All Forum Posts by: Christopher Lessing

Thanks for your response, I am leaning heavily toward keeping it for cash flow for a few years.

For those of you that have done something like this, is there a way to rehab and add units without dramatically increasing the property taxes?

Hello, 

I am looking at a 4-unit property and would like to know the thought of some seasoned vets out there. I am between fix/flip or BRRR and I am not sure if I should make a decision now or leave my options open as the rehab process goes along and decide when it is finished.

(1) 2-story building

4 units - each about 1200 sqft 3/2 no garage

0.820 acres

ARV ~$625,000

List Price $450,000 - may have some wiggle room here

Rehab $80,000

Total cost $500-530k

Comps are listed for $625k - 675k

I am kicking around the idea of adding another 4 units to the property for a total of 8 units because there is plenty of space available if i mirror the existing building layout. This would definitely change the ARV and cost of the project.

Would a property like this be feasible as a flip? Are there still investors out there looking for a turn-key rental property? 

I get the feeling that something like this would be best to hold on to for a few years if I can do a cash-out refinance when the rehab is done and it is rented out. If I did BRRRR this, I could roll into another property relatively quickly If I were able to recoup my cash and pay off investors.

Please let me know what you think!

@Account Closed I am interested in meeting  up here in San Antonio as well

This will be an interesting thread if you get any responses... I'm kinda hoping you do

@Mike Burkett I wonder if the inspector knew that the wiring had been pigtailed, realize it had been done or if he even knew of it being a common practice. Often times it is easy to forget things over the years or convince ourselves that certain practices have been phased out due to new code and modern building practices. 

@Charlie MacPherson Ouch! I bet that can add up if they have a hungry attorney. I can agree with @Mindy Jensen , I have that language in my contract also, but I still worry about having upset buyers and a tarnished reputation. So I try to do the best I can in explaining everything to my clients.

@Charlie MacPherson these are great examples.

Have you ever had a buyer go after the home inspector (insurance) for either leaving something off the report or down playing an item that later turned into a larger issue?

As in Example 1. The home inspector says something verbally to the effect of " there might be an oil leak here in the tank, but probably just surface rust, no big deal it is common" and then the home burns down a month later because of an oil leak.

I think this is something that most inspectors fear and the result is a report filled with deficiencies that are often insignificant, like minor surface rust on the exterior of a service panel.

@Mike Cumbie "Don't be an Alarmist" I totally agree. it is especially easy for first time home buyers to get scared out of a good deal (ask me how I know, been there myself). 

I would love to have each buyer come to the property at the end of the inspection so I can go over it with them in person the preface a lot of the items we mark "D" on the report, but that can't always happen. Do your inspectors generally meet with the buyers post inspection in person or over the phone?

@Mindy Jensen Note taken, I will try to choose my words wisely!

@Russell Brazil I find that being realistic with the buyers is easiest to do in person, often times the report can come across as though the house is a disaster when it actually is not that bad. Conveying the reality of the home's condition relative to the neighborhood is key, but I feel that that can come back to haunt me if I have that in my report and the buyer takes it as "these things are no big deal". 

Crime and Risk in that area may be higher, but for sure lots of renters in the market there. Would be great if you have a process to weed out your renters to make sure you get good ones...

Hey Yall,

I am a TREC licensed Professional Home Inspector #23613.  I am hoping to get off the ground and start inspecting in and around San Antonio, TX as well as investing in rentals and flipping.

I would love to hear what RE Agents have to say on what you are looking for in a Home Inspector and what you would recommend in terms of effective marketing to RE Agents.

Direct mail to offices? In office presentations? cold calls? Face Book ADs?  What do you guys HATE to see come your way? I know all of this can add more stress to your days and that's not really what I intend to do. Not trying to self promote, just looking for advice is all...

Thanks in advance!

@Gene Livingston it sounds like you are covering all your bases with becoming a licensed inspector also, it will definitely change the way you walk through homes. 

@Mike McCarthy that is a good idea to have an inspector come on site if anything major sticks out to you. Some times just having another set of eyes can bring things up that we would otherwise miss, even as experienced home buyers.