All Forum Posts by: Stephen Witkowski

In my experience, the Zestimates have been valuable for getting a quick ballpark range, but not reliable in a proper analysis. They're probably correct with a 10%-20% range of the actual value of the home.

I bought a property and it appraised for $182,000 (which was under asking). The RedFin estimate (not Zestimate but similar) had it at $163,000 a few days ago, and there have been no substantial changes to the home since I purchased it. While you might be able to "explain" why that estimate was made, it's not really an accurate estimate.

These algorithms use everything they can to estimate the price. Yes, they'll use nearby homes of a similar size, but they'll use your photos, the description, and any of the features or amenities you add. If you want to pump up the Zestimate, it'd probably be helpful to include everything you cna in the listing.

As @Aaron Poling mentioned, it's a case by case decision, and he gave some great tips on how to evaluate the roof yourself.

If I were in this situation, I'd rather replace it before a tenant got in there and started to experience a leaky roof.

@Taylar Caraway - you can file the claim. However, remember it needs to be approved (which I assume is based on the seller's insurance).

I just finished reading another story of a buyer who purchased a house that had the roof installed improperly. He had already bought the house and his insurance wouldn't cover it. You're in a different situation since you're in your due diligence period, but it's something I think you should keep an eye out for.  

@Svend W. - I'd take the counter offer. From what I've read, $5,000 should cover the a roof replacement if it's relatively flat. Maybe you can negotiate some other non-monetary items instead of trying to raise the price back up? If I were you I wouldn't push back up to the $10,000. As @Bill B. mentioned, this gives a chance for the seller to reject your offer, posing a risk. Plus you could build some good faith with another investor in your area.

@Brian Ploszay I just got finished reading a chapter of J Scott's Book on Estimating Rehab Costs. He mentioned that it's ill advised to add another layer to a roof; you could be adding weight onto a roof that can't handle it. I imagine in Chicago there's a lot of weight on the roofs with the snow, so it may be different in that location.

In what scenarios would you add another layer onto a roof, as opposed to replacing it?

@Scott Smith just covered this in detail at a meetup I was at last night - you can check out his podcast on BiggerPockets for more information about asset protection. 

As many have mentioned here, you should have an umbrella policy regardless of your LLC status. However, from what I understand you shouldn't buy things in your name if you're serious about asset protection.

Since you're in Texas, read up on forming a Series LLC for each property - it's free of charge, has barely any paperwork involved, and will provide a ton of protection for you. Instead of suing YOU or the LLC that owns all your properties, a tenant can only sue that individual child LLC and will only have access to those assets (IF a lawyer decided it's worth their time to pursue it).

Seriously, listen to that podcast or check out Scott Smith's Legal Solutions for some help on this.

Hi Justin - Welcome to BP!

If you haven't already, read up on the BRRRR method. This is a method that will allow you to invest in a property, potentially without putting any of your own money into the deal.

On top of that, read @Brandon Turner's book on Investing With No Money Down. You don't need money to get started in real estate. Thinking that you need to save up money for a down payment - and there's no other way to begin - could hurt your progress in the long run. In fact, many investors hit a wall when they run out of their own capital, and need to find outside sources to fund their deals.

As always, you can talk to friends and family and try to raise some money for a deal, but expect to pay them back in interest. 

In the mean time, save up as much as you reasonably case, and keep learning. Attend meetups, read books, have lunch with some agents. This will expose you to others in the community and you'll be able to learn much more quickly - and who knows maybe you'll be able to partner on a deal!

Best of luck Justin!

@Victor Steffen I'm just starting out so I'm not sure of an answer to your question. @Aaron Gordy is a real estate broker with his ear to the ground in Austin - he could probably help you out more than I can right now.

Hi Victor!

Happy to have you moving here! As Kris said, there aren't too many quad's in Austin. There are some duplexes here and there, but it's been difficult finding larger properties. However, Killeen has a lot of larger properties like that, but you'll be sacrificing rents (and it's about 70 miles from Austin).

30-40 minutes from center city (downtown) covers most of the city. You'll start getting to other towns after 40 minutes. With your budget, I'd look in North Austin, places like Round Rock, Georgetown, Pflugerville, and Leander. You could also explore South Austin, but I'm not too familiar with that area to give specific recommendations.

@Andrew Solomon - Welcome!

I'm happy to see you here!

From what I've heard from others, getting into real estate is like flying a plane. It takes A LOT of energy when you're first getting off the ground, but after that it gets easier.

Best of luck to you - I hope to see your deal diary very soon!

@Mike Cumbie thanks for the feedback! So I should be most concerned about how I’m using the agents time, and displacing any current tenants.

And trust me I won’t be advocating for breaking into vacant houses on your behalf!