All Forum Posts by: Kimberly H.

@Kimberly H. I'm sorry to hear about your pandemic rental headache!
Do you have a primary/property you can pull some cash out of? I would recommend paying off those credit cards as quickly as possible, while using the cheapest money available.
If not, I'd use the $8k in stock cash. Paying off debt would give you a guaranteed return of 18%, plus that'd be tax-free.
I'd really try to hunker down and lower living expenses, and get that apartment rent ready as quickly as possible.

Thank you so much for replying.

I can't pull money for primary because my credit score is not the greatest. I had 3 tenants that were not paying and I took a hit financially. Thankfully, I got them out and 2 are being rented. I should have my credit score in order in 6 months. Plus my husband lost his job.

Im back in the swing of things now and want to get on track. So, paying off debt should be my primary focus and renovating the property.

I love what you said "use the cheapest money possible". I totally get it.

Thanks a bunch. Sometime you over analyze and get stuck. I have no room to make mistakes right now. Your input is much appreciated.

0 Votes

I'm in such a confusing place right now. I'm 54 and want to prepare for retirement and beef up my real estate passive income along with paying off debt.

Choice:

1- Take a loan from my 401K to payoff all credit card dept (loan 3.5%) and Credit card debt avg rate (18%) - 30K

2-Take a loan from my 401K to renovate one of the apartments that was recently vacant. The tenant stayed 1 year paying no rent due to the pandemic and the place is a mess. Cost $7K to renovate the bathroom and kitchen (upgrade). Rent would be 1300 a month and use the remaining loan to renovate the apartment. I will still have a little debt left.

3-Take stock cash (8K) to renovate and keep high interest credit cards and no loan from 401K

4-Continue to stress out and do nothing, because I'm totally confused and don't want to make the wrong decision.

Can you guys give me your opinion on the correct way to move forward. The 401K loan would be for 5 years. I will be 60 years old when it's paid off. I'm planning on retiring at 60-62. 62 is more likely!

I appreciate your input. Thanks!

0 Votes

Originally posted by @Jai Reddy:

@Kimberly H.

Considerate of you to post an update even after 5 years have gone by.

How is copper water pipes related to gas lines? Is it that replacement of those water lines opening up sheet rock to run new gas lines?

How is water remediation different from using fans to dry and calling a waterproof company?

Glad you asked. All pipes were cut. I had one furnace for the entire house and all the pipes to the radiators and the radiators were cut out. So thats why I converted.

Water remediation cost thousands. All they did was suck the water out, place commercial fans around the room and mediate for MOLD. That cost me close to $5,000. One week later another flood. I rented a machine to get the water out, rented high powered fans and sprayed for mold and used a mold tester. Called a waterproofing company to access and fix the problem. It was a basement flood that lack proper waterproofing around the house. Lessons learned.

1 Vote

Update: After 5 years. Overall it's been a wonderful experience. With the cooper pipes gone day 1. I was able to convert to gas and separate the utilities for the duplex. One tenant has been there the entire time, replaced a frig, stove and fixed the roof 2x. Rent on time and no major issues. Equity up 20% and life is pretty darn good! I now have 1 single family to add to the mix and that's been rented the last 2 years. Mice problem that an exterminator handled and plumbing issues that were fixed for under $500 bucks. I also had a flood.....NEVER do water remediation. Get a bunch of fans and treat for MOLD and call a waterproof company. Learned a valuable lesson. Overall..I would do this all over again! I also changed Realtors! I just bought a vacant lot for dirt cheap. I want to put 2 tiny house on for seniors. Don't ask me how! Thanks all!

1 Vote

Mistake see below.

0 Votes

Originally posted by @Jennifer Rysdam:

What a big, beautiful house! If you do want it that bad, can you do half of the work to make it livable and then do the rest later? Would you really have to use the 3rd floor or much of the basement? Can you leave those for later? How much of the work could you do yourself? I live in a 100 year old house similar to that, and one big concern for us is lead paint. That would be a concern if you are working in it later while also living in it.

