All Forum Posts by: Stacy Weng

Thanks @CK Hwang, appreciate the advice and insight! 

@Alfie Bartley, maybe I'm misunderstanding, but wouldn't an ARV of 55/60/65% be even better than 70% where it'd be a no brainer at that point?

@Kris Swierz, is your $100K profit after all fees (closing costs, real estate agent commission, holding costs, etc.)? While that's an awesome profit from a single flip, I'd think that'd be hard to achieve on a regular basis? 

On a similar note, would that same concept apply to how often and strictly you follow the 70% ARV rule? While the 70% ARV seems like a great general guideline to follow, I've found it very difficult to get deals that fall under that rule in ultra competitive markets. Does it make sense to be flexible with it, or is that just opening myself up to potential problems?

Thanks everyone for the input! The water heater is only a few years old, and I never had any problems with it when I lived there prior to renting it out, which is why it being defective never really crossed my mind. I'm not a water heater expert obviously, but I had heard that setting the temperature too high when it's also hot out could cause the water heater to get too hot and overheat, but maybe I was misinformed. 

So I guess in this case, I'll just leave my insurance to handle it.

I have a condo that's currently being rented out. A couple months ago, my renter contacted me saying the floor under the hot water heater was wet. Turned out it was b/c the water heater temperature was too high and the steam released from the relief valve made the floor wet. I told them to turn the water temp down and advised them to not keep the temp too high, esp since the weather was getting warmer.

This past weekend, they come back from vacation, and there's water gushing out of the relief valve, which ended up severely damaging the unit below since they were away. At first I thought it was just bad luck that the relief valve happened to break all of a sudden. But when I sent a plumber out to get it fixed, it turns out that the water heater temp was on high, which caused the water heater to overheat and burn out the relief valve. 

Since I had already advised my tenants to not keep the water temp on high, esp during the summer months, does this incident make it their negligence? I already started a claim with my insurance, but I'm wondering if this should be their responsibility knowing now that it was b/c they had kept the temp too high when they were advised not to?

Would this fall under renter's negligence or does it all fall on me? 

Thanks!

Stacy

Thanks @Ben McMahon, I will definitely give this some serious thought and reach out to @Ben Ferri if we do decide to try out that area. I'm not familiar with the area or market down there at all, but based on your experience, are there specific areas in the Shenandoah Valley that you recommend looking into? Would Winchester be the main area? 

@Account Closed I did some researching in the Winchester area last night and it looks like there are definitely some opportunities there. Making the drive to check on progress wouldn't be as bad if I were more experienced with this, but being my first flip and knowing myself, I'd probably want to check on the progress almost every day! LOL!

 Thanks Theo! Can you share your experience with investing in the Shenandoah Valley area? Have you done buy and holds or fix and flips? I'm interested in doing flipping, so my main concern with investing in an area that's farther away is that I won't be able to check on the progress as regularly as I'd like. 

 Sorry, maybe I had my loan terms mixed up. By conventional loan, I meant an regular investment loan through a normal bank, with at least 20% down, instead of through private lending. Can that be used in conjunction with other private / hard lending?

Good to know... regular conventional loans don't have that restriction right?

I'm not sure if this is even possible, but has anyone ever tried to use a conventional loan and hard money together for a deal? If I'm considering a property to do a flip, can I do a conventional loan with 20% down, and then use hard money to finance the rehab costs?

 Very valid point!