All Forum Posts by: Katie Neason

I didn't read the link to the other post. Based in the information in this post, I would put it under contract get a 10 day option period do the due diligence and let the numbers decide if it works or not.  Until it is under contract there is no deal. Once it is under contract you can decide if the numbers work for you or if you can wholesale the deal to a seasoned investor. They will let you really quick if it is a good deal. 

I would disagree with the above comments a little bit. My W-2 job requires that I find, hire and manage general contractors for small commercial projects ($1.2-$1.5MM) and I get 3 bids and select 1. I NEVER pay for these bids and I expect them to be accurate and all inclusive. That is the cost of doing business in this industry. If they do a great job and there are no significant issues on the next job I will let them bid first and if it is inline I do not necessarily rebid it, but I may ask them to get multiple bids on certain subs.  Until you have a history and a very good relationship it is your responsibility to micromanage. Once you have a history and a very good relationship it is still your job to manage.  

You are paying a premium to have a general contractor and with that you should not be surprised by known expenses, and porta potties and dumpster are known expenses. With that said there is always a learning curve for both sides and those situations provide opportunities to "build your relationship". I would have addressed it head on with him and let him know you do not want surprises and this was a surprise to you. Explain your side and hear his side and then come to a compromise. I would have had him split the cost with me. 

All that said, you are doing better than me being able to afford a GC for our rehabs! I need to buy better!

looks great!  What were the numbers? How did you find the deal?

I categorize fixed cost as anything you're going to pay whether you're working on the house or not. For example mowing, utilities, interest expense, HOA dues, property taxes, etc.

yep

Read the lease. It will tell you what notice you have to give the tenant. We are required to give HUD 60 days notice for lease changes.

@Jared Benson thanks so much for the advice! I am in bryan college station. Know any reputable foundation plumbing repair guys here?

I have a rehab and flip property under contract. Nice house in a good neighborhood. The issue/potential opportunity: the house clearly has a foundation issue. I am not afraid of foundation issues and have rehabbed houses with foundation issues in the past. This house has had a foundation issue in the past and appears to be recurring. What I want to do is determine the source of the issue and if it is economically feasible to fix. Previous inspections have shown the foundation issue appears to be from excessive water under the slab. A water pressure test was performed and did not reveal a leak. Additionally the water bills are not reflecting a leak. So....seems like the other 2 culprits could be a bad grading job forcing water back under the house or a sewage problem such as a crushed pipe, or maybe something else I have not thought of. Before I buy the house I want to know the issue. Who should I call and/or what tests can determine the source? Anyone out there encounter a similar issue? Any advice or direction is greatly appreciated.

what is the market value vs loan amount? What are the rents vs expenses? 

That is how I handle it when the investor puts up 1/2 the money and that is their only role.