All Forum Posts by: Rob Glover

@Denise Mayo-Walley We are currently going through a very similar situation. A pipe broke and we had water flooding the house for about an hour until we could get onsite to turnoff the water.

I'm interested to hear what your insurance covered?

Currently we are offering to cover 1) drying out of the property, 2) replacement of the damaged floor (includes moving tenants property into storage), 3) 'restoration' - replacing baseboards and drywall removed for drying out.

The insurance company is disputing that a) the house was inhabitable during the drying process (note they have removed some of the vinyl floor and b) the final cleaning of the house (the tenant is complaining about dust on the appliances and in the cabinets).

I'd like to know how it ended for you.

Thanks

Rob

I bought my first turn-key through Oceanpoint Investments. I'm currently in the process of switching property management companies now. PM me for details.

Great Idea Riku,

 Be sure to do your research on the Detroit metro area. If you find a decent house in a decent neighborhood that cash flows well, this could be a good start.
As far as financing, could your father do owner occupied financing? If this is your first time, I'd consider sticking with a conventional investment loan just to be safe. Maybe your father could help you out with the down payment.

Let me know if you need some help looking at some numbers around the Detroit Metro. I'm always looking at different areas around town.

Steven,

 Thanks for the heads up on possible mold issues. The basement is also covered ceiling to floor in the same white coating, even the studs. I couldn't really figure out why, maybe covering some past moisture. We are definitely planning an inspection; do you think mold/ moisture issues would be detected even if they are covered  up like this?

Maybe the term 'gut' is a little too strong. There's only one interior wall on the first floor, framing the kitchen area. Since the kitchen is non-existent, we hope to remove the partition wall and bring the kitchen all the way to the exterior wall for a big open layout.

Also, there is no flooring. The second floor rooms are in decent shape, but needs flooring also. We are renting now, and plan on completing the major work before moving in. I don't think we could get by with no kitchen or working bathroom for too long. haha

Thanks, Larry,

 Since it would be a 203K loan, the work is required to be done by a 203K contractor.
With no experience in my belt at all, I was just wondering how far 50K would go on a complete gut rehab like this.

I was interested on any past experiences for live-in flips?

Loved it? Hated it? Too much work?

I would be happy to break even, and I will walk away from the deal if the construction bid comes in too high.

Hello fellow BPer's,

 We're looking at a house to fix-up here in Troy, Michigan

Does anybody have experience on live-in flips?

This is will be our first project, and it looks like a major rehab (pics below), we will definitely be using 203K loan to cover the work. I was hoping that the project would be a good chance to learn the rehab flow, and I get the bonus of a customized house when we're done.

Comp's in the neighborhood put the ARV at $270 to $280K.

We made an offer at 190K, and figured we are not going to hold it to the 70% ARV rule, since we need a house anyway.

The location is great; good schools, close to work, nice neighborhood.

The surrounding neighborhood has a good mix of older houses as well as some high end new construction on the same streets, so I think in two or more years we have a good chance of selling it for a decent price, and move on.

Thanks for the quick response Tony.

I hadn't planned on including the wife, because she is now a stay-at-home-mom, and has no income.

I did buy the property in our LLC, which I'm being told is no good for lending (another newb mistake?).
So the lender is suggesting I deed the property from our LLC to the two of us, and this should resolve the issue.
I am not against adding the Mrs. to the loan, as long as it doesn't hurt us.

Hello BP,

 First timer here, and trying to use Delayed Financing loan to refinance an rental property I just picked up (cash purchase). The issue I am having is that some of the funds came from my wife's account, not joint account. This seems like a automatic dis-qualifier for using Delayed Financing for investment property.

(I spoke with a few lenders prior to the purchase regarding the Delayed Financing loan, but I never discussed with him this key bit of information.)

I'm working with the lender, but I have zero experience except for what I've read in REI books and on BP.

Any advice would be greatly appreciated?

We had planned on using the cash back for the down payment on our Primary Residence, but I don't know when I'll be seeing those funds again...

Had I known then what I know now, I will get my finances straightened out BEFORE I purchase next time.

Property info:

Turnkey SFR in Indianapolis, tenant and property management in place

 Purchase price : 36,500 paid cash

 Rent: 675 / mo

Hi, I'm going to jump in here.
I'm looking for turnkey rental properties in Omaha.

Feel free to contact me if you have any opportunities.

Thanks