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All Forum Posts by: Wes Marden

Wes Marden has started 2 posts and replied 17 times.

Post: Inspections?

Wes MardenPosted
  • Real Estate Investor
  • AR
  • Posts 17
  • Votes 4

If you can, it is a good idea. I am just starting out. On some houses you cannot get the utilities turned on, HUD investor housing they will not let you turn on the power. But if there is a way to get it inspected I would, if nothing else the inspector could give you peace of mind on aspects of the structure you don't understand.

Post: Should you use an agent or sell your home FSBO?

Wes MardenPosted
  • Real Estate Investor
  • AR
  • Posts 17
  • Votes 4

I am new to this. I am aware the agent is an extra cost, but it is somewhat factored in on my first rehab. Also since I am new I think the agent provides some protection for me and gives advice on what to concentrate on as I finish this first rehab. I am not yet comfortable enough or experienced enough to sell FSBO.

Post: Concerning startup capital

Wes MardenPosted
  • Real Estate Investor
  • AR
  • Posts 17
  • Votes 4

That is what I am doing right now. I have made some mistakes doing this, but for a first foray into investing it could be worse. I won't lose money and should have at least some profit plus I did live here for a year with the mortgage being comparable in rent to my old one bedroom 500 odd square foot apartment.

This house is a hud house. Got a better deal and was able to get the house because of owner occupied status. The only problem is you have to sign a contract saying you will live there for a year. Also with HUD you can only owner occupy every 2 years.

One disadvantage is that a house that you would want to live in might not be as discounted as is optimal for investing. I don't know that it is optimal for investing doing it this way. Also when you get ready to sell the house you will have to stage it with your stuff which might mean storing or getting rid of some of your stuff.

Also you have to set your personality aside somewhat so that your house will be more marketable.

You will learn what your capabilities are and expand them. I have learned skills that should help my rehab work in the future.

One advantage is that financing should be easier to get being owner occupied.

Post: How do I attract investors considering I don't have a track record?

Wes MardenPosted
  • Real Estate Investor
  • AR
  • Posts 17
  • Votes 4

Ask. You just have to ask those around you if they are interested in real estate. You may find a partner that way.

Do you have any sales training? Rejection is part of the game, you just have to keep asking till you find a lender who will work with you. Or a partner who can get a lender. My last car(older sports car) it took me about 4 lenders to find one who would lend on that car. I kept asking till I found one who would work with me.

Learn to accept rejection and keep plugging away. If you want something bad enough you can usually find a way to make it happen.

You may have to find a house that you can occupy while you rehab it. Live there a while and fix it up until you are able to sell it. There is a way if you work long/hard enough to find it.

Post: Slab home

Wes MardenPosted
  • Real Estate Investor
  • AR
  • Posts 17
  • Votes 4

I am no expert, but most slab houses here in northern Arkansas are ok from the standpoint of structural issues. There is less to go wrong than with crawlspace or basement homes. But like said above tearing up plumbing could be expensive. Anything can be screwed up, but once in place a slab should have less issues all things being equal.

Like any other home do your due diligence and have an inspector or contractor take a look at it to make sure the house is structurally sound. There may be more issues with frost up north that we do not deal with down here.

Post: Bedroom Access through Bathroom

Wes MardenPosted
  • Real Estate Investor
  • AR
  • Posts 17
  • Votes 4

Some things you cannot fix in terms of floor plan without significant demolition work. I don't know about specific code issues, but I would not buy the house without a significant discount in the price. There are tons of houses out there with simpler problems to fix.

I did not realize how old a thread I was on. Oops.

Post: Pay Off Properties vs Purchase More Properties

Wes MardenPosted
  • Real Estate Investor
  • AR
  • Posts 17
  • Votes 4

You have to know your risk tolerance in order to make the best decision on any investment. Having said that, negative cash flow can drag you down. I think agree with the first guy who said sell and find better property, however if you project decent appreciation in that area a refinance might make sense.

Post: A few(9) rehab questions

Wes MardenPosted
  • Real Estate Investor
  • AR
  • Posts 17
  • Votes 4

We should find out Monday if HUD accepted our bid on the cat pee house. The cat pee is mainly in the living room, though I know cats were at times locked in other rooms by the doors we will have to replace. So I have a few questions about this house. The good thing is that it is fairly solid. It has been treated well for most of its life. It is only in the last 5-7 years that there may have been problem tenants/owners. I won't go into the paint choices.

1. We were thinking of putting in tile in the kitchen. It is linoleum over hardwood floors. I know we will have to get the linoleum up. But with solid hardwood floors is much more prep needed? Also what are typical labor costs in the south for a basic simple square tile job? This house is in Arkansas and the kitchen dining area add up to about 180 to 220 square feet(I don't have the info right at hand). Is this a job you recommend for first timers?

2. Laminate or carpet for the living room? Which is going to be a better selling point in a working to middle class neighborhood.

3. On the cat pee, can it be sanded out?

4. I don't know the name of the gear, but what is a good source for hanging racks for pots, pans, and other utensils? One cabinet may have to go so we were thinking of putting this stuff in. My mom's kitchen just has screw in hooks next to her stove, but I was thinking maybe something a little fancier.

5. I know you would have to see the doors, but which is the better solution in terms of money and in terms of end results for the scratches: either just trying to putty up and paint the doors or new doors?

6. Home depot has a contractor pricing book, is this any use for me as a beginner? I was thinking it might help me make better estimates. I can do pretty good on supplies/materials by shopping around, but the prices for pro work is not something we can really know. One good thing in this area is I have a cousin who is a building contractor, mostly commercial work with a few houses, and he can refer us to contractors and related workers who should be pretty decent. And I also have access to a decent handy man who people I trust trust him.

7. The wiring is old, but not awful shape. It is just all old two prong wiring? Is it worth it, in terms of helping sell the house, to have them all replaced with modern 3 prong outlets? If it were only a matter of replacing outlets I could do that, but I would not trust myself to rewire the whole house. If not the whole house, would it be worth it to do any smaller portion of the house like say the kitchen?

8. In the master bedroom there is wall to wall wallpaper. It is placed over paneling. What is the best way to get a paintable surface? I do not know what is behind the wood paneling.

9. The half bath connects to the master bedroom with a hanging/folding "door". It is very old fashioned, maybe even original to the house(1968). The problem is that it is right next to the bedroom door. So what are the best door options? Maybe swing in to the bathroom even though it is tiny enough? Or swing out and possible have conflicts with the bedroom door? Since we most likely will be replacing the bedroom door we could have it swing from the opposite side of the frame.
I have more questions, but it is getting late.

Post: Cat Urine

Wes MardenPosted
  • Real Estate Investor
  • AR
  • Posts 17
  • Votes 4

Post that device and any info you find. If it works permanently it might be worth buying. Right now we are planning on going the kilz route.

Post: Background checks

Wes MardenPosted
  • Real Estate Investor
  • AR
  • Posts 17
  • Votes 4
Originally posted by "PNW":
Kroll Factual Data does a really good report. It's easy to read and they have live help on the phone.

Their criminal background check is worth the money and they've dug up things that the applicant swore had been expunged.

You have to go thrrough a security background check and an office inspection; nothing hard about it.

How is the pricing per report and what is the price for the inspection?

I just checked out their website and the info looks good. I like the idea of the tenant scoring similar to a FICO number.