All Forum Posts by: Erich Martinez

I've placed an offer on a property where some of the electrical and plumbing has been stripped.  It looks like the wiring in one room and plumbing in one of the bathrooms.  I'm wondering if they got startled otherwise I'm not seeing serious damage as I've seen in other properties.

I was curious because it looks like basic plumbing and wiring needs replacement to one breaker circuit, and one plumbing line.  There is some drywall damage where the wiring was pulled that will need replacement.

My question is based on the damage described above would a permit be needed in the Pueblo CO area to address these changes or could I hire a handyman or do the changes myself.  Overall, I'm not seeing a large amount of damage.

Regards,

Erich

@Michael you are awesome and extremely helpful I definitely appreciate your guidance.  I'm going to look at that this week.  @Ryan I appreciate the advice, I did have a bad feeling about ACV but was told based on the age of the house this was an only option.  I'll look at the national players you and Michael mentioned.  Thank you so much.

Erich

Thank you @Rick Thomas and @David Pearson.  I'm purchasing a 2 bed / 2 bath property with detached garage that I'm getting a quote for $765.  Maybe it's a good number, just curious how Trulia is generating there numbers.  Rick, I'll try contacting some local agents.

I've been using Trulia to analyze home insurance in Pueblo CO.  I'll take these estimations and enter them into the BiggerPockets analysis tool.  However, when I attempted getting quotes the insurance premiums are nearly five times higher.  I was curious what factors to look for such as roofing age and type, deductibles or other strategies in the insurance quote.  Since buying an older property in 1904, the insurances uses ACV, I am having problems understanding what I think are higher rates.

Could anyone assist in a reputable insurance dealer that will not bloat costs in addition to offering assistance in factors to look at when buying insurance.

Evan,

I went through a job loss and bankruptcy in 2010, a divorce in 2011 and the following year was diagnosed with a Head/Neck Stage 4 cancer; basically was given a less than 5% chance of survival. During the process I was blessed to have two children I was raising since there mother left.  It was some scary times, but I was able to find a way through.  I feel very blessed to wake up each day and live each moment, and I love your attitude about getting into a real estate position and being exposed to it.  I'm not bringing up my personal past for sympathy or to impress; but interjecting that we take notice of each day, and focus on our goals to make it through any obstacle.

I had invested in real estate prior to my divorce and did not do well.  I feel fortunate to have found this site, gained wisdom from the past, and am excited to to live with vigor and work through the challenges in real estate.  

I think you have great perspective and know you will do well in your endeavors and wish you the best of luck.

PS The obstacles and challenges make it all worth it, you'll look back at your accomplishments and your success will be even greater.

Sincerely,

Erich

I found a duplex, but am reluctant to purchase because the water, gas, and electric are not metered.

I understand it can be expensive to setup a separate meter with the city, but am not sure the costs of gas and electric? I'm interested in the idea of sub-metering.  

I'm not familiar with what to look for in the unit to ensure gas/water/electric lines have ideal access points for sub metering accurately.  Also, how would these meters be read monthly?  I.e. If the meter could only be placed indoor, would someone need to get into the unit each month to read the meter, seems like a burden to the tenant.

Does anyone have experience in this area?  I am tech savvy and was thinking of a low cost internet solution to make the meters wireless depending on location.  This would also offer internet services for free to the tenant, I know this would be a fairly stable cost.  If inside, I could do the internet option, but adding outside is ideal to reduce cost and have the property management company read the meter.

Thank You,

Erich

Dave,

Thank you!  I like it go with the numbers.

Erich

Evan,

I think you have an interesting opportunity here.  I've read briefly on La Veta and noticed its a very small town.  I was thinking creatively if I inherited this "opportunity", that's how I would word it in a positive way. what would I do?  Given its a small town your parents are most likely part of a town hall, and you mentioned the business that is owned is a staple of the community.  I think the worst thing would be to fail the business as it could fail the town as well.  Thinking outside the box, maybe there are ways to grow the town, maybe the restaurant has items that are unique that could be marketed outside the town.  I just read golf nearby?  Maybe golf vacation getaways? Maybe the RV area could be setup as a camping location where people can go to the website to setup vacation retreats.  Maybe buy unique goods from the restaurant online.  I know given Colorado's growth, camp grounds seem to fill up quickly, maybe this is an advantage.  Given its a small town, maybe the town as a whole could look at growth opportunities to attract visitors.  I was looking at this site:
http://smallbusiness.chron.com/bring-business-smal...

I'm kind of starting out too. Maybe I could help, maybe trade services, I.e. website/data to market for a camp ground spot :-).   I do this on the full-time job, working as an investor part-time, just starting though so learning as I go. As for your parents, if their could be passion restored, maybe they could scale back work, but as an added bonus assist with your common goal. I think having you come in may inspire them by having a common vision on where you want the end-state of this to go?  I'm curious if the town as a whole faces this dilemma?  Maybe a town vision to boost the economy would give added support.

For restaurant you mentioned you have an RV park, could you barter services with with a qualified candidate, say a restaurant manager, camp manager and offer two furnished spots for them to live, and allowing your parents more downtime.  Possibly advertise on craigs as a job with the perk of living rent-free? 

I wish you the best of luck and message me if you have any questions.

Regards,
Erich

I'm currently living in Reunion CO that is part of the metro Denver area. The equity on my house exploded and was thinking of moving elsewhere, and paying off and buying a new primary house. However, I am a third round SCC head/neck/lung cancer survivor and single father. I state this as my kids want to stay here, and Denver CO has good cancer healthcare given a recurrence, I'm currently 4 mos cancer-free.

Ok here is the advice needed, I found a duplex property about 120 miles outside Denver (more affordable) area, ran the property rental estimator tool, ran rent analysis and believe I have found a property with potential. My next steps are to make and offer that fits the analysis done and is contingent upon the seller accepting and the results of the inspection.

One unit currently has a tenant that has been there for 7 years, this knocks the estimated repairs to about $15-20K as of now (however will plan for $30K, you never know). The tenant has some hoarding tendencies, but could make it difficult to do repairs she is requesting, but being a long-term tenant with good rental history seems like a good deal overall? In addition, I did see legitimate repairs needed that she has requested, but the property management/owner have not addressed.

Questions are:

(1) Is this a sign of a bad property management company or owner not having funds? I've read screenings on tenants (in much detail), but I have some sore spots for property managers not doing what they should. Are there good property managers screening tools, or advice on finding a good property manager?

(2) Has anyone dealt with good tenants as far as rent, but are hoarders and in need of repairs? What actions can I do, my logic is fix the issues that I can, and let the tenant know I will correct the issues once the area is cleared out? I've had tenants in the past but haven't dealt with this, so its a first.

Thank you for your time,

Erich