All Forum Posts by: Matt M.

Assuming you have enough cash, time and that the municipality will allow it, you could DIY anything. The problem with this isn't the skill involved. The problem with large projects or just DIY in general is that you don't know exactly what you don't know until long after you've made the mistake. An easy example is receptacle heights over a kitchen counter. Let's say you put them at 40", since the counter height is 36 and you have a 4" backsplash, the math works out; until the cabinets are installed, walls are painted and the countertop is installed. When you go to install the cover plates they don't fit. The building inspector won't allow you to cut the plates, so your doing Sheetrock,electrical, paint, and possibly more in ten kitchens to get occupancy. Let's say that making that repair takes you 4 hours in each kitchen. 40 Hours x$25/hr (or whatever you would like to value your time at). It doesn't take too many compounding mistakes to realize the benefit of using contractors.

Without a engineering report or a site plan, I agree that a deep foundation is likely the most cost effective approach for the site. I'm not aware of the disclosure laws in your state, but you should also consider how the property disclosure may affect the final sales price. In designing the foundation, you may want to include ancillary site features, driveway, patio in your deep foundation plan as any unforeseen settlement with those features may open you up to future litigation. Deep foundations are usually more cost effective with two story homes when looking at a foundation cost/ total cost PSF.

The short answer is no, you cannot receive any portion of the sale without incurring tax. Potentially there is a way to escrow the money for repairs, but that does not sound like it's the case here. I personally would look at other options for reducing the tax burden, as the 1031 will likely cost you $400-800, or 2-4% of you profit in that sale. Depending on your tax bracket you may only be saving a small portion of the profit, especially if you were creative with other deductions.

Taxes, Insurance and Water Garbage seem low to me, but like the other posters it could be a New Orleans bias. I've looked at some smaller multis around HWY 90 but the vacancy due to a slower Oil Sector concerned me, especially with C class assets. If the expenses are correct and you've considered the potential for higher vacancy I like the numbers.

I just closed on my third property with an FHA loan this August. First was Cash, second conventional. Compared to the other two closings the FHA was the most complicated, but a lot of that had to do with my personal situation.

The important aspects to note, higher closing costs (upfront MIP), a one year occupancy restriction, and when you prepare to buy another property income from the property may not be considered depending on the lender.

@Drew Dowdell I think what you're referring to is called cultured marble, at least it is in my area. In hotels I also see Corian or other solid surface products for shower surrounds.  It's perfect when you don't want to use tile, but require a nicer finisher than the thin HD cut to fit surround. 

Hi Bigger Pockets, 

I'm a new member in New Orleans,  Louisiana with an interest in all things real estate, and I'm currently trying to find my first deal.  

I've been in the New Orleans area for six years, performing residential and commercial project management and estimating.  I'm currently full time at a commercial construction firm.  I have about $15-20 Million in completed projects working for other,  and now I'd like to branch out on my own.  

I've been a lurker here for a while so I am excited to meet some new people and learn from the pros. 

Thanks, 

Matt