All Forum Posts by: Nicholas Q.

@Zach Schwarzmiller, I just stumbled across this post because I am having similar issues with a plumbing leak under the slab.  In my case, I didn't end up having to tear up the slab because the leak ended up being just outside the foundation, so it was an easy fix.  

The problem is that the water leak seeped into the downstairs unit of a duplex and destroyed the flooring.  I incorrectly assumed that the flooring replacement would be covered by insurance.  They are telling me that even though the initial causing event was a burst water pipe, there is a clause in the policy that does not cover ground water seepage.  I've argued for days that this is not "ground water" and that it is due to a broken pipe.  It looks like I'm going to lose this battle.  It's not a big deal because I think the cost to fix the flooring is minimal, but it is more on principal.

It sounds like you did not have any damage to the dwelling as a result of your water pipe issues, so you didn't file an insurance claim, is that right?

I'm curious if any other BP members out there have thoughts on how to get this loss covered by insurance.  I just read a separate post suggesting that investors should only have the absolute minimum insurance coverage for catastrophic events only.  I'm starting to understand why.

@Andrew Postell amazing post and thanks for taking the time to answer everyone's questions. I read through the entire thread and one issue that I haven't seen addressed yet is the IRS's rules for a minimum market interest rate for private loans. If it is less than the AFR (~2% depending on term length), then the IRS will tax the LLC on the interest it should have received. Is there a strategy for dealing with this rule?

@Garrett White how did you get your new construction costs to be so low? That’s less than $100 per sq ft. In my area we are looking at $200-250 per sq ft for below average finishes. Did you do a spec build or manufactured home?

@Daniel Dietz how are you finding their phone numbers? Is there a favorite website lookup you use?

@Darren Finney thanks for the referral! I’ll check them out. 

Hi all,

I am resurrecting this post. I’m currently looking for a good PM in Bremerton. Is Lighthouse Cove still the best referral?

Thanks!

@Dean Hanson Well, the tenants originally agreed to the reduced rent terms verbally, but then closed on a home purchase of their own and decided to move out.  They actually moved out immediately even though they paid rent for the month.  We were able to get in and conduct the rehab during this month and then put the property up for sale and made a real nice profit.  We are now investing in a nearby city that is a much better rental market than Seattle.

@Mitch Messer@Mark Ainley thank you both for your great thoughts. It does seem like there are opportunities to lean out the PM operations and reduce costs but I also get the idea of spending that time on growth and finding deals instead. 

I've seen a lot of discussions on VAs, but nothing that I can find that specifically addresses this question. Does anyone use a VA as their property manager?

I'd like to fire my property manager and do it myself, but use a VA to handle all thing PM related. I think I could easily write out procedures for receiving work requests, sending letters for late rent, obtaining bids from contractors, etc. I think the challenging part would be the tenant replacement part, but I still think vetting prospective tenants could mostly be done virtually. I live close enough to meet tenants after done selecting has been done.

Any thoughts?

Hi @Derek Schlicker, did you ever come up with some good development estimates?  I am in a similar situation with a property much closer to Seattle but it is only zoned for SF.