All Forum Posts by: Michael S.

Do any of you have a good strategy for minimizing water expenses during vacancy?  Essentially, my goal would be to transition from one tenant to another in about 2 weeks without ever having the water bill in my name.  In my current system I am spending $60 to use ZERO gallons of water and have the bill in my name for 2-3 weeks (water, sewer and trash are on same bill, plus random service fees).  I own these properties long distance and use an honest but inefficient property manager.

In a perfect world I could get the manager to inspect the property and get the place cleaned the very next day after it has been vacated, and maybe the water is still on.  I am certain it could show and rent without water.  The risk is that the cleaner arrives and the water is off, now I am looking at at least another 2 or 3 days of vacancy to reschedule.  At $1400/month rent each day of vacancy costs $46 so maybe playing this game with the water isn't worth it.

It just bugs me to pay $60 for one or two week ZERO gallon water bill.  Maybe I should have the manager bill the tenant for the water as it is part of the cleaning charge and necessary for the cleaning.  Any suggestions?

Thank you all so much!  Tons of great info there.  I apologize for the late reply.  I checked back about 12 hours after my post and didn't see anything, so I figured it was DOA.  Sorry!

The home is actually my mother's in Calaveras County, CA.  The copper pipes were routed inside the middle of the cement with no insulation.  That in itself is probably some form of plumber malpractice, so its no surprise the builder is now out of business.  Not sure if it was a main line or not, but it was under the house, whereas all the lines post water heater are in the walls.   This kind of shoddy building would be impossible to discover during a home inspection.  It looks like maybe someone stepped on the pipe before the concrete was poured.

They ended up digging up 3' deep of concrete with a jackhammer to fix the pipe.  Now it has insulation and new copper piping.  What a disaster.  Insurance may be covering part of it.  The problem now is that the risk is high a leak will develop somewhere else.  Furthermore, this risk would probably need to be disclosed to any future buyer.  And, it has happened to at least 1 other home in the neighborhood, so anyone doing their homework might find that out.  

Thanks again!

@Upen Patel

Regarding the financing with preferred partners, are you underwriting you the individual, or are roofstock buyers able to do a commercial loan on the property itself?  I already have 3 mortgages, and I feel like my next one will be difficult to get, especially when starting from scratch with no relationship with a new bank in a new market.

@Linda Dalton

Do you think you could easily get a 4th loan with these preferred lenders through roofstock?  Do they understand investment property, or do they get confused about when they try to underwrite using all your mortgage obligations for 3+ houses across only your W-2 income?

looking at potentially a disaster of a situation regarding copper pipes inside concrete slab.

-Home is 10 years old

-Copper pipe inside the concrete slab had a leak.

-Pinpoint leak was found (after digging through several feet of concrete, using ultrasound to find leak)

-Pipes appear to be pretty thoroughly corroded

Is this normal for copper pipes to corrode inside concrete slab?  Is it normal to run pipes through the concrete, rather than above it?  Was this a 1 in a million event, or will the rest of the copper piping fail eventually?  Unfortunately the builder is out of business now.  1 other home in the development had the same type of leak in the slab about 2 years ago.

I'm worried that I can't sell at any reasonable price because I would have to disclose the issue with the pipes, and by now word is probably getting around about the pipes being a liability in this development.

Thanks everyone in advance for the ideas...

Anyone know any good SC lenders?

I have a $200,000 rental property in Beaufort, SC that has a $100,000 note on it at 4.875% that I would like to refinance.  In general, I feel like if I can get a rate of 4.5% or lower with <$1000 in ACTUAL closing costs it would be worth it to refinance.  When I type the amounts and zipcode into Bankrate I get zero bids.  I live in CA so this would all have to be done via internet/ phone.  I appreciate any referrals or assistance.  What's the going rate for a straight refinance (no cash out).

Additional Details/ Complications:

-I have had the property for 3 years, continuously rented

-2015 tax return I had $-4500 in losses ($3600 was depreciation, below market rent)

-2016 tax return $-7200 in losses (Hurricane Matthew, depreciation)

-Rent increased from $990 in 2015 to $1250 in late 2016 (market level) 

-740+ personal credit and low personal debt-to-income

I feel like I ought to get a decent rate at 50% LTV, but all the internet lenders seem to get scared off/ overcharge when they hear "investment property." My original loan was a Fannie Mae Homepath, which offered a low down payment for a relatively higher rate.

Thank you!

Thanks everyone for the responses. I am deployed with limited internet, so I apologize for the delayed response.

Here's a little more detail: there was really only 1 legitimate repair in the house call, the doorbell. It wasn't something serious like a broken window as another poster mentioned having happen to them. So, the $60/ hour in-house maintenance seems like he just asked the tenant "what else is wrong" and went around fixing a bunch of other stuff. It says "adjusted bathtub stopper" on the invoice. Are you kidding me?

So, the $60/ hour to fix a doorbell became a $170 maintenance call once all is said and done.

The problem isn't just the price of $60/ hour, its the trolling around the house looking for things to spray WD-40 on so he can bill another hour. That $170 bill eats up 2 months of what I had budgeted for maintenance, and its not even a serious problem like broken HVAC or bad plumbing. Unfortunately there aren't that many property managers in Beaufort.

Thanks again for all the replies!

Hi there,

My property manager in Beaufort, SC has an in-house maintenance firm that charges $60/ hour for general maintenance. In this specific case it was installing a new doorbell, re-attaching a fan cover, and adjusting a bathtub stopper. I already had the talk with them about these repairs being items the tenant should take care of, except prehaps for the doorbell. Even there, I would rather they leave the doorbell alone-- people can knock, right?

Anyways, my question is how does $60/ hour for general maintenance in South Carolina seem? It seems very high to me, especially since I hired a licensed and bonded electrician for only $65 an hour.

Also, any recommendations for a good property manager in Beaufort, SC? I have a feeling I will be looking for a new one soon.

Thanks for the help!

Thank you for all the replies.

@Brent Ludwig if I use the "Natures Neutralizer" is that something sold at Lowes?  It looks like it is sold through the website as well: http://www.naturesneutralizer.com/household/pet-od...

For a large area of subfloor that is damaged/ stained, I think the oil based Kilz might be the more economical choice. 

I just ripped out the carpet and pad at a new place I bought, and the subfloor is very dirty.   House had a really bas smell, probably from pet stains that soaked through carpet.  Carpet was heavily stained.  Basically, I don't think anyone ever vacuumed or steam cleaned the carpets in 10+ years.  I will sweep out the floors really good tomorrow, but I almost feel like I should mop the subfloor.  Is this a bad idea?  Is there a way to get the floor cleaner than just sweeping it without getting it wet?

I have a carpet guy coming in about 3 days to put down the new carpet and pad.

Thanks for any suggestions!

Better yet, would you legally be able to forbid them from getting a pool table?