All Forum Posts by: Slaughter Paul

Hello everyone. I recently bought my first investment property that I planned on house hacking but, I have a dilemma. The driveway slopes towards the house as illustrated in the pictures, which direct water towards the foundation resulting in a wet basement. The first company I contacted gave me a bid for drain tile and sump pump which was too expensive, so I rejected the bid. I then researched the topic and found 4 solutions to fix a wet basement: 3 exterior solutions (grading, french drains & foundation waterproofing) and 1 inside solution (interior drain tile). However, a lot of companies are presenting the last resort (interior drain tile) as your first and best option, when in my opinion nothing can be farther from the truth.

I finally contacted several concrete leveling companies about lifting and leveling the driveway to get water away from the house. I know there is no guarantee that this will stop the leak, but it is a cheaper option. I got bids from three out of the four companies. Companies 1 & 2 (Polyurethane Injection) accepted the job, while company 3 (mudjacking) said he can lift the driveway, but the concrete slab must be removed and company 4 (Polyurethane Injection) rejected due to the poured concrete on the driveway. I can really use the help with making a decision. What should I do?

Price Range:

Companies 1 & 2 between 1300-1500 (only lift and leveling) more with sealing the joints to get 5 years warranty

Company 3 is 1000

Thanks in advance for any feedback.

Hello everyone. I recently bought my first investment property that I'm planning on house hacking; however, I have a dilemma and I would like some feedback from the community. The driveway slopes towards the house as illustrated in the pictures, which direct water towards the foundation resulting in a wet basement. The first company I contacted gave me a bid for drain tile and sump pump which was too expensive, so I rejected the bid. I then researched the topic and found 4 solutions to fix a wet basement: 3 exterior solutions (grading, french drains & foundation waterproofing) and 1 inside solution (interior drain tile). However, a lot of companies are presenting the last resort (interior drain tile) as your first and best option, when in my opinion nothing can be farther from the truth.

I finally contacted several concrete leveling companies about lifting and leveling the driveway to get water away from the house. I know there is no guarantee that this will stop the leak, but it is a cheaper option. I got bids from three out of the four companies. Companies 1 & 2 (Polyurethane Injection) accepted the job, while company 3 (mudjacking) said he can lift the driveway, but the concrete slab must be removed and company 4 (Polyurethane Injection) rejected due to the poured concrete on the driveway. I can really use the help with this decision because one wrong move and boom. What should I do?

Price Range:

Companies 1 & 2 between 1300-1500 (only lift and leveling) more with sealing the joints to get 5 years warranty

Company 3 is 1000

Thanks in advance for any feedback.

@Claudia Valverde

Thanks for your feedback.

@John Warren

Thanks. I will take that into consideration.

@Stephen Kehoe

Thanks for that point of view. I do make enough to save 15% each year but I'm concern with putting so much money down for my first property. I would like to put less down and have more money in the bank in case of an emergency. However, I totally understand where you are coming from and I guess there really isn't a wrong option. It's all base on perspective. 

Thanks for reaching out @John Warren 

I plan on buying another property and repeating the process. I ran the numbers and in both cases I have a negative cash flow while living in the property but that could change if I rent out a room in my unit. However, once I move out of my unit and put someone in, my COC is 26% for option 1 and 33% for option 2. 

I haven't gave much thought on the cash out refinance idea but now that you mentioned it, that can definitely be a possibility down the road.

@Theresa Harris thanks for your advice! I appreciate it. I’ll sleep on it and make my decision tomorrow.

@Theresa Harris Yes, I plan on buying another property and repeating the process. I ran the numbers and in both cases I have a negative cash flow while living in the property but that can change if I rent out a room in my unit. However, after I move out, my COC is 26% for option 1 and 33% for option 2.

I’m planning on house hacking a duplex for 185k. However, I have a dilemma with choosing the best loan option. I plan to move out after one year and put someone in my unit and repeat the process again. My goal is to own the property long term.

Option 1: 15% down @ 2.625% with closing cost @ $6100 and total cash needed to close is $31,000

Option 2: 5% down @ 3.125%. Total cash to close is $14,750-$15,500. This depends on the current rate and if the bank pays any closing costs. This number consists of your 5% down payment, closing costs (title fees, appraisal), and prepaid (homeowners insurance and property taxes). PMI would be approx $53 a month. All of this depends on my credit score.

P.s I was able to get seller to split closing cost. Additionally, the property will need rehab, which can run me $5000 - $10,000 depending on what updates I decided to do first.

Thanks for your help!

@David M. that is the dilemma. Personally, I would like to have that ~18k in the bank in case of an emergency or when I decided to buy another property. My plan is to house hack for a year then put someone in my unit after I move out and repeat the process again. 

Option 1: 15% down @ 2.625 with closing cost @ $6100 and total cash to close is $31,000. Additionally, the property will need rehab, which can run me $5000 - $10,000 depending on what updates I decided to do first.