All Forum Posts by: Sid Leibowitz

450K  all in + 30K clean out and clean up. 50K legal.  

Hello Jason. I am in Glen Cove and do rehabs and flips. The inventory in the area on SFR is great as the taxes remain high and the property values are up mther as well. It makes for a motivated seller and selective buyer with pockets and need for a property to maintain or grow a family. All things are relative. Financially qualified are always available. Contractors as myself are just as aware as the local real estate brokers with the added ability to evaluate the rehab and flip costs. Many brokers are scoring the inventory for good deals as well so do not let a broker tell you that the property can not be purchased at your price especially when the taxes and rehab costs are high. Brokers are required to carry all offers to the owner. There are many people who acquire SFR through deaths in family elders. They may be lining out of state willing to dispose ASAP or they have to maintain property, landscaping, pay high taxes and not able manage the property without incurring additional investment. These want to dispose ASAP. Take a non emotional approach and there is a glut of empty commercial properties for sale everywhere. I stay away from those. The trend is to open retail and offices where there is lots of traffic like malls.

I agree with Guy. About 6 months ago I was selling a SFR in a hot area. all the local real estate agents said that it would bring no more than 700K. I suspected that they were all short and that there were no other properties to comp to. I did clean up and put on the market 1 mil 50K. There were 80 people at the open house. there were many curiosity seekers and brokers also there.when the smoke cleared we were down to 3 serious candidates. First one fell out after waiting 3 weeks for off shore money financing, the second tried to use a inspector to squeeze the price that they claimed the property was in need of rehab. It was totally livable. We disqualified that one and the third candidate was a charm and the deal went through. 1 mil, 50K..

If you are experienced then go with your gut. Do not let the local brokers dictate or convince you that they are the best and yhey have a handle on the value of properties in the area. Many are just just listing realtors trying to stay active with MLS and not working to personally market and close Your deal.

It is most difficult to guard yourself against all negative and subjective situations being in a landlord position. The are hundreds of situations that you may find yourself in at any time. Being a landlord is not a walk in the park. You may have to deal with pet, smoking, drugs, non payment, divorce, firearms, abusive tenants, physical damage, unemployment of tenants, physical disablement, disruptive children, disruptive visitors that come and stay, fire, natural disasters, management, all or some of the above and much much more. Being a landlord takes a tough skin and a shot gun and you must be religious and pray a lot and be a thug. This is not what one calls a profit center or a fun time in order to achieve ROI. for every one success story I have heard two nightmares. I myself left landlordism years ago to buy and flip and never looked back. Nothing is perfect however; being a landlord. Ugh. Double Ugh. LOL

I agree with Nathan and add that it sounds like a lot of difficulty and in the end is not worth the time and expense. Those pesky critters are very difficult to resolve in an infestation. Removing a bed does not resolve an infestation. It will take intensive and costly extermination procedures as well as cost of legal issues in its resolution. 

Michael. I think that you are under the impression that you do not think that you need a "contract" and that just the "estimate" will suffice.  You need a contract with remedies included !! If you work with a savvy contractor, they could actually throw a lien on your property until you pay them for incomplete, shabby workmanship or they can sue you and obtain a judgement and take your property.  A mean spirited contractor is your worst enemy. They understand what a mechanics lien is and have no problem instituting it. Protect yourself with a carefully crafted "contract document". Talk to your attorney and listen to his advise. 

I agree with Thomas S. and add that when you compare dollar for dollar and all construction costs it would be more cost effective purchasing a factory built trailer or motor home. Both are constructed to an industry standard with warranties and financing as well as licensed propane gas plumbers in a controlled factory environment. This is an added advantage of the manufacturers being able to purchase their materials in bulk where the tiny home builder is building one of so their construction costs are going to be much higher providing much less bang for the buck. The costs of a tiny home are quite a bit higher to a trailer for less space. The advancement in motor home and trailer design with slide outs, insulation and cabinetry has an edge to tiny home design and construction with the added advantage of chassis design and construction which enables over the road possibilities of long range mobility. As for the actual living community, there are negative connotations to operating a transient or mobile home park in many areas. Towns make it increasing difficult to secure zoning to build a new facility in most places. Even existing park operators are realizing that the land value are of greater value to subdivide, develop and construct houses with less zoning difficulty in development. I like the concept of tiny houses however, I am experienced and see that the movement will face stiff opposition and an uphill battle on many fronts with diminishing returns. There is nothing wrong with being creative and having a dream as long as it is realistic and has ROI.

Angela. From "practical", economical, roadworthy, environmental, safety experience,  the tiny home is less efficient than a motor home. The motor home is self contained and has to meet the standard of the RV association industry. The tiny house is a wood frame on a steel chassis. Not all motor homes are the same. As for esthetics, I understand your point. if you like the look of tiny home then this is subjective. If a son or daughter would want to go this route, I would not recommend it knowing and owning a number motor homes and traveling the roads for a number of years. What is the r-value of the insulation in a tiny home? I have not seen any insulation. You cannot built a square house on a steel structure and move it without damage. All things considered. The community concept is not a bad idea. I would invest in a community. The tiny home concept has numerous short comings for the cost. Try moving a tiny home and you will see for yourself. Not made for the open road. 

If the location is difficult to access like in a city with no street parking and the contractor has to walk the material in from a block away or you have to bring things up in an elevator or its a condo or you are asking him to go around and pick up items in many places or bring in samples of carpet for you to select or where they could only work specific hours, this could play an impact in the total cost also. If it is a easy access and you are not requesting the contractor to be responsible for accepting the curbside deliveries and handling to the apartment then the man hours are high. You need to go over any mis-perceptions with the contractor in order to evaluate their pricing criteria.

A contractor is an entity that organizes and subcontracts labor and equipment in order to complete your work order. They may employ its own forces or subcontract some of the tasks like electric and plumbing which may go to a "licensed" subcontractor. The contractor has a legal company name, license, Workman's compensation and liability insurance and collects sales tax and pay income tax. They are responsible to the government to comply with all state and federal laws. Cash has nothing to do with the contractors responsibility to pay taxes. It is a safety measure that you can not cancel a check of have insufficient funds and there payments are liquid. If you contract with a bonafide contractor they should supply you with a "line item estimate" explaining the labor and material costs of the components they are installing in your project. They are being upfront with everything they are going to do for a price. If they leave out anything, They are entitled to increase the cost to make a profit. AKA an "extra". The contract takes it one step further and breaks down not only the price, It explains what is included and excluded as to the compliance of the lawful transparency of your deal and agreement. It is a legal document that is an attachment of the "estimate". AKA "guesstimate". The estimate may not be the entire price. It is a best faith "estimate". This is not a contract price with no additions. Additions may take place a s the project progresses like finding mold or bad piping or electrical that requires upgrading in order to be compliant to current code. The contract agreement should also outline the deposit and progression payments as well as failure of either party in case either party does not live up to the agreement. Make a copy and read carefully and make column notes to discus with the contractor. The only thing legal is what is written and signed by both parties. Request a copy of the contract in advance of any work or obligation so you have enough time to digest the content.