All Forum Posts by: Damian Howard

What type of investor I want to be?

So the Journey begins. I was able to view a multi-unit(4) last week and wanted to share my experience. With help from a friend realtor, we were able to get access to the 4 units. One of the tenants was home and didn’t know why we were arriving. The overall 4 units were not in bad shape, updated appliances and updated other stuff. Income and expenses on the surface seemed to be in line but this conversation is about what I am looking for as an owner. WhatI felt walking through each unit is that although they were in decent shape, they didn’t seem to be set up as a place that you would want to stay at for 6 months to a year or longer. The 1 studio apt was set up sort of like a hotel room. You had a kitchen, bathroom, living room with the mattress on the floor. 2 of the units were not occupied and the 4th unit although was a 2 bedroom that didn’t scream let’s stay here a year. Again I stress to you I can overlook those thing but I would think that although in good shape(the units) I would feel as soon as (one) moved in that this is just a temporary location for me due to whatever hardship one is going through.

Another issue is that the backyard area is a shared location for another adjoining building that has 4 units in it. That backyard had old 40 ounce bottles of beer in the backyard and other debris/trash that has been there for some time. I stress again that view doesn’t deter me because that may be the type of business that some real estate investors are getting into. In this case with the adjoining building, I don’t want to be in a position where you or the property manager is managing those tenants as well when you only signed up for 4 units…. Again, the front of the building seemed to be in good shape and had to maintain a certain look due to the historical society but nothing in that building due to the layout seemed to scream I want to be here for a long time. Avg unit in that building was priced at about $46,000 and it the city that I’m looking at you may be able to get a $50,000 single family home to rent out. Just walking into a couple of units may have changed my mind on what I want to invest in.. Don’t get me wrong, I will be visiting other multi-units but unless it’s a deal I can’t refuse I will be looking at something that screams “ I will be here for a while.”Hope this helps…..

Thanks Justin.

I am on the same page. The funny thing is that there isn't much to consider in my senario, no question should the bathroom be replaced- capex expense.  Hopefully it's something that I don't have to worry about over the next 15 years. I have another contractor coming out over the weekend to take look at the bathroom as well... I could probably do both bathrooms if need be, for the price I was quoted....

Thanks Justin.

Not Yet, I should of taken pictures. That bathroom is only about 6x6....

Hi Glen,

This rental property is off of Baynard and 21'st which is a good area!

Please see below what I was dealing with regarding the estimate..

A. Demo Work

--remove and disconnect all plumbing and supply lines (down to crawlspace)

--remove all wall covering (plaster) from wall and ceiling

--remove flooring down to subfloor (any unexpected damage and repair

on subfloor will be an additional charge)

B. New Work

1. Insulation

--furnish and install all new wall and ceiling insulation

2. Walls

--furnish and install green board on walls and ceiling

3. Tile

--furnish and install wall tile over Hardi Board in shower area up to ceiling

4. Electric

--furnish and install

--one 110V GFI outlet

--one 6" recessed ceiling LED light

5. Plumbing

--rough in all drain lines and supply line from crawl space up to

bathroom (drain PVC, supply PEX)

--furnish and install

--one Sterling shower pan 60" x 30"

--one shower door

--one Kohler Cimarron elongated comfort height toilet

--one Kohler Pedestal Sink

--one Kohler recessed medicine cabinet

--one Moen sink faucet

--one Moen single handle shower faucet

--Accessories:

--one Moen towel ring and towel bar

--one Linen Cabinet over toilet

6.Trim

--furnish and install 2 1/4" colonial door and window trim

--furnish and install 5 1/2" colonial baseboard

7. Windows and Door

--furnish and install one new replacement window

--existing door will remain

8.Paint

--furnish and paint walls and ceiling with one coat of primer and

two coats of eggshell wall paint

--furnish and paint all wood work with 2 coats of semi-gloss trim paint

9. Clean Up and haul away all construction debris

Thanks Guys!

I was thinking the same thing. I have another gentleman/company to come out on Saturday to take a look at it.  If you guys have any recomendations for the Wilmington Delaware area,  Please PM with the information......

Awesome.

Don't want to bog you down with all the details but here is what I am lookinng at.  I have a 3/2 and I'm looking to replace the bathroom on the main floor next to the kitchen which is not the main bathroom. It's old and outdated and the renters only use it as a toliet and to wash their hands because it's simply is not in the best conditon. There is another bathroom upstairs that is fine and that is where they take their showers. At a quote of about $16,000 should I replace that bathoom downstairs? The reason I ask is because with my net rental return it would almost take me 2 years to get that money back or do I just leave it as is because it does serve a function? I would be replacing everything, Shower, floor, tub, subfloor, pipes that lead to that bathroom.

Thanks.

This looks like a great pick up.... Congrats ..

I'm looking at a couple of multi's in Wilmington myself. Have you seen any that looks to be in a fairly decent neighborhood? Trying to stay away from the East side of town at the moment though. Looking at a door price beneath $50,000 per unit.

Hi Bigger pockets, Homeowner across the street is having work done on the house since the tenants reported mold on the walls. Well, they didn't pull permits with Charlotte County and received a stop work notice today. Their response? Attempt to evict the tenants on the spot despite they were current on rent. Let alone the other laws regarding eviction. People ...

On the heels of Rick Beno, the city makes you register the lease or leases, I believe around $50. According to the website if you are an out of state investor, you must have a registered PM with a business license registered in the city of Wilmington. That's important because of eviction laws....There seems to be some pretty good deals in the city on both SFH and multi's.. I'm looking to buy another rental in the city myself....