All Forum Posts by: Cyprian B.

The property will make money as it is and will still make money if I do the foundation repairs. 

While the foundation might be an issue, its not a pressing issue (my assumption). The house has renters and should continue to rent. Of course there's the risk that not fixing the foundation right away will just cause me a bigger head  ache in a few years.

Thanks @Rick Pozos and @Ryan Hawkins. We're sending an amendment to try and lower the price.

Would still like to know if others have experience with just not fixing the foundation. 

Would like to add my calculation already includes 8% vacancy.

Thanks @Travis Buck and @Matthew Medlock. To be honest I have no interest in spending any money on fixing the foundation. My numbers don't include the 10k to fix the foundation. That would take the cashflow / initial investment to just 11% from 13.86%.

I will try contacting All Foundation for their opinion.

Good Evening everyone,

We're looking at a property in central San Antonio, TX and we are on contract now in the option period.

The property has a CAP rate of 9%.

Cash flow / initial investment of : 13.86%

I'm including in the calculation 10% repairs and maintenance and 5% capital expense. Calculation also accounts for insurance and property taxes. I'm going to manage the property and there are currently renters whose lease just renewed. My realtor and I walked through the property today. It is not a high end rental.

My issue is there are foundation issues which is not uncommon in SA from what I understand. It is pier and beam foundation and part of the house is leaning some warping of windows. However, it is rented and those types of things don't matter to renters of this class of property. They've provided an estimate of 10k to fix the foundation and 5k to fix the roof. There currently no leaks on the roof. 

Thoughts? To me this is a cash flow property. I just want to make sure I'm not missing something or if someone has an opinion on the foundation.

Thank you!

@Jordan Brenner thank you. The sellers wouldn't agree to fix most of the repairs, and it was a lot. We've terminated the contract. I feel like I dodged a bullet there. $560 down the drain, but that's the cost of doing business.

Hi everyone, Need some quick and much needed advice. So this is the same property as mentioned above. We did and I've recieved the home inspection. There's many issues on the property from mold to water intrusion in basement, rotted wood, possible termite damage. I don't really have appetite for a rehab on the unit. However, in our contract the seller agreed to the following "seller must remedy all repairs that come from buyers inspection within remedy period or this contract is null and void". We're waiting for the sellers response. So far it's only cost me the inspection $560. Plus a day of leave and gas for the inspection. Thoughts? Is this a nightmare property in the making?

@Cliff Harrison Thank you Cliff. There are no trees. However the neighbors tree is over the backyard. There are two shrubs in the front yard.

Gotcha on the maintenance. I'm not sure why I wrote it low, I have it at 10% on my hard copy. Will increase it more depending on how the inspection goes.

Just got back a quote for landscaping coming in at $47 every 3 weeks for mowing and trimming. For snow, depending on how the leases are written now, I will have the tenant responsible for snow removal once they turn over.

Someone correct me, but according to Ohio state laws, common areas are responsibility of the landlord. However, the front yard and back yard, I wouldn't consider common areas. They are for the use of that tenant alone. I'll probably need to consult an attorney for that. Relevant Ohio codes below.

See  5321.04 A 3 http://codes.ohio.gov/orc/5321.04v1

See 5321.05 A 1 http://codes.ohio.gov/orc/5321.05v1

@John Leavelle Thanks John. We're having the inspection on Wednesday. Holiday didn't help me out lol. 

Trying to pull as many quotes I can for PM. But yea everyone is in vacation mode right now. It's hard finding good PM. Almost everyone of the companies I see have some sort of nightmare review from owners and tenants. 

@Jeffrey Hotz Its the area around German Village.

@Jeffrey HotzI will be living in San Antonio in a few months here. But I am currently in Ohio. Sorry for the confusion. So I have the opportunity now to see and look at the property. 

I will probably transition to PM if it gets out of hand. I've been looking at San Antonio and I haven't found a property yet that yields close to the same ROI.

The deal came up and I wanted to get started sooner than later. If I waited, that would be 3-6 months of income missed.