All Forum Posts by: Ed Matson

What about the nail holes in the bottoms?

I don't believe there is such a thing as an accurate average cost per square foot unless you do a high number of flips.  The cost variation between major and minor rehabs is too high for an average to have much meaning.

Excellent comprehensive resource.

I agree 100% with Anthony G.  We maintain our 46 units very well and price rents just a little below market.  Keeps us with very little vacancy, and very low turnover.  I'm convinced the absence of high turnover and vacancy costs more than makes up for a little lost rent.

Try odor elimination products from Nature Plus in Stratford, CT (www.nature-plus.com/).  I think the product line is called Eco Care.  You'll need to soak the garage floor to let the enzymes in the product soak into the floor, just like the dog urine did.  The stuff works.

Hello Joseph,

We are more than halfway through our first flip, a major reno  in Connecticut (not termite country). I had a termite inspection done prior to purchase.  It found evidence of old activity (trails), treatment, and no new activity.  Our physical inspection revealed only one floor joist with damage needing replacement. Inspection was done from the inside. After we started demo we found not only very substantial damage , but also current live activity. Schedule delays of about two weeks due to extensive reframing and a fairly big hit to the budget. My partner is a carpenter.  We discussed if the inspector or we should have seen this before purchase.  The only way to have done that was if we had removed shingles and clapboards to look at sills and studs from the outside. If we find another house with such evidence of "old activity", I will insist on an examination of the sills from the outside prior to contract. We will be selling the property with evidence of treatment/remediation and a guarantee from the pest control company based on annual service.  Your idea to reduce your offer by $2500 is just a guess if you don't have an inspection from the outside of the house.  Of course, this damages the house, so it may be a non starter for the owner.  Just my two cents based on our project that is now more of a new build than a rehab.

Simply put, yes, this would be categorized as regular income. You might also be subject to self employment taxes.  Suggest you consult a CPA.

You might try cliqstudios.com for high quality semi custom all wood U.S. made cabinets at prices equivalent to HD's prices for mid range Kraft Maid cabinets.  Not cheap, but a good value for high quality cabinets with design services.  Prices are in the same neighborhood as stock all wood Chinese cabinets such as Fabuwood.

Depends on what your long term goals are for the property, and what your income needs are.  You say you want to buy and hold, but your analysis speaks to your position at end of year 4.  I'm not sure what your goal is with this property.  However, my primary objective with multi family is cash on cash return.  So, barring special circumstances, I would go with the 25 year amortization loan and maximize cash flow.  

My father was a builder, and from the time I was 12 until 18 I was his unpaid helper during the summers.   Everything from cleaning up the job site to waterproofing foundations and rough framing.  I really hated it most of the time.  Not so much the work, but taking constant orders from my father.  Anyway, not only did I learn a lot about demo, remodeling, new construction, and working with the trades, but I really did learn a work ethic.  So, now some four decades later and early retired, I find myself as a real estate investor, involved both in MF buy and hold as well as flips.  In retrospect, I am really glad to have had the experience with my father.