Two contractors will not touch it for 125k. Thats what I originally proposed. 2 floors only, blah blah!! Losing all hope.

1 Vote

Originally posted by @Jill F.:

@Kimberly H. ,

Hi! I am an "old house" person and I love that house too. But. I wouldn't buy that unless I had a partner and both of us had very strong handyman skills and we were looking at that as a twenty year committment.

Both my husband and I grew up with parents that were DIY renovators (and of course they pressed all us kids into service)-- so we are both very handy. My parents redid an old 1880's era house throughout my entire childhood; it still wasn't finished when I moved out! I can competently and without assistance paint, lay tile, finish drywall (if forced), strip and finish wood work, and wire up outlets and light fixtures. In addition, with instruction, I can do many other things and my husband is WAY more skilled than me. (Shoot! My 74 year old mother just helped us out on a renovation and she is better at hanging trim than many "trim carpenters")

Having said all that, that is an AWESOME looking house and if I was thirty and my partner thought it was the perfect house too, I'd consider it.

I don't think it would ever be cost effective to hire out that reno. Carefully consider what you LIKE to do and if you want to spend most free moments doing "home improvement." Most of my friends think I'm crazy.

Well said Jill....the project is not for us. 50 and ready to enjoy life, not tackle a life long proeject. It saddens me, because it could be a great house. So much potential.

0 Votes

Originally posted by @Duane Smith:

Without reading the other replies I would suggest getting creative. It's a beautiful home. One that your kids and grand kids would love to comeback to when they get older and possibly take over.

It may not be much of an asset, but you can trying renting spaces to friends and relatives to limit the liability of it in the long run. Seems like a huge place :)

Hope that's some encouraging words

Duane

Thats exactly why we wanted this place. 3 grands and just a beautiful location. House on the hill.

0 Votes

Originally posted by @Ola Dantis:

@Kimberly H. First, I want to say that I empathise with you 😞

To be succinct, I looked at this property, and I can tell that it's going to cost at least $150k, which I think is super low. We are rehabbing a project in Patterson Park right now, and every project comes with surprises, which aren't cheap. Our project has its own surprises.

Now, let's break this deal down a little bit, so let's assume, for a sec, that this was a new build, right? The cost-to-build is between $100-$125/sq.ft., so this project, as a new build, would cost between $400k-$500k. Taking into consideration that the median house value in Windsor Mills, MD is $154,300. Obviously, your project isn't a new build, but this might be an approach for you to consider in some cases (especially if this project needs all new systems).

Moving from this deal into mindset; remember that you started (many never do), so all you have to do is find another deal and keep this momentum going, so please don't dwell on this property just keep going and try your absolute best not to make the same mistake again. You use as a learning experience/outcome.

When we stop learning, we die.

Hope this helps, Kim. Goodluck. Thanks! - Ola

Thanks so much for this. "When we stop learning, we die". :)

1 Vote

Thanks guys so much. I really appreciate you giving me your honest opinion. I got the feasibility study back today and it doesn't look good. The numbers don't make all that much sense to me, but again.. I'm emotional about it. My husband and I wanted a forever home and it really was perfect for us. In the city, 3/4 acre, largest house in Windsor Hill and the 3 blocks around it are gorgeous!

0 Votes

All Forum Posts by: Kimberly H.

Kimberly H. has started 27 posts and replied 142 times.

Post: Advice Pls - Renovate,Pay Debt, Loan from 401K or Stocks

Post: Advice Pls - Renovate,Pay Debt, Loan from 401K or Stocks

Post: Emergency - Vandalism 1 day before closing

Post: Emergency - Vandalism 1 day before closing

Post: Emergency - Vandalism 1 day before closing

Post: I thought I was done with rookie mistakes

Post: I thought I was done with rookie mistakes

Post: I thought I was done with rookie mistakes

Post: I thought I was done with rookie mistakes

Post: I thought I was done with rookie mistakes