All Forum Posts by: Nate Richards

welcome Joseph, 

I'm not versed in this area, (sfr in akron is my thing) but since nobody with experience has responded....

I would focus on Lake County right now. For familiarity and ease of access reasons. I am assuming this may be a unit needing work, and you dont want to spend 2 hrs a day commuting, thus cutting into other rehab activities. I woukd think the I-90/2 corridor and 5-miles south would net a nice starter. I'm thinking (Eastlake Wickliffe Willoughby Mentor Painesville possibly Kirtland) From my casual looking I would think the cap rates are going to vary 5 points depending on seller and locale. Been personally looking at 4 units and under 12% keeps me on the sidelines....lots of single digit stuff sitting around cuz I get 30% on sfr, even seen them in Wickliffe.

Thanks Kim! That is the answer I was looking for.  Completely reasonable and makes sense for bother parties. This basement lacks egress as well as it has the 14x32 casement windows.  It was advertised as a 3/1 ranch with basement laundry, utility bathroom, & storage.

looks like some more detail is needed. It took 90 days to rehab, it's been over 180 days and a wall has wept 2x, but not enough to flow to a floor drain, and there is not mold present nor does the wall remain damp, so yes I would call it minor.

1. The soil is already graded out with no pooling at the foundation. It all pitches to the far side of the driveway, 14 feet away, where a french drain is installed running to the street. (I did have a friend who is a waterproofer look at it the time I witnessed the outside flood, and saw water inside, and he indicated installing a sump may not flow enough and also allow an easy spot for penetration)

2. There are gutters on a 24" overhang, and the driveway is 18" from the foundation. No water falls from the roof, and all of the drain tiles function.

3. I do not know how often the river overflows but both instances were over 3" in 1 hour (100yr flood amount), beyond capacity of the city storm system, and closed a few intersections in the neoghborhood. 

4. The last time it rained there was a yard debris line present about 1 ft from the foundation on the low side ( drive is on the high side, about 2 ft of fall across property) this line is above where the storm water exits. So what I am saying it that the subsoil is super-saturated. 

5. The basement wall is exposed block which is painted only. I don't know if Drylok would bond with a preexisting coat of paint on it. There is electric and a paneled center wall creating division from laundry and bathroom down there. 

And to my original question, MANY landlords have some form of moisture, so what are they telling tenants, and what are they responsible for?

OBVIOUSLY, a french drain inside or outside isn't happening this week, or probably not until I turn the unit over to a new tenant. The area could be used as a playroom/poker room  but wasn't marketed as such. In the mean time, do I tell them to use a mop and don't put valuables there? Refund some rent for the inconvenience? Tell him if he sees mold to contact me to remediate? Move them out and rip up the foundation on a hope it fixes the issue?

Hi, I just bought my second unit, a probate rehab & rent. It took me 90 days to fix it up and place a new tenant. Ive noticed that the basement wall seeps water during very heavy rain due to hydrostatic pressure. It is about 1/4 bucket when moped up. This happened 2x, once during rehab and the tenant says it happened yesterday.

As a preventive measure I replaced some drain tiles on the opposite side of the driveway, where the neighbors gutters overflow. I also had the concrete drive leveled and it's pitching away from the house. There is no sump pump as it was built in 1950.

What is my responsibility/response to the tenant on this. I'm sure I'm not the only landlord with minor water issues. I want to be fair but not over do it. The tenant is new and I would like to keep him for a long time if possible.

Also note it is in an area where the storm drains back up when the river overflows (the house has plugs in all the drains) so I would think a sump pump is not going to work anyway.

Thanks for you input!

@Jerry Padilla 

Thanks! Is there a cost to adding her to the title and can it be done during refi? she would pass any financing "tests" and has the cash flow to pay our current obligations. 

I just purchased the property February 11, so it is not on my tax return yet. I'm also not familiar with "75% of lease agreements", you refer to, can you elaborate?

Hi Guys,

Looking for some recommendations here.

I'm a newer investor (2 properties this year), and have a free and clear rental property I recently rehabbed and rented, with new tenants (2 months ago). My initial plan was to do a cash out refi @ 180 days (Aug). However, I've recently parted ways with my employer, so my current lender says I have to wait until I am working again and also have 2 months of paystubs to prove it. 

Are there some recommendations on where I could refi based on rental income, or my wife's income? The house is in my name only, but I am married, and my wife has great income and no debt to her name. Any chance she can pull the loan? Since I've only been doing this a year, the bank is saying my rental income is irrelevant. I'm looking to pull 40-45k, and it rents for $750/mo, which more than covers a 30yr note including Taxes & ins....

Any insight would be appreciated.

Thanks,

Nate

I wouldn't flip in my area, not sure what yours is like. Go for long term tenants and farm out the trades. Making a repair once a year is akin to paying management fees on a mutual fund. If your plumbing roof and windows are in good shape what else would you have to fix when you are flipping tenants every 5-10 years? Sounds like your "investor" needs some tenant screening tips.

hello Benjamin, welcome to BP. I am a newbie as well and after finding this site have purchased my first two investment properties. You will be able to find answers to just about anything you want on this website. Feel free to reach out to me as I am local as well.

I understand coming to see what your money bought, especially when you are invested in the area already. It seems like your agent is simply being the gc or liason for her husbands business. I agree she should be compensated for that, but as Dell points out it sounds like a sweeter deal for her. look to pay her a fee for her efforts, put some skin in the game (you buy she pays rehab), or adjust the split in your favor. It sounds like a 70/30 at the moment. 

Hi Rhonda, 

I'm totally confused on the partnership. If you are buying and financing it all, what is her value add? 

If she's the buyer, let her take all or most of the risk (own and manage flip) while you simply finance the deal and approve scope of work for a 5050 split.

If you are buying and working (minor labor and selecting materials) and she is billing out contractor services and making commissions why would you split anything? 

The last question. If it's such a good deal how is it not gone in under 1 day...

I've missed properties like this as they are typically under contract in an hour. 

But my main point is that my realtor arranges all these services (provide qualified sub contractor lists) no charge so I keep bringing business his way and he gets commissions. We don't need to partner.