All Forum Posts by: Sam W.

Pretty broad question....

Paul Nagy

Seems this estimate was right in the ballpark you were looking at. Are you going to have another estimate done as well?

The relatively small cost seems like money well spent for the extra bedroom - increases rents and the value of the property.

The lease survives the sale of the property. Remember you still must give the required notice if you decide not to continue or renew the lease.

What do you bring to the partnership and, more specifically, what risk are you taking?

In my area a good rule of thumb is that a basic installation for a basic replacement window (same size as old window) is about the cost of the window. So, a $130 window will generally cost $130 to install. That's my rule of thumb when rehabbing.

Would certainly depend on the price-point of the property you are flipping. A higher end buyer would expect higher end appliances.

Is bothering them until they tell you to stop a good tactic? Any danger of being perceived as either a bully or a vulture?

Alex R.

It certainly would provide indication that the property was rented...as well as indication of income.

I find it less useful than some might due to how I invest. I have concentrated my properties in one area and have become very familiar with and proficient in that area. When I am looking at a property, I have a very, very good feel for the marketablily of the property (demand and potential rent).

Certainly if I was considering properties outside of my area of interest - or property types outside of area of expertise - I would find the Sch. E more useful

Alex R.

As you know, the Sch. E is the reported income and expenses for the property. If the filer is honest, will list the actual rent collected as well as repairs/utilities/taxes, etc for the year.

You would get one by asking the seller for it. Personally, I've never asked for one because I am reasonably good at estimating rents and expenses for smaller (4 unit and below) MFHs....and the 50% rule has actually served me fairly well. If I invested in much larger properties (20+ unit MFHs) I probaby would do a more rigorous examination of the expenses and rents a seller claimed.

But that's just me...others can certainly provide excellent reasons a Sch. E examination is a good thing.

It means the seller will not permit the water service to be turned on (plumber will have to do a pressure test).

Sam