All Forum Posts by: Peter Rowell

Welcome to the forum Mark! 

Hi @Joshua Lupo ,

I hear you! It's been tough lately with the lack of inventory in Albany. We have been trying to buy another property for the past year, but have been beat out many times. 

Don't worry about your first deal being a slam dunk. It obviously has to make sense and cash flow a bit once you move out, but there is also value in learning how to be a landlord and how to take care of a house. 

We bought in the Melrose neighborhood just up from the Madison/Western split. It was around the 10th house we put an offer on so don't get discouraged, just keep at it!

Pete

Albany is a solid area to invest. Colleges, state workers, and hospital give it a pretty stable tenant base. 

Daniel,

My wife and I did the exact same thing a couple years ago uptown in Albany. I actually went to school with @Kadeem Howell so I know the area pretty well. Let me know any questions you may have.

Pete

See you then!

@Nate Monson

Welcome to the site, so much good stuff on here.

My wife and I grew up, went to college, and are currently house hacking in the Albany area so we know the market pretty well. If you have any questions, feel free to reach out.

Pete

@Jaysen Medhurst Some items I would hire out and some I would do myself. The items I would do myself simply reflect materials costs. Apologies that it was not clear.The $10k for plumbing is a guess. I don't have a good idea of what it might be which unfortunately makes my numbers a bit less accurate. The property is being sold by the city and is done through a blind bid process without entry available to the homes. They ask you for a plan for the property and estimated rehabilitation costs. When I called the city and asked how can you estimate costs if you can't enter the property, they gave me an "oh yeah, that doesn't make much sense", but didn't elaborate beyond that.

@Ned Carey It is my understanding that the city has already foreclosed on the property and that the title is cleared upon transfer of the title. I had a friend who bought a property this way and this is what he indicated to me. The drywall was based on the assumption that it would not have to be all ripped down, but if I am truly looking to go worst case scenario, you are correct I need to add additional square footage.

@Brad Cogswell The property would be a buy and hold investment. 

I really appreciate all of the input guys! This is why I keep coming back to this site. The more feedback I get, the more I am starting to realize this may be over my head for my first real rehab deal. I think I may add the ability to actually view the property to my criteria, at least for my first couple of deals as it is very difficult to get accurate numbers without having a contractor walk the property with me. 

@Ashley Clemens

Hi Ashley! 

I'm in Albany as well. My wife and I are closing in on one year of house hacking but are still learning a lot. Keep absorbing all of the stuff on here, its useful and can keep you very motivated.

Pete

Thanks for the replies guys!

@Brian Degener I have walked by the property and tried to peak inside, but it looks like it is pretty well locked up. Short of busting out a window, I don't think I would be able to get in, but I'll keep looking for other options.

@John Leavelle I have the holding costs at a maximum of $2,500 a month and that is if all credit cards and personal loans are maxed out. Between my wife and my salary, we are able to cover this cost with a reasonable buffer. Rehab period would likely be around 6 months, but then again I don't have a ton of experience so it is tough to tell. 

However, the more I think about it, the more I agree with you that this shouldn't necessarily be my first BRRRR deal. I am always fighting the urge of complacency thinking I should be going after a deal, I just need to make sure that impatience doesn't lead me to make a bad decision.

Hi Everyone!

My wife and I are closing in on a year of our house hack in Albany, and are looking to expand across the river with a BRRRR tax lien deal in Troy. I've been running some numbers and lining up financing through personal lines of credit and 0% credit cards, but would love to get some feedback on potential rehab costs as this is not my area of expertise.

The property is a 3 unit which I am bidding on through the city of Troy's tax lien foreclosure program. The scariest part and biggest unknown is that I cannot see the property beforehand and because of this, I am factoring in all possible costs for the rehab. The numbers include hiring out any plumbing, electrical, roofing, or window repairs and doing the remainder of work myself. 

The quick and dirty stats are as follows:

Overall Numbers

Bid Price - $25,000

Estimated ARV - $160,000

70% of ARV - $112,000

Rehab Costs - $99,900

Total Investment - $124,900

Obviously, the numbers indicate I would be leaving some of my money in the deal, but this is worst case scenario. 

Rehab Costs

My biggest concern is being way off on the estimates. I know the odds of getting an estimate right on are slim (especially for someone like me with limited rehab experience) but I would appreciate anyone who could give an opinion on the below estimates and see if they are in the ballpark.

For context, the building is a 3 story 3 unit built in 1894 and approximately 4300 SQFT.

Any advice would be greatly appreciated! I would much rather have my plan ripped to shreds now that 5 months from now while I am in the middle of a rehab.