All Forum Posts by: Ned J.

@Beth Carter....hi Beth.....I have a rental in Kingwood that needs a bathroom remodel.... tile shower has leaked and caused some water damage... needs a rip out, repair water damage and replace...... cant find a contractor in that area...

Got a SFR rental in Kingwood that needs a bathroom remodel..... the tile shower grout has failed over the years and has resulted in water damage to the surrounding walls etc. So it needs to be ripped out, water damage fixed and shower replaced....

I self manage from CA and just use an agent to place tenants...no local PM. My current tenants brought the issue to my attention about 4 months ago and I have not been able to find a GC to work with...don't return calls, wont do estimate if I'm not on premises etc etc....

Tenant gave notice 6 weeks ago that they are moving out end of Sept, so tried some more GC and nothing.... then Harvey hit.....

So now I need a GC to do a remodel at the end of Sept with me managing it from CA......at a time when the GC work is in high demand....

I have a few other calls in but nothing definitive right now...... looking for other referrals....

Neighborhood is full of retirees and has no rental comps....doesn't sound like a great place to buy a rental investment property......and Zillow estimate is WAY off from your desired rent and in a bad way, so even factoring in some "leeway" for Zillow being off, its not even in the ballpark of what you need..... so going to be hard to convince me this is a good buy...unless its a buy and flip, but based on your numbers it doesn't sound like that's any good either

I agree with the rest..... this is a business..... the bank is going to want their $$.... the insurance company will still expect to get paid....and the state will want their taxes....so you should still expect to get paid. You can be compassionate but not be a charity at the same time.

Best advice is to show empathy to their situation but be up front and make arrangements/agreements BEFORE it comes to that situation....don't wait until it comes up....deal with it now. Maybe help locate them assistance programs etc.

I would not move forward with this tenant even if she shows up with the $$....this is your first red flag that there will be issues...don't ignore it...its a warning. Listen to your spider senses.....

She is in breach of the lease at day one, terminate the deal and find another tenant.

Maintenance % are a tad low....but otherwise look good to me. The cardinal rule for investing out of state...... go see things in person for yourself before you finalize anything...... the $$ you invest for the travel will be pennies compared to a bad investment. SO the numbers pass the first test of whether its worth going to the next step, which is going to see it in person.....

Comps in your area are going to dictate 90% of the value of your house- you can "add" based on some things that are "better" at your house, but some of them don't really make that big of a difference to many potential buyers......

The house is worth what someone will pay for it....bottom line...... and we ALL tend to think our possessions are worth more than they really are..... that's human nature since we have an emotional connection to them.

You may think its worth more, but the market will tell you what its worth........and Zillow is notoriously wrong on many levels, so yes its a widely known and free tool, but there are WAY better data points on the market in your area.....

I would ignore Zillow and work with the comps in your area to "prove" to potential buyers the value of your property- if the buyer is only using Zillow as a reference then they are clueless and you wont change that....

Agree with the above...eat the $200 on the carpet and move on..... not worth the hassle.  Especially if in reality the carpet has lived most of its useful life and its time to change them anyway...

I totally get the desire to want to stand by your principles.....and I hate to cave to tenants since it also trains them to be a PITA to their next landlord.... but its s business and you have to pick your battles and move on

Going to try and make it..thanks for the invite

With BRRR you do keep it... you buy, rehab, rent, refinance.... you don't sell it. It's just a strategy to buy with cash, add value and then pull the majority of your cash out via conventional financing..