All Forum Posts by: Victor Evans

@Mike Reese , great job crunching those numbers... Here are my thoughts.

1. Assuming that the structure and MEH are in decent shape, the property is priced very well.  So trying to knock 30K off the list price will be difficult especially since it looks move-in ready from the photos.

2. Again, judging by the photos, I don't see the place needing 25K worth of rehab, unless you were thinking of adding additional sq ft or bathroom(s) to increase the overall value of the property.

3. increase both cap ex and repairs to 5%.

4. vacancy of 8 to 10% is the range that I typically use. 

5. I see that you have 10% for Property mgmt... good job.

6. I would look for better loan interest rate. 5 to 6% from local banks.

7. You might want to take another look at the property tax... the total (city+county) tax should be closer to 2.8k/year.

8. Assuming 0% appreciation, the target ROI and cash flow is not that exciting.

good luck!

-V

@Brad Noe , great post. Thanks for sharing. 

@Will Driscoll , reverse engineer the down payment, closing, rehab cost, etc.. by identifying a property that you are interested in purchasing with target cash-flow / ROI and use the rental calculator to determine the necessary funds.

@Fahima Hilal , shouldn't we report people like this to the authority?

@Tj Estes , this is only my opinion so you'll have to seek out the advice of a structural PE in your state. The slab on grade concrete foundation is designed for compression and uses minimum rebar to control shrinkage and temperature cracks. From the photo, the exposed rebar appears to be welded wire fiber (WWF) which is typical in slab foundation. Raising the slab and placing it on top of piers introduces bending and one-way and two-way (punching) shear into the equation, which the slab was not designed for. Furthermore, I doubt that the pier is physically tied via post-installed anchors so there's no lateral resistance or moment transfer. I beg that you don't buy this POS since the only fix is to either bring the slab back to grade or throw crap tons of steel members underneath the concrete and create a diaphragm to transfer the loads correctly.  If you have any engineering related question, feel free to ask. 

@Raeshelle C. , I'm more of a numbers guy and usually have them do my talking.. You seem to know quite a bit about buy-and-hold, MFH, and 1031 exchange. If you want to analyze a couple of REI deals and share it with us, I'm sure people on this forum would be glad to reviews the numbers and see whether it aligns with your investment strategy.

Wow... thanks for sharing :)

Thanks for the photos @Luke C. . Now I understand what you meant by bowing. You have an out-of-plane bending in the CMU-wall. I don't see any cracks propagating in the walls but I would be concerned. You most likely have a lateral load applied perpendicular to the CMU, perhaps by expansive soil?,  which is causing the wall to deflect. Your repair should look something like this. 

Photo from OhioBasementAuthority.

@Luke C. ,Can you share photos of the foundation cracks and inspection report? Typically concrete cracks are considered to be hairline up to 1/8" width and considered negligible. I'm concerned about the "bowing" of 1 inches.. First of all, I'm not quite sure what you meant by that.. but if part of the concrete foundation has cracked and rotated in-plane to the basemat, that's a red flag for me. I would either get a structural engineer or foundation GC out there for a quote and let the seller and the agent know that THEY have a problem..

@Account Closed LOL. my Hero :)