All Forum Posts by: Tim Lindstrom

Thanks for your insight @Mitch Coluzzi.  I planned to pay cash for the property,  and use a 401k loan to finance the rehab.  Then cash out refi in a year to pay off the 401K loan.

But, now i'm thinking I will look at less distressed properties until I am more seasoned.

This would be only my second property if I purchased it.  My first required very little work,  but the contractor I used said he could re-insulate, rehang all the drywall, and replace the subfloors for about 28K.  

I'd like to stay under 80K total for the house and repairs. I WAS  thinking after a new roof, and flooring added in,  I'm looking at about 5K left over to remediate the mold.

After reading your post @Shawn Thom ,  I'm NOW thinking this is a pass until I get more experienced.   I didn't even think about the fact that I probably need to replace the kitchen cabinets and bathroom vanities as well.

I looked at a property today that was listed in the MLS for 35K. I knew it would be a fixer upper, because comps in that neighborhood are selling for ~105K. The roof has a big hole in it, and had obviously been leaking for while. every wall in the house had mold on it, and every ceiling in every room was either coming down, or already down.

I was thinking if I had  a mold remediation company gut the place, I might be able to get a new roof, drywall, and flooring,  and get it rentable.

I'm wondering if anyone has ever taken on a totally moldy house,  and what their experience was.

ARV = After Repair Value

Thanks @Larry Overstreet I will probably reach out to you when I start looking in the Milwaukee area (probably a year or two away).  I'll be 49 in a few months, so need to get moving fast with accumulating properties.

@Brendan Spaar - The tenant has NEVER had his rent raised.  I don't plan on changing that any time soon.  I will reevaluate it when his lease is up, and it's time to sign my lease.  I estimate it will take ~3K to turn the house if/when he leaves.  8 years of no maintenance takes a toll on a house

@Elizabeth Colegrove  - Thank you Elizabeth.

I poked around your site.  You have some interesting blog posts.  It's nice to see that others have had success investing long distance.  

I'm originally from Milwaukee,  and was thinking about investing in some properties there (after I get my feet wet locally).    I have seen on BP that you can get inexpensive, high cash flowing, properties in the Milwaukee area.   

@Sibbir Noman - Thank you Sibbir.

I have a good feeling about this tenant.  The previous owners said the tenant only called once the entire time he lived there.  and that was to tell them there was water in the basement during a major storm years ago.  When I did the inspection,  I found out the dishwasher doesn't work.  The tenant said not to spend any money on it since he rarely used it anyway.   

Who doesn't want a tenant that keeps to himself, and only calls when it's something I need to know about the house.

I plan to do an annual walk through to check for leaky, or broken things, which is more than the previous owners did.

I have actually been a member of BP since July,  but this is my first post.  I listened to all the podcasts (some twice), read the free books from BP,  and bought Brandon Turner's book on investing (title is too long). 

I have been toying with buying a property for several years,  but was afraid to pull the trigger.  Unfortunately that caused me to miss the sale of the century on housing,  but there are still a few good deals left

I plan to start with SFH's and reevaluate after I get a few under my belt. I just closed on my First property last week. It is tenant occupied, which is good, but scares me a little. I didn't screen the tenant, but he has been there for 8 years, and has 10 months left on his current lease. If he pays on time, I'd love to keep him another 8 years.

I think I got a good deal.  I payed 70K for the property,  and it is renting for $900.  this is about $100 below market rent,  but if it keeps the tenant in place,  I'll let it sit below market.