All Forum Posts by: Bill Coleman

Umbrella policy I bought recently was only $272 a year via Liberty Mutual for $1,000,000 in coverage. That's over and above the individual property liability. 

I know investing in Detroit seems enticing because of the low prices but please do your research on growth/turn-around patterns (which I heard are happening right now). I think if you dedicate some time to understanding these patterns, you could be in the path of prosperity. If you buy in the wrong area, you may end up owning a property that is not useful. Perhaps you could align your purchases with plans of a larger developer.

I just bought a unit and I am planning laminate flooring in basement hallway and media room but going to do rugs in the two basement bedrooms. Upstairs is original hardwood throughout so I am just going to refinish. Had 16 units 20 years ago that all had rugs and most of the rugs were nasty after the tenant moved out. Replacement was mandatory. Plus, tenants would prefer not to bath in the last tenant's filth. 

You just described Denver. House prices are shooting up and we are just now seeing rental prices start to rise. Leases have to renew and owners have to be aware enough of what the true value of their rental is. Then they have to raise rents. So it's a slow process but we are turning the corner right now. Economic factors are very favorable here: good job market, lots of people moving into the state, pro business atmosphere and low taxes. Plus we have the mountains and outdoor recreation. Rents are projected to rise by 20% by 2015. Good for me because I just bought two SFRs!

Running into those same breakers right now and it's gonna cost big bucks to sort out. 

Always see if you need a new AC unit and definitely check the roof. Adding egress windows can be spendy as well.

@Bill S.  Thanks as always for your comments! I can always rely on you to post and I thank you for that greatly.

Perhaps a way to bridge the gap is to wait until the rehab is well underway and you can see the light at the tunnel - perhaps 1 month out. Then post the sign and advertise the property. I think that the strength of the rental market here in Denver will cause people to jump at properties they normally would not consider. Including one that does not have rehab complete. 

But Bill, I get what you are saying about a project not being completed on time. My contractor says that we don't really need much in the way of permitting for this project so that should not hold us up.

After meeting several neighbors around my new property, I wanted a way to capture names, addresses, phone numbers and some notes about the people.

To do that, I did a screen capture in Google Maps after zooming in on the property (in Map view not satellite). It gives you outlines of each house plus street names.

Then in Excel or Powerpoint, I am able to paste and crop that screen capture (taken by hitting the PrtScn button and then pasting). I then overlay boxes from the Insert>Shapes menu and place the house number in the shape by adding text.

Then I add a text box with all the pertinent notes about the neighbor.

This helps me get to know all the neighbors better so even though I dont live there, I am able to better become part of the community. You need neighbors to look after your property. Hope this tip helps you all out!

Last night I had a meeting with a potential contractor for two simultaneous rehabs. We talked about the different ways that we can work and how he gets paid: cost plus, fixed price, etc

I would like to know how other pros are structuring their payments and what is the preferred method of billing. I am interested in finding out what method produces the best results for the least money.

@Derek T.

I assume that it will be kind of obvious that the house is being worked on since the lawn is about 6 feet high right now and it looks abandoned. Suddenly it's going to look like there is activity and thieves know what to look for. I am wondering if having or not having a "coming soon" sign makes a difference. Would the house be broken into regardless of the sign? Just a thought.

I also like the route of talking to neighbors. They know what's going on with their overgrown neighbor's property. For instance, the property I am in contract on, I found out the neighbor is going to list her house in the next year. I definitely want to speak with her before she lists the property to see if there is an opportunity for seller financing. This will happen long before she ever speaks with an agent or lists the property.

Keep pushing to find the soft spot. It's going to take a network of people working for you. However, I find that if you stop communicating with those people, they will forget about you and stop working for you.

It's also going to take some luck so you might want to be open to doing things in a way that is out of your routine. Go down streets that you never turn down and talk to people you normally would shy away from engaging. I watch my realtor in action and as soon as he sees a local, he grabs them and starts getting information (in a very friendly way). Invariably, we are able to use that information to our advantage.

Thanks everyone. Great comments.

These units will be ready come end of August so I am right on that school move bubble. It's possible that they could be ready mid august if all goes well.

The Denver rental market is VERY strong so I am hoping to have it rented in advance of the completion of the rehab.

I'm on the fence as far as a sign because of what @Derek T.

said about thieves. I don't think the area is crime ridden but I also don't like the risk. I also know that signs are an excellent way to rent a home because the neighbors all want their friends to move in next to them or across the street. Of could a simple meet and greet with the neighbors could solve that.

What does anyone think about using photos of other rehabbed properties with a big disclaimer that this is not the actual unit but the renovated unit will appear like the one shown? I would have to borrow a photo from someone else as I do not have my own rehabbed properties to draw from.