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All Forum Posts by: Rodney Burayidi

Rodney Burayidi has started 7 posts and replied 30 times.

Post: New and First Acquisition: Duplex Property Indiana

Rodney BurayidiPosted
  • Investor
  • Atlanta, GA
  • Posts 30
  • Votes 22

@Robert McInteer Thank you! Yes, the insurance sent an inspector, we closed the deal, then sent paperwork requiring changes to keep coverage.

Post: New and First Acquisition: Duplex Property Indiana

Rodney BurayidiPosted
  • Investor
  • Atlanta, GA
  • Posts 30
  • Votes 22

@Christopher Reardon Thank you! I estimated $7,000 due to the age of the home and the list of differed maintenance. I have purchased J. Scott's book The Book on Estimating Rehab Costs to prepare me for the next one.

Post: New and First Acquisition: Duplex Property Indiana

Rodney BurayidiPosted
  • Investor
  • Atlanta, GA
  • Posts 30
  • Votes 22

@Tchaka Owen thank you for your response. Based on this I think I’ll need to find a new inspector or have a discussion with my current inspector prior to the next purchase. Ultimately I blame myself for not being through enough during the due diligence process.

Post: New and First Acquisition: Duplex Property Indiana

Rodney BurayidiPosted
  • Investor
  • Atlanta, GA
  • Posts 30
  • Votes 22

@Jaron Walling I did not visit the property prior to purchase. I don’t think I would have even known to ask this if I was there in person but from now on I will make sure everything is at least up to code. I did get plenty of videos and I have family in the area that took a look as well. I purchased in the Crown Hill neighborhood. It seems to be up and coming. @Eric Severson Thank you!

Post: New and First Acquisition: Duplex Property Indiana

Rodney BurayidiPosted
  • Investor
  • Atlanta, GA
  • Posts 30
  • Votes 22

Hello Bigger Pockets! I recently purchased my first investment property which is a cash flowing duplex (built 1920) in Indianapolis, IN. One unit is vacant and the other is occupied by a long term tenant. I financed the property through a local mortgage company and I put down 25% cash downpayment. I was able to analyze and purchase the property with the help of Bigger Pockets and a mentor. Prior to the purchase I had read 1 book and analyzed many properties and toured homes, but never really felt comfortable. I finally asked my college roommate, who is a real estate investor, for advice. He pointed me to Bigger Pockets and I haven't looked back since. Since joining I've listened to podcasts, watched Brandon's webinars, and read many of the books that were recommended on the podcast.

Things I learned in the process of purchasing the property since then.

-A good agent is always important but especially on the first purchase. A good agent has the patience to guide a new investor through what may seem like basic procedures without making the investor feel inferior. A good agent will also ask the extra questions to sellers to find out if there are any other properties available even if the property offered on doesn't work out. Also, a good agent is responsive.

-Due Dilligence: I learned to not let the sellers agent intimidate an investor about contractors analyzing the property thoroughly.

-Inspectors: Apart from contractors I had 4 different inspectors. 

First was my personal inspector who found the property to be in good structural standing and reliable. Definitely needed work since it is built in 1920 but I knew that going in. 

Second inspection was the lender's inspector. The lender's inspector found that there was a tree growing into the foundation that needed to be removed which was then removed by the seller. Other than that the home was solid and passed inspection. 

Third inspection was the home insurance company. This inspector believed the roof needed to be replaced and siding needed to be redone. I found this out after closing so I am currently in limbo with the insurance company about losing my home insurance. I may have to replace the roof if push comes to shove. ***I did not know I could close on a home without home insurance being 100% in place*** lesson learned.

Fourth inspection was by the property management's contractors. The property was found to have multiple issues that needed to be addressed before it could be deemed rent ready. The major issue was there was not main breaker box (Code Violation) so it needed to be installed. ****Always have an electrician look at the electrical system. I may have asked the seller to fix the problem prior to purchase If I had known. I don't think this would have stopped me from purchasing the property but could have been a lot worse so I will never take this risk again. Turns out that an inspector does not replace a contractor (lesson learned)***. The rehab of the one unit, outside of home, and systems was more expensive than I had hoped but I was prepared for the worst case scenario.

-Today the second unit is rent ready and currently being marketed. I have learned more than what I've written here but wanted to share something. I wouldn't trade this experience for anything and feel more prepared for my next acquisition.

This is all very helpful information. Thank you.

Thank you for your insight!

Hey Everyone! Is it better for an investor to have a property management company that also does rehabs or should the roles be held by separate companies? Also, is it better to have a property management company that only focuses on multi-family homes if that is what I'm interested in buying? Thank you.