All Forum Posts by: David S.

 There are several that exist for this purpose. One is the Honeywell Focus Pro 5000.

BTW, since this came up, any opinions on the low/high to set it on?  I have many installed, but have refrained from putting a temperature.  I am still in research mode.  Maybe 70 low and 80 high? One thing I need to do is put this in the lease and I would have to not do it for certain medical conditions.

@Radley Estrada   

Have your tenant contact her medical insurance carrier.  Most have replacement plans for lost/damaged/vacation medication supplies. Often, it will be free or she would just pay the co-pay.  I am in agreement with @Jennifer T. There could have been some personal responsibility on her part.

@Stefen Sheets

We are seeing buyers purchasing rehabbed flood homes.  Here is the article I was talking about:

 O'Neal Place Subdivision Sales

I am not selling any houses right now, only converting them to rentals.

As to whether you want to flip or buy/hold, I believe that would be a function of your personality, needs, wants, and goals. 

If you would like a more active role and want to make short term profits, by all means you can do well with flipping at the right entry price point. There has been an article in the Baton Rouge Business Report about how flippers are making good money in O'Neal Place subdivision in Baton Rouge.  If you want more passive income, then rentals would be good for you (however, the first part of dealing with a flooded home will be like doing a flip).  Or a combination of both would give you cash infusions and regular income. 

However, I must stress that you must know your market to pay the correct price.  There is a lot of overpriced flood property on the market right now.  You need to consider that you are taking the responsibility of CORRECTLY rehabbing the property so that it is safer than it was before it got flooded.  That means properly treating it for mold.  I take the extra step and put a very expensive coating so that I know there won't be a problem years later when the walls are closed up.

@Clayton Crawford

Maybe It is time to find off-market deals?

To get a good price, MLS is definitely not the way to go. Let me give you an example, through networking, I bought a property 20% less than an identical property that was next door to the other one. I built a relationship with the other investor over the years and he wanted a quick sale from a serious person. He was a highly educated, retired real estate agent and a shark when it came to real estate. I had told him over the years that I wanted to buy more property and he declined every time I asked. It was when he had had enough, he called me to sell it to me. Despite his impressive knowledge of the market and what he could possibly get, he wanted to sell to me because he knew I could close. He knew that I had no tricks or games up my sleeve. This has happened numerous times and I have even gotten much greater discounts than the 20%. I only used that one as an example because the 2 properties were identical and sold 3 months apart. By the way, the other property was on the market less than 24 hours before it was under contract and closed 72 hours later. It sold for more than list price. Therefore, it was a hot market.

So, start networking, sending out letters to owners of distressed properties, driving for dollars, calling for rent signs/ads, probate, and any other off-market techniques that will get you where you want to be.  Build a solid reputation with other investors and the community. Good luck!

There are alternative drop-in and near drop in refrigerants that are much cheaper than R-22. R407C and R421A come to mind. The site listed above is for wholesale prices and one must have a refrigerant card from the EPA to buy legally.

One cheaper alternative is to replace the evaporator coil (if this is the leaking component, which is most of the time as the HVAC service company pointed out) and have them use the flow orifice for R-22.  The new evaporator coils are identical for R410A and R22 EXCEPT for the size of the flow orifice (or expansion valve, if this is used instead) and a higher pressure rating to accommodate R410A.  When the condenser fails later on, you could simply have them flush the system and change the flow orifice of the evaporator when they change the condenser.

However, the best course of action if you have the funds, although the most expensive, is to ask 2 other reputable HVAC companies for a quote.  You can go for the lower quote or ask the current company for a reduction.  This is a business decision and if you feel you are getting price gouged, it is best to verify that.

There are deals out there, but good ones are hard to find.  I also have seen some outrageous prices. 

One must also navigate the fact that some of these houses have been declared over 50 percent damaged by the local Department of Public Works (or whatever the Parish in questions calls it). Should this occur, the house MUST be raised or demolished. Some greedy folks try to get this done (but most people are definitely trying not to get this done) so they could access an extra 30k. I was in talks with one owner and broke off negotiations when the owner sought and obtained this classification. The owner was laughing at another investor's offer stating it was a lowball. I told the owner to call that investor back ASAP (and be truthful about the classification and the consequences) and see if the investor would still pay it. If so, take it now! Since it was declared over 50% damaged, basically all you have is a liability. It costs at least 3x what FEMA is offering to raise it. Some want to take on that kind of project....but there are easier ones out there.

One needs to look out for improper demo. If it demoed to 4ft, does it need to go higher?  Did they wait 4 months before doing the demo? Is the sheathing in good shape or does it need replacing?

There is a lot of liability and responsibility in taking on a flood house.  Therefore, one must come in at the right price point.  My prediction is that there will be a "2nd wave" of flood houses being put on the market. Once a lot people walk away and banks take 6 months to foreclose, they will all hit at once.

Good Luck!

I have used the 1/2 inch Hardiebacker Cement Backerboard and have not had any grout cracking or tiles coming up.  Yes, the level is higher, but this step is necessary for a proper installation.

Normally, one would tile up to the cabinet and then install shoeboard trim.  Also, tiling would go to the bathtub.  I have seen tiling underneath the cabinet a few times, but that was when a new cabinet was installed during a complete renovation.

Schluter has a flat underlayment that I seen on Holmes on Holmes and is sold at Home Depot.  However, I have never used that product. and can't speak to how effective it is.

One question that needs to be addressed is that according to your state laws, have you given possession to the tenant by signing the lease?

If so, you must file an eviction or both parties must voluntarily agree to a contract termination.

I would not rent to them.  You should legally dissolve that lease and move on to the next qualified and pre-screened tenant.

I do agree with your points. That place will likely be torn up at the end of the lease term. However, one cannot refuse this tenant based on 8 people because it would be HUD violation, which has been established at 2 people/bedroom + 1 if there is a living room. As pointed out earlier by Steve, there are local zoning ordinances that may kick in prohibiting this type of arrangement keeping you out of trouble for this type of rejection. If there are none or if they are within local ordinance guidelines, you can't use it. They may fail another part of your qualification process...as long as that particular qualification is enforced consistently.

I charge extra for leases less than one year.  That has been the way I do things from the start, so you may consider that as part of your policies. I am not running a hotel business so I think less than 1 year should cost more.