All Forum Posts by: Kerry M.

Jon Holdman Thanks - I didn't know how to do that. The credit cards is 150K total, from 6-8 years ago, highest amount owed was a fraction of that and then paid down. A little new activity (adding my name to two cards) but old credit with the new high balance. Score is still high.
So it's going to be a hard sell to the bank? They were already having a hard time. At first we couldn't get local insurance; the house had a poor reputation. Nobody sold us on this idea, we walked into it ourselves.
The neighbors say the house smells better than it used to and we have been hauling away trash to beat the band. I'm so tired I miscounted my kids: I have four teenagers, not five.
I am going to copy and paste the remarks so that we can use it as a guidebook once I have more firm numbers. At least it's not only in my brain, trying to find a solution.
Thanks

The house provides student housing for my son attending college. The rentals were supposed to make it all doable. So we do get some immediate benefit in the housing.
Stress relief is absolutely right on. Am taking the afternoon off.
I want to just leave this be for a while but don't think I can afford to do this.
Thank you,
Kerry

Thanks - a lot is being processed. I've hired a friend who has done flips before to help me get my numbers up to date as quickly as possible. I'm still registering with the electric company to pay them online for the first time, etc. I have a large family; I'm was feeding three relatives, oldest son, five teenagers (mine,) one 12 year old and my husband. We have hired a bit out, including electrical but the rough ins for the new baths are not hard, just time consuming.
A local handyman said that it would take him two months to do the work I hoped to do in one. He works for a lady who owns 100 rental homes. I'm not sure if that estimate was for himself or his crew. We have paid him $35/hr and tried to learn the how of fixing certain things, plus he straight did a few repairs for us.

Rents of $680, 780, 550 and 330 for a two bedroom (ready first,) 3, and two efficiencies, one larger than the first.

Many of the monthly payments are new and only within the last two months so I don't know. 1700 min payments is a 2+% on 75,000 total credit card debt. I just checked most are at 2% min payments, many at 0% for 12+ months (at least half.) We are still getting new offers for new cards at 0%.

We talked with the bank but didn't formally apply. The banker said it was good assuming 46K in repairs.

I'm not sure how much the repairs will be. I thought it would be 10K to go 30K ago. The ending point is uncertain because I haven't done this before, especially not the walls in poor condition.

Will get better numbers.

All laborers except oldest son started school, so our ability to rehab is cut way down. Thought we couldn't afford to hire out, but maybe we can?

Thank you.

I think the numbers stink, too. I'm mostly in shock that they are where they are. The last month of the summer we were working as fast as we could and I wasn't tracking the numbers until all the younger boys got in school.
I didn't know I could sell it occupied. Hadn't thought of that.
We didn't go crazy with upgrading the repair materials as much as I underestimated the cost of bringing the show on the road. In the middle of a workday, I served crockpot lasagne (8 quarts worth) and still ran out. I would buy 20 dollar hamburgers on top of serving sandwiches at home and they disappeared. $100 to eat one meal at Denny's, over a hundred to eat Thai, Korean or Chinese food. I was too busy supplying the lines to think or keep good track of the expenses. I'm used to life being expensive but crazy is too crazy for me.
I'll continue to crunch numbers so that at least I know where the mistakes were. Thanks, Don.

PS I'm listed as a rehabber but only because I don't know how to change my description. We owned other homes but for rehabbing a house it is the biggest of any other project we've done so far.

At what point do we consider getting out? The minimum payments are going to be 1700/mo if I'm reading this right. The goal was to cash out refinance but the work isn't done. And there's no rent coming in yet. I'm only at 50% usage of credit card limits but am way past my comfort level. It worries me going into winter without renters paying the heat, although we could winterize the units not being used (my sons stay in one of the units.) Could we wait it out until next summer? Keep going slowly? Use the cash for carrying costs during the school year? As an investor, would you do a deal with these numbers? Should I sell half of the original duplex?
TIA

We signed up for way more renovations than we thought.
Our total is 60K so far in repairs, 75K on credit card with 15K in cash in bank account (borrowed from credit cards.) The first unit is not rentable yet, although getting close.
Our building is 95 years old, was in very bad condition, now has new wiring, new plumbing, very old lathe and plaster walls, water issues (no more,) insured, 4 units....
The purchase price was 26K and I was told by professionals who knew my property that it would cash flow with repairs estimated at 45K. Rental values are a bit untested but close to reality. We showed the first unit yet undone on Friday. Still need 10K to being done minimum for the first and three other units.
A similar building like ours is on the market for 133K, with one less unit, location closer to campus, finished (obviously.) We're in 101K so far.
Dying...help please.
Kerry

Greg P,
I was wondering the same thing. Am posting to get help. We either signed up for way more renovations than we thought or.... Our total is 60K so far and the first unit is not rentable yet, although getting close and .
Need to start my own thread because our building is 95 years old, was in very bad condition, now has new wiring, new plumbing, very old lath and plaster walls, water issues (no more,) insured, 4 units....
The purchase price was low and I was told by professionals who knew my property that it would cash flow. But that was before my repair budget became 60K instead of 45K and still short 10K to being done at least.
A similar building like ours is on the market for 133K, with one less unit, location closer to campus, finished (obviously.) We're in 101K so far.
Dying...help
Kerry