractor will mark something up to cover issues with the install and to cover warranty work. When someone else supplies the materials then it's best for the contractor to charge for time and materials.

HUD where I live will limit the amount of house they have on the market at a time.
Sometimes if you contact them with interest on a house they will put it on the market.

I'm in the middle of a 42 property deal with a local bank that contacted me.
o far I have gotten 8 of them, next week were getting 20, and I’m not sure about the rest of them.

I have done other group buys from banks, but not as large.