All Forum Posts by: Adam Craig

I know this will be very market specific but I have a house in a Cleveland suburb listed at 55K. Seller is calling for best and final offer (multiple offers) and I am going up to 61K.

I have gone above asking before but never more then 1000.

I know the street the house is on very well and ARV is easily over 100 and it needs about 20K worth of work.

How much have you gone above asking and is this too aggressive? I know my offer is bold but I have lost houses like this in the past and I know the numbers still work well at 61 very well. Why do agents list houses like this? Do you think they get a better price with this strategy?

How much are you guys paying for LABOR on a full bathroom remodel. I have a guy that works way cheaper then he should and does them for about $1300 labor which I know is crazy so I am trying to get a grasp on reality when I start shopping rates again.

For a small full bathroom we typically do a complete gut except we keep the tub and reglaze it -  

Labor usually consists of ceramic tile shower surround/tile floor - new toilet,light,mirror,towel bar,faucet, shower head - trim and pain

I know this is region specific but just interested to hear others

Me and my HVAC guy had a falling out which was unfortunate because he had some solid prices and I always get a working AC in my rentals.

I was getting most of my AC unit replacements for around 2200 and new AC systems for 2500. I am getting ready to shop it again but are those decent rats for low level ac systems?

What are you getting them for?

Anyone know of any banks that will do HELOCS on investment properties? I have one with Chase on my personal residence but I am looking create as many financial reserves as I can.

I already refinanced all my properties but some of them have decent equity because I didnt take the max refi so that they would still cash flow.

My commercial lending bank cut me off at 21 properties. They said they acquired a bank with a large portfolio of single families so they are balancing.

They were doing 80% LTV loans on my refinances. I just started looking and I see most are at 75%. Do I need to go look on the commercial side to find 80%?

My rents are between 1100-1300/month.

Max - They take full first month rent because they have more work involved then when renewing. They hire a agent to do showings, then they have advertising/leasing/screening time and fees. I think they certainly deserve a good chunk of that but defiantly not full month.

The company I use manages just over 700 properties. I called the biggest company in my area that manages just over 1000 and he said he could give me 8% instead of 10% because of my volume. But I did the math and it really doesnt save me that much money. The most money would be saved from money off first month rent fee.

I called around and it those rates seem pretty standard in our area.

I feel the entire first month rent is steep. I understand the listing agent gets half and the management company gets half, but my properties are all in great areas with higher rents and the leases renew in summer months super fast. Most time they are rented before they are on the market.

Would asking for them to only take 80% of first month be more likely then asking for 8% monthly?

I have been with my property manager from the start, about 5 years now. Its one of the larger companies in my area. I now have 21 single family homes being managed by them. All in all I am happy with the job they do and would never consider self managing. 

Fees are pretty standard. New leases they take entire first months rent. Then 10% of gross monthly rents. $200 lease renewal fee.

Is 21 properties and counting enough to negotiate some of the above fees? I get volume pricing from most of my workers because I keep them so busy, is property management the same?

I was approached by another investor who is in over his head and wants to unload 7 rental properties with an asking price of 298K (negotiable) – breaks down to around 40K/ house.

Are their any lenders who would lend on a portfolio instead of each individual house? I have traditional sources of financing like bank and hard money but ideally I would like to get them financed, rehab them, then refinance them with my bank like I do all my other properties.

I was introduced to an older man whos parents just passed and now he has the house. He said the house is paid off but its not worth what is owed to medicaid so he doesn't care what it sells for.

He is offering it to me well below market, in return he just wants some cash at closing to pay off the probate attorney.

Does medicaid have a say in this or can he sell it for whatever he wants?