All Forum Posts by: Austin Fox

Hello BP,

I am in the process of trying to buy a duplex down in South Florida to house hack. Like everywhere else, the market is insane. However, I managed to get a duplex under contract at a decent price with a decent return. When it came down to the building inspection, I had the opportunity to pay the extra $500-$600 for the plumbing inspection. So to protect myself I did it and well...

Everything looks great on the outside but not always on the inside. The entire pipe system is decaying as we speak and needs to be replaced. The piping system is made up of cast iron and the building has some years on it. The plumber couldn't even get the camera through because of a built up corroded pipe. Total Estimate of Repairs: $50-60k. If you don't fix it and it breaks... well you can only imagine how bad that will be so....

The deal isn't dead yet as we are still negotiating, it could turn into something really good. However, to those starting out like me, do your due diligence and don't be cheap on the inspections. I am still a student in this game and learning but this is a lesson I would like to share with you guys. 

Best of luck to everyone!

Lets do it! When and where??

I'll be there!

Hello BP,

I am looking to make a purchase in the upcoming months in the area of Memphis, Tennesse. I would like to know if the community has any good recommendations for a real estate agent that knows the area well. Thank you!

@Andre Grant-Acquah

Building on Dave's comments,

Number one tip that is the most important: Make sure they are licensed and insured!

Nick,

I believe the best answer for that is finding out what works for you. Depending on your situation and your goals,that should give you the answer. Do you wanna be a land lord, do you wanna rehab, do you wanna etc... and how does that fit into your everyday life/goals. Best of luck, Happy holiday!

Arturo,

When bringing in a GC for a project, it's best to use your contract for a scenario like this because you want it to favor you. You can have this done by a lawyer or yourself. A lawyer would cost money. You can also have a lawyer review a contract that you draft.

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You can draft your own contract in Word and have both parties sign it. If the project goes bad then you have the contract which can be used in court. Just make sure all the terms and conditions you write in the contract are exact and understood so there aren't any issues. Don't assume anything!

 My guess was the land. The houses nearby are all over an acre. People nearby are building houses bigger than ours so its diversified. You have homes that are in 400s all the way to the high 900s+ but those are the newer homes. The goal is to eventually sell in a year or two when the bigger homes get built so we're not the top dog asking for too much.

 Thank you for taking the time to explain, that's what I thought as well. The renovation was an addition of a garage and entire inside renovation to everything but the overall blends with the surrounding homes. Nothing too crazy compared to the other homes. However, some people are building nearby brand new houses much bigger than ours so I will continue to keep an eye out! 

Hello BP,

So the discussion came up yesterday with my mother about her current reno. Bought a 300k foreclosure, so far 200k in reno added with still 50k-80k to go. We talked about possibly selling at some point and what the numbers would be. As numbers started to fly, I asked "What are the numbers for the surrounding houses?" and she replied, "Those houses don't matter".

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1. Does she have a point? 
2. Do the surrounding homes have an influence? 
3. If they do, why?