All Forum Posts by: Nick Albin

Ok guys so this could be a potential deal I found in the area I have been farming in for a while.

House is foreclosed. Offered 27k a few months ago. Nothing. Then I got a call and the agent was asking if the offer was still good. Took a look at the house and needs some basic cosmetic work. I have my plumber and electrician I know to come and take a look and make sure everything there is good to go.

The houses in the area that are similar (3bed, 1 bath) rent for between 600-650.

I will do the monthly income and you guys critique me.
Gross rent =625
vacancy fac.= 32
mortgage(est).=243 (15 year mort at 7.0 inters)
maint reserve=115
taxes=50
insur=25
other exp= 20
---------------
140
(i know this is a rough estimate so I will not count on the 140 automatically)

Now obviously I have to see the exact amount of work that needs to be done. But honestly I took a long look at the house twice. Once when I made the offer and just earlier this afternoon.

Seems like a good deal to me. But if you guys could chime in and tell me what i am missing that would be fine.

Oh yeah. Also most of the comparable homes in the area sell for 55-65k.

So question about property managers. They take a percentage of the total rent.

One question I have is, do they repair and take care of the small light work for your rental (i.e paint, minor plumbing, etc) for no additional cost? Does it differ from manager to manager, firm to firm?

Thanks guys

Networking. Gotta get out there and talk and meet people.

Check out your local REIA for meetings. That will give you a chance to meet people who are doing the same thing you are and would potentially be interested in working with you to make some money.

I am sure there are other ways. That just seems like a good starting place.

I am still in school and thats what I did. I previously actually live with my two friends.

I bought the house and they help out with the payments and bills.

When we decided to live together in the house, we all got together and wrote down the rules of the house and how everything would be payed. Its a good deal for all of us. We can all finish school without having to pay for everything alone. Plus we are all into lifting and wrestling. So paying for all the eggs, steak and pasta split 3 ways is a lot cheaper lol.

Yeah the pvc is what they told me I would need to stop the roots.

I got 2 estimates so far. The cheapest being $1,850. So not terrible. However I will take your advice about the camera guy.

Where would I get in touch with a guy who can scope it?

I will try to call my uncle and see if he knows anyone.

Hey guys thanks for the support.

I got my uncle (a plumber) he came over and got out this long thing of coiled cord with a spear head at the end. Hooked it up to a motor and periodically we would flushed the toilet or something and we got a big ole root out.

He was telling me, depending on the severity I might need to get the line to the house replaced with pvc pipe. Says it could be sold cast iron pipe that has cracked.

But anyways it was something new to learn and I have it fixed for now.

Ok. Can I borrow a tool from like lowes or home depot or somehting?

Like the "rotating cutter" you were talking about or a auger of some sort?

Thanks. We have some sort of vavle or something out in the front. The guy who owned the house before me told me he has had to run a snake down it to clean it out. Says roots from the tree mess with it or something.

Yeah I got an idea of what you mean. The toilet flushed then I tried it again and it clogged back up. The tub is empty now. So I poured a little water down it to see if it could help. and the toilet bubble lol.

Well time to go work on it. thanks guys.

I am gonna get ahold of a plumber tommorow.

But just to see what you guys think could be going on

The houses all the drains are draining slowly and if at all. THe toilet was working fine then just got clogged up. The bath tub strangely enough filled with water.

Could it be something with the sewage vacuum or something like that? A friend of mine mentioned something about it.

Bassically the toilet and bathtub are not draining at all and the kitchen sinks are draining slower than normal.

I guess it differs for everyone. I have a friend who does alot of deals with lease options. Alot of them have been pretty good to him.

With his first lease option the tenant never bought the home but rented it and paid on time for over 2 years.

With some of the houses it attracts people who either do not have the financing or aren't really sure and when you advertise it as "rent to own" they end up getting into the house and never buying it but become decent tenants.

Obviously I am still learning , but just seems like alot of things in REI. You can get burned but you can also make some money. Just do your homework and put yourself in a good position so that your ready for whatever happens.