All Forum Posts by: Todd Wheatley

@Michael Noto, that makes total sense. Unless there is disproportional upside why assume the added risk. Thanks!

Thanks for the experienced opinion @Vasyl Magura!

Thanks for the input everyone. It’s good to hear these opinions and we will factor them in as we near the end of our due diligence period.

Hi @Josue Vargas,

I appreciate your response. No we don’t have experience with any foundational or structural issues of this magnitude. I’m certainly not trying to write of the significance of foundational cracks I just meant that if the cost of repairs can be fully negotiated into a revised offer than it wouldn’t be impact the economics of the deal.

From disclosure documents the settling has been reported as pre 1990 and as you saw in the pictures it’s been patched but never addressed appropriately. I take this with a grain of salt since it’s being reported through a minimum of 2 people.

Appreciate the alternative perspective. It’s certainly a serious issue.

Hey BP,

My wife and I are under agreement on our first out of state single family property. We’ve established a team on the ground to help us with due diligence. We are looking for advice from experienced investors that have dealt with structural or foundation issues. This property is located in Ohio and was built in the early 1950’s.

At this point I’m not overly concerned as I see this as just another “problem” that needs someone to come solve it. If the numbers ultimately work then I think the deal is still worth pursuing. Am I being overly optimistic or naive about the severity of this type of issue? I would love a devil’s advocate perspective, especially from those having worked through similar types of issues.

We have a foundation repair specialist visiting the house early this week to review and estimate repairs. Ultimately we may need to renegotiate our offer price based on these new estimates. Please chime in with your thoughts on that being the right approach or steering clear and finding another property. Thanks all!

Detached Garage

Basement Floor

Back Patio

@John Kennedy I may have this incorrect but when entering your numbers in the BRRRR calculator if you uncheck the "cash purchase" option and then select the corresponding down payment that you would be paying to supplement your HML (e.g. 35% down if the HML will loan on 65% of cost). Then enter your HML interest rate (e.g. 10%). The enter your refinance details that you expect once your HML/bridge loan is ready to payback. If you enter numbers in this way you should see your monthly pre-refinance expenses take into account the HML holding costs factored in. Again, I might be mistaken but I've been using this method when comparing HML vs cash deals on my properties of interest.

-Todd

Thanks for the welcome @Dmitriy Fomichenko!

Thanks @Justin Windham!

The alerts function is something I’ve been meaning to dig in to more! Guess that’s my homework for tonight :)

Thanks for the warm welcome @Aaron Belt!

Hey BP community!

My wife Jessica and I just joined BiggerPockets. While not new to real estate (we’ve owned several homes) we are new to real estate investing. We are actively seeking to build a portfolio of single family buy-and-hold rental properties both here in Massachusetts as well as with our new partners in Cincinnati, OH!

We are always looking to meet new people and network with like-minded folks so if you are in either of those markets (or even if you aren’t!) and would like to connect to share ideas or just otherwise network please “connect”, we’d love to chat!

In the short time we’ve been BP members we’ve found the forums and community, webinars, podcast, and analysis tools incredibly valuable. It’s good to be here and we look forward to connecting with some of you soon!

-Todd