All Forum Posts by: Sarah Shockley

Hi Mark,

I use Joe Nordin somewhat regularly for smaller handyman-type jobs. He's an interesting character, but very honest, meticulous, and doesn't charge too much.

904-384-5089/ 904-477-5215

Last December I bought a foreclosed 4-unit property in very rough shape. We shouldn't have been able to get a conventional loan, but managed to just squeak it through.

All 4 of the exterior hvac units had been stolen/vandalized. I wasn't able to negotiate for the bank to replace them before closing. I went out and bought window units with a heating component and installed them prior to appraisal, then returned them afterward. 

It worked! Then after we closed I had 4 brand new hvac systems installed.

There is a four bay open garage in the back, with one post separating two of the spaces. The post was slightly out of kilter since someone had bumped it with their car. The appraiser saw this and said the entire garage needed to be torn down. HUGE argument ensued. We had to get another appraisal. I took a 4 pound hammer and knocked the post back into place. Problem solved!

It depends on the scale and type of renovation work needed. Problems that affect the "livability, soundness, or structural integrity" are what to look out for, also potential health and safety issues.

So for livability:

operational heating systems, 

operational plumbing fixtures with no major leaks, 

operational electric systems reasonably up to date (No Federal Pacific or Zinsco panel box, no aluminum wiring, etc)

Roof with no active leaks - usually with at least 5 years of estimated remaining life

For soundness/structural integrity:

No foundation issues - cracks, slanting floors, entire house leaning over, etc

No evidence of termite infestation

Health/Safety:

No mold

Peeling paint, especially in buildings built prior to 1978

There's probably more, but that's all I can think of offhand. Unfortunately I've never come across a comprehensive list online that I would send you (believe me, I've looked.)

@Nir Babajani

Hello!

Are you looking for local contractors, or real estate investing companies that provide investment opportunities?

This location is in a VERY rough area - neighborhood is C- at best, more likely "D".

Also, I agree with previous posters advising the price is likely too high.

Hi Adam,

I'm an investor and realtor, and currently live in Jacksonville. I purchase, renovate, and manage my own rentals, but would like to eventually hire out the property management work. I've kept an eye on JWB for this reason.

I haven't used them to manage any of my rentals - however, there is a house just down the street from me that they manage, in the Murray Hill neighborhood. I drive by it almost every day, and have noticed high tenant turnover (tenants staying less than a year) and long periods of vacancy in between.

On the other hand, the house and yard are consistently kept up.

My own properties in the area are good comps with regard to location and amenities, and I have high demand for them, and very low turnover. I haven't been too impressed with JWB for this reason.

Just my two cents though. Might just be one bad apple!

The closer I get to quitting my day job, the more transparent I've been about my REI-related activities.

I used to let my co-workers assume that the renovations I've been working on (for basically 3 years straight now) were all on my personal home, instead of on my personal home AND also several investment properties. Now that the risk of negative consequences is lower, I'm more straightforward.

IE:"How was your weekend?" "Pretty good, I tiled the kitchen floor in one of my rental apartments. Wanna see pictures?" Everyone loves seeing before-and-after pictures of a good renovation!

Other than that, I try to get my tenants/contractors/etc to email and text, instead of call. I rarely answer phone calls while I'm at work. If an emergency comes up I'll usually walk outside for a few minutes to make a call; not a big deal with my current work culture.

I just encountered a similar scenario.

One of my tenants' leases is up in a month. They already told me they need a larger apartment (and I don't have one available they can move in to), so they plan to move out.

Tenant didn't pay his rent.

Like a schmuck I assumed he was going to move out early, and use his security deposit as his 'last month's rent', which would be a problem if the apartment was less than immaculate when he moves out.

After a few days I emailed him, asking if he was going to do the scenario above (or pay his rent), and saying the security deposit is there for a reason.

He told me he wasn't moving out early, and apologized for paying rent late. (He then paid his rent, and late fees.)

A man wiser than me said to be "wise as serpents, and innocent like doves."

It's certainly reasonable to have doubts about people, and also to do what you can to not get taken advantage of. I don't think that means you "don't have the temperament to be a landlord."

You have a three month deposit, purpose of which is to help mitigate your risks. Honestly I suspect that's the most risk mitigation you can do in this situation, and I think you've done a fairly good job of "preparing for the worst." Now all you can do is try some yoga, and wait and see!

@Joe Glick

Was Community First Credit Union willing to do closer to 75-80% LTV?

50% seems kinda low.

Also, would you mind giving more details about the process? I'd love to know what information they wanted from you in order to "approve" your loan, and how long the process took.

@Maggie Tasseron

There is not any state law in Florida that says you must rent to the first qualified applicant.

However, it is my personal policy, and is somewhat common sense.

Really interesting to hear everyone's opinions on what can easily venture into dangerous (illegal) territory with regards to 'turning down' applicants!