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All Forum Posts by: Andrew S.

Andrew S. has started 51 posts and replied 1006 times.

Post: replacing cast iron any suggestions

Andrew S.Posted
  • Investor
  • Raleigh, NC
  • Posts 1,048
  • Votes 708
Originally posted by @Nicole W.:

@Andrew S. I had plumbing backed up and had the camera and they have already clean out. I was told they have about no more than two years of life best case. 

Did they happen to capture the video when they scoped?  That would be extremely useful.  As I said, there can be a number of different reasons for the backups.  If it is just a very choppy (rusty) inside of the pipe, it may well be possible to simply descale (hundreds to maybe a couple of thousand dollars, depending on length of the run).  Or, if there are just a few cracks where roots invade the pipe, then you can just have someone come by and "roto-root" the site on a regular basis (once a year should be fine for most situations - this will cost maybe $300-400 each time).  If you have major collapsed sections,, then you have to dig it up and replace (can be thousands to 10's of thousands, depending on the situation).  The re-lining procedure only makes sense in very select cases where the pipe structure is still sound, but the surface is very far gone, or the pipe is under massive tree roots.  It will probably be about half the price of the "full dig".

So, that initial inspection is very important.  That plumber should be able to tell you WHY he thinks the pipe has only 2 years left and exactly WHAT the reason id for his concern.  THEN you can get additional quotes for the work.  Keep in mind that any plumber who will give you an estimate for re-lining the pipe will attach several disclaimers to the quote, including "if we find that the technology is not workable for the particular situation while we attempt the repair, we reserve the right to switch to full replacement".  

I get it, overflowing sewage is extremely unpleasant to deal with, but this is a very significant investment and you want to get it right.  These are the types of expenses that are the most painful because nobody ever sees/appreciates them and they can take many years to amortize.  Obviously, you will do what you feel is best - I'm just trying to provide options.  I have dealt with exactly this problem myself, so I know how it feels.

Post: replacing cast iron any suggestions

Andrew S.Posted
  • Investor
  • Raleigh, NC
  • Posts 1,048
  • Votes 708

How do you know that you need to replace the cast iron?  Did someone scope the whole length and throughly inspected it?  Then properly diagnose?

I’m asking because depending on what the issue is, re-lining may or may not be an option.  If you have a bunch of sections where the pipe has collapsed or shifted, you may have no choice but to dig it up. If the pipe is just very rough on the inside (so stuff often gets hung up) but otherwise ok, then maybe a simple descaling process may be all you need.  If you just have lots of roots that are the problem, you may just have to have it cleaned out once a year - much cheaper than digging up the whole sewer.

I’d invest a few hundred bucks first to find out what you really need.  The differences in cost can be enormous.

Post: Airbnb's Anti-Racism Experiment in Oregon

Andrew S.Posted
  • Investor
  • Raleigh, NC
  • Posts 1,048
  • Votes 708
Originally posted by @Jim K.:

In 2016, the net worth of a typical white family in the USA was $171,000. The net worth of a typical black family in the USA was very nearly TEN TIMES LESS, $17,150. This is according to the Brookings Institute: https://www.brookings.edu/blog...

If we assume that (a) we are all the same species despite our skin color and (b) disparities on the order of 10X do not exist in the mental capacity of blacks versus whites (not assuming both (a) and (b) would be completely against every last shred of peer-reviewed science we have on the subject), we are left with a gigantic problem that can only be explained by racist behavior, conscious, unconscious, systemic, whatever.

So why is it every time anything that touches on this subject comes up here in the BiggerPockets.com forums, we get white people galore insisting that THERE IS NO RACISM IN AMERICA and rather unsubtly implying IT'S ALL THE BLACK PEOPLE'S FAULT? Or even more laughably, it's the white people in the majority that are routinely and harmfully discriminated against?

It's pathetic, my fellow white BiggerPocketeers. It really is.

Well said!

Post: What is the new construction process? Dig lot, pour concrete, etc

Andrew S.Posted
  • Investor
  • Raleigh, NC
  • Posts 1,048
  • Votes 708
Originally posted by @Douglas Gratz:

@J Scott yes but the point I am trying to make is. that everyone I have asked so far has given me a range similar to the above....not just builders...fellow investors...just about everyone who I thought could qualify to answer that question and it was at least 8 people ...I suppose thats the huge debate here, everyone is telling me my numbers are too low and im setting myself up for disaster where as everyone I asked doesn't come close to those #s.  You have to realize look up comps for anywhere n 2nst and poplar st 19123 or 636 n 3rd st, phila 19123....Its the location and city view that is the reason for the high sale price. Work in the city, want to walk, doctor, lawyer...its a house for them....So yes the finishes have to be nice but its more about the location....I wish I could have turned these two large lots in 4 conforming lots, but being that I am using hard money, I would need variances for build in garages (which takes 8 months) where as the way I subdivided was two larger homes that get parking by right...The comps speak for themselves....The home I will be building is on a lot 40x60 so will be 31x51 of house (side, frontage, backyard) 4 stories a basement and ROOF DECK with views you cant believe (you area 10 min walk from downtown) 5000 sqft that include basement and roof deck.....

Tell me I am wrong with those comps . I bought the land for $180 per 1 lot (4 adjacent lots, making one big rectangle)

I don’t think anyone is quibbling with your comps or predicted sale price.  What everyone is saying is that your cost assumptions are unrealistic.  
i don’t know who the 8 people are you have asked and who all told you $180 a foot, but I do know that several of the folks who chimed in on this thread are builders