All Forum Posts by: Ed L.

I think 50K might be low on this one also....These Old Old houses can gobble up money faster than you can feed them.

My biggest concern is the Front Porch and the Cost to either gut the paneling or just go over it with drywall.

Roof will cost about 5K
Central heating and Air Will Run about 6K
Interior Paint (Once Drywall Finished) 3K
Bathrooms 4K
Kitchen Counter & Cabinent Doors 4K
Kitchen Appliances 3K
Refinish Wood Floors 2K
Lights/Fans 2K
MISC Plumbing 1K
Paint Exterior 3K
Replace Rotten Boards 2K

Big Unknown is The Porch & the Cost to Put up & finish the new Drywall. I think those two projects will probably run 20K+

I checked on the Tax Credit and it all seems pretty straight forward. I believe everything will qualify except for the Appliances.

I think the city will just be glad to have someone bring the place back.

I'm going to revisit tomorrow with a GC. I'm curious what kind of numbers he will come up with.

YAY!!!! I finally learned how to post pics on the forum!!

I was browsing on Craigslist over the weekend and a fella posted ad for a duplex in the Historic District.

He was very forthcoming about the property. His Ad said OLD ugly duplex needing a total renovation. Asking Price $9,900....

I love cheap stuff so I went by just out of curiosity. My wife was whining and it was hot out so I didn't even bother getting out. The front porch looked like it was ready to fall off. I assumed the foundation was probably infested with termites so I didn't make any further attempts to inspecting the house.

This morning my home inspector who also has rental houses called me up about a great deal he saw on Craigslist. He said the house looked solid but the porch would need a complete tear off and replacement. He said it was too much for him to swing at the moment.

Based on his analysis I called the owner up to see the inside this evening.

I was pretty surprised to find the interior was solid. Original Wood floors were in great shape. The Layout is very functional usable.

Foundation was shockingly level for a 100yr old house. One sag in front of a fireplace visible in the Photos.

The roof is leaking in several locations.

Apparently the house originally had 11-12' ceilings. At some point they did a drop down ceiling to about 9'. The suspended ceiling had collapsed in a couple places and the original ceiling looked to be in good shape. Looked like T&G wood ceilings.

The Units each have 1Br., Living Room, Kitchen, Full Bath, and another living area. They should rent out for 450-500 each once the place is renovated. It's on a really nice historic district street. I guess it would be called a transitional neighborhood.

The Owner said that it is in the Historic Registry and the renovations would qualify for up to 50% tax credit??? That would greatly help bring it back to life.

My questions is...

I'm wanting to see what you all think the following Repairs would Cost.

1) Replacing the Front Porch
2) Replacing the Roof (House is 1,600 sq/ft total) Felt alot bigger.
3) Interior Gut Down & Re-sheetrock.

If I were able to put 50K in Renovating the place + 9K Purchase price it would probably bring 100-120K on the retail market.

The Tax Credits could sweeten the Deal. But I Hate to base anything off government funding at this time.

I'm about to start doing the same thing. Look up" Driving for Dollars Investing " on Google.

Very good post here on BP that explains how to contact vacant property owners.

My office sits on 1 acre of land. There is a sizeable amount of grass out front and on behind both flanks of the office. I would estimate there is 1/4 of an acre in level grass.

My lawn/handyman cuts it for 30.00 per cut. Weed eats, and leaf blows the parking lot.

He charges 50.00 per cut on my personal home and a flip I have that is close by. They both are on 1/2 acre lots.

He cuts all 3 every 2 weeks without any hassle.

Prior to this guy I used to cut my own grass at home. For 25 bucks I could barely afford gas, blades, and weed eater string.

Scott,
I definitely see what you are saying. Think I will talk it over with my wife some more and hopefully come to a conclusion over the weekend.

Little BS like this almost makes want to quit everything and just live off the government lol...

I just can't understand people who feel that others should pay for their misfortune.

Dumb question, but do I have to disclose that I am a agent for my letters and notes used when driving for dollars??

Ned,
That's my problem. I'm a Realtor and know exactly what the houses will bring. The problem is everybody thinks there property is somehow special. Or they severely underestimate the amount of work needed to actually sell the property on the retail market.

After rehab I still like to be 5-10% under market value to sell fast.

I guess it's just a numbers game. Submit 10 offers and maybe 1 will be accepted.

I've read alotttt on the subject and I see people giving a list of things to try, but I would like to know what is working and to what degree.

I would really appreciate it if some members were to give some figures on how many deals a year they get from each source.

Ex.
So far this year we have bought.
4 Houses off the MLS (All REO)
204 Acre parcel of land off the MLS (Distressed Sale)
12 Acre parcel of land via word of mouth. (Distressed Sale)
180 Acre parcel of land. Broker we know basically wholesaled it.

That's what's working.

I'm trying other methods. I put a ad on craigslist about a week ago saying I buys houses. Not a single response. Not surprising to me really. Even if I did have 10 people respond. What are the chances that one of those people would have something worth buying? Then what is the chance that they would be willing to sell it for a cheap enough price to justify the purchase?

Based on my experience that was a unsuccessful method in my market..

I think my next trial will be "Driving for Dollars"

Once you make contact with the owner what is the next step. Ask about price? Ask to see do a walk through?

I don't want to wast time with a person who is wanting retail value for their distressed property, but I can't make an offer without knowing the condition of the interior.

Thanks everyone for the response.

It just seems that by offering to pay I would be voiding the Indemnification clause of my lease agreement. Once responsibility is taken and I pay for the medical bills it could possibly lead to a whole lot more problems. Future infection, Nerve problems, etc etc.

She never asked if I would pay for the bill. She asked if my insurance would and they won't. By volunteering to pay it just seems like I would be opening myself up to a future filled with additional claims.

At this time I have told her that my insurance wouldn't cover the cost. She seemed fine with that.

Here is the Indemnification clause from my lease agreement. I transcribed it from zip form so there might be some errors.

INDEMNIFICATION: Lessee hereby covenants and agrees to save, indemnify and hold Lessor and its insurers, agents, and employees harmless in the event of any accident, occurrence, injury or loss to lessee, lessee's family, co-occupants, employees, invitees or guests, and to also defend, save, indemnify and hold lessor and its insurers, agents and employees harmless in the event of loss to such persons or anyone due to burglary, theft, robbery, fire, wind, rain, or other causes whatsoever. It is understood and agreed that lessor and his insurers, agents and employees, shall not be liable to Lessee, Lessee’s family, co-occupants, friends, guests, invitees or any person for injury, damage or loss of any nature which may occur at any time on account of any defect in the leased premises, the improvements therein and the appurtenances thereto, whether such exists at this time or arises subsequently hereto an whether such defect was known or unknown at the time; that Lessor, his insurers, agents, or employees, shall not be liable for any injuries or damages to person or property sustained by Lessee, Lessee's family, co-occupants, guests, friends, servants or any other person upon the premises or any damage to any person upon the premises or for any damage to any person or property by or from any boiler, plumbing, gas, water, steam or other pipes, sewage or any gas or electrical fixture or appliance or the bursting or leaking thereof.