All Forum Posts by: Account Closed

I need to put a new floor in a rental unit over ugly ceramic tile. Only problem is that the tile was laid over black mastic which contains asbestos. The cost to have it abated is $2250. I am looking for alternatives. Can I put a new floor on top Possibly with an underlayment or thin set to smooth out the grout lines first? I would like to do a new tile, but a floating floor would work too. This is in a kitchen and living area, so it could (probably would) get wet. Tile would be best. This is only a 20 X 20 area, so very small.

That would be great @Jon Klaus if you have time. The property is in Lewisville so it's a bit of a hike for you. Maybe I could buy you lunch for your time. PM me if you want.

@Jeff Kehl I do like your idea do getting a few ready to go quickly. Only problem is the insurance. I don't have coverage for occupied units right now and I need at least 25 - 50% occupancy (I think) to get a landlord policy in place.

You guys are tough.

I got a chance to walk through all of the units today (without all of the previous tenants' junk from wall to wall) and got a good luck at everything. The seller did a great job of cleaning the units and leaving them completely empty.

I am pleasantly surprised that all of the HVAC systems are fairly new, as well as the hot water heaters. In addition, it looks like I can salvage 4 of the 9 kitchens without replacing cabinets. I could probably get by without replacing flooring in 4 units. One of the units, I only need to tile the bathroom and kitchen. Just saved myself $10K in cabinets and flooring.

The only negative surprise I found was that the irrigation system is running off the electric in one of the units. I will either need to put it on a separate meter or somehow pay the tenant for use.... or change out the timer with a solar or batter powered timer. Not a big deal either way.

All of the electric panels look new. The plumbing needs work under all of the sinks and toilets, but I was budgeting to replace all of it anyway.

The exterior is in MUCH better shape than I thought. Only need to replace roofs on 4 units. The other 5 are in good shape.

So, I am feeling better already. Thanks for all of the encouragement... and the reality check.

@Account Closed I appreciate the advice. I don't think the situation is quite that bad that I need to pay someone to help me through it. Plus, I can get all of the advice and answers I need right here on BP.

Although I have not owned a MF in the past, I do have 10 years experience in real estate and own several other rental properties (SF and commercial). And have even done a very successful flip, which I sold with owner financing. I have experience in remodels and I am 95% sure that my estimated costs are on target. My budget includes overages for unknowns and I will be working with individual contractors that I have worked with for years on other client projects and my own. The only difference now is that I won't be paying a GC, I will be acting as one myself, which may require that I temporarily put my real estate sales career on hold, but that's ok with me.

I could probably rent the units as is if I wanted to take a little less rent. All of the units are in livable condition (except one) and rental properties are in high demand in the area.

@Account Closed not so funny! You must have been in my thoughts all weekend. I think I've come to the conclusion that the worst thing that can happen is that I turn around and stick a for-sale sign back in the yard and call it a day. But I've waited 6 months and even though my GC left me and I am starting all alone, I know this isn't rocket science and I have enough contacts in the industry that I can make some calls tomorrow morning and all will be ok!

Thanks everyone, it's been a stressful weekend as I am feeling a little overwhelmed. But you are correct, it will be good in the end

@Account Closed I am an agent and found the deal in MLS. I did have to put an offer in without first seeing the interiors because there were quite a few interested buyers waiting for appointments. I just used my feasibility period for viewing and due diligence.

Hi @Scott Lunn I am an agent in the DFW area. I can help you get set up with some daily MLS feeds of foreclosures and REO listings, which would be a good start for finding fixer uppers. Frisco is a really hot market right now. The good deals go fast! Feel free to contact me via PM.

Thanks everyone for the encouragement!

@Mark Ferguson I listened to your podcast yesterday! You give me hope :)

Sure, @Luke W. here are the details:

B+ area (C property.... because it needs a lot of TLC, not because of previous tenants)

9 Units

Purchase price - $373,450

Estimated Rental Income - $9625 per month (all units are vacant now for the remodel)

Maintenance - 15%

Property Management - 7%

Insurance - $6500 per year

Utilities - $200 per month (light pole, irrigation)

Landscaping - $250 per month

Ongoing capital expense - 10%

Taxes - 2.19%

Estimated Vacancy - 5% (after 6 months)

Estimated Rehab Cost - $125,000

Estimated Time for Rehab and Filling Vacancies - 3-6 months