All Forum Posts by: Son D.

After the tenant left, my property manager quoted me over 11k+ to get it rent ready again. This was more than what I had received in cashflow from the past tenant. I would try to not go back in time to restart my quest to breakeven. I decided to find a way sell. Man talk about buyers lowballing you. They were giving me impossibly low offers. However, I was able to hold out until I got the price I wanted. The sale price was less than what I had paid for purchase + "rehab". However, considering the cashflow I had received plus the overly generous prepaid city tax account that the previous sellers left me, I was about breakeven. This was what I was aiming for. I found out later that I should have aimed higher but that's another story.

This is the end of my relationship with a Morris Invest / Oceanpointe property. I like to thank @Todd Burton and the team at Evergrow for helping me manage the property these past couple of years. I'd recommend them to anybody asking for a PM in Indy and would work with them again if I have the chance.

@Steven Lewis what a good problem to have. I'd put the extra cashflow into paying off any debt that I have, which may or may not include the mortgage on that property (up to you). Otherwise you can save it up for the next property or whatever investment you're interested in.

@Muritala Olanrewaju when capex hit is an estimation. Realistically it could break down day after you close or run for years to come. I'd consider residential in the 2000s to be newer. Just add the cost of replacement into your purchase price to see if deal still works.

Seems it's time for another update. Tenant paid on time and in full until lease expired at the end of February. This would be my first vacancy since owning this property. I'm weighing my options. Meanwhile, I found the list of rehab items that MI/OP said they were going to do post-purchase but never did. Looking back now i realize how foolish i was to have believed these prices.

Roof repairs 800.00

Electrical upgrades 675.00

Plumbing upgrades 700.00

Siding repairs 675.00

Foundation repairs 875.00

Window/ trim upgrades 1075.00

Water heater 650.00

Furnace 1500.00

Gutter/ downspouts 650.00

Fascia, soffit repairs 400.00

Total 8000.00

Personally I'd try to find an inspector has a deal where the second inspection they will charge only a fraction of the first time because all they do is follow the checklist of what needed to be done and that's it. That being said, did you and seller go over checklist and agree upon what they will definitely fix? If yes and they didn't then chances are you should move on. You can try to hear them out to see if there's some kind of bad circumstance. Even then why would they tell you to do a second inspection knowing full well the problems weren't fix?

@Edward Kiser You spent $2000 to live in it for a year with a free remodel paid by insurance company? Now it's cashflowing on it's own too? In what way is that considered overpaying? That's better than most non-house hacking deals. I see you're scaling up on your house hacking strategy too. Congratulations man! Wish i could've started out this way. You'll do very well in REI keeping this up.

@David Janosik I've bought turnkey properties myself, including 1 in kansas city, and use bank appraisal as a hedge. They've always came back "magically" exactly the same as selling price for me. Perhaps due to current conditions, banks are hedging themselves as well? I don't know. 10k under selling value would be a huge red flag for me. Are all Cap Ex items redone during renovations? It's MAYBE worth it if you're going to own this capex free for long term with steady monthly income. Rents don't increase much in this part of the country and expenses creep up on you so it'll be years before break even point.

Does your contract with the turnkey provider not include an appraisal or loan contingency? If not, ask the turnkey company if the $2500 can be used as earnest money for another property you buy from them. $550 bank appraisal is spent no matter what but that is small compared to 10k.

Also i plugged in your numbers in my calculation but can't find that cashflow. I know it's different for everyone but I just want to caution that you may want to be conservative with your numbers.

@Elizabeth Thompson have you thought about just taking out a HELOC, which is no charge to do, to buy a property? You can then finance that property and take your cash out. Of course you would need to calculate payments for both mortgage of investment property and HELOC interest of whatever amount you still have in that property after financing it. Buy a good enough deal and it' work better than what you're planning since you won't need to reset your primary mortgage and restart the compound interest.

Congratulations man! you jumped big! I'm still here looking for small residentials :)

I will start out by saying that I, unlike you fine gentlemen who are far more experienced in REI, do not know who Kathy Fettke is, other than that lady who i heard on a podcast once. I have also not heard her on MI show as i have stopped watching his contents for a couple of years now. However, judging by the comments on this link, i think we should stop giving her flack for appearing on MI site. There have been others who appeared on MI show or had CM on their show. We messaged them privately to tell them who CM was and the videos were taken down or requested CM to take his video of them down. I don't remember seeing her on numerous threads on this site so i assume she hasn't been following this story's to the minute update for years like we have. Her reasons for appearing on MI seem like the same reason people would appear on BP podcast. CM, his wife, and his mentor each had a podcast on BP. Those were taken down. Kathy has said that she would request her appearance on MI be taken down. I think that is good.

@Kathy Fettke I know for a fact that he's had problems in at least Florida and Michigan as well. Same exact type of properties. Same issues.

@Tyler Jahnke Was CM attentive to the issues of your property? Please elaborate.