Real Estate Agent · Pineville, LA · Member since 2016 · 61 posts · 34 votes
Hello everyone, so I am looking into my second rental property. The numbers look good as far as cash flow and Cash on Cash return. My question is concerning the repairs and potential out of pocket expenses in the future. I know there is not right answer but just looking for feedback. The only major issue is the roof. It's old and in terrible shape as well as decking and fascia rotting. However, there are no active leaks at the moment. The other issue is that it may be an asbestos roof. I have already called my roofer and he should be able to tell me more and give me an estimate on the repair.
Should I continue to analyze and get more figures or should I turn and run if it is indeed asbestos even if the deal has great numbers? I can also post numbers but I wasn't sure how necessary that was. I'm a newbie to posting and answering questions. Any feedback would be great!
Specialist · Houston, TX · Member since 2015 · 1k+ posts · 1k+ votes
10y
I think its important to have what you will and will not accept written down and then follow that model. Meaning if you want a certain ROI will these repairs not make that ROI happen? If they will not then it simply does not fit your business model. Or the price should reflect the issues to be able to get the ROI you need. Investing becomes a simple math computation not an emotional one of seeing multiple issues and wondering if it is or is not a good deal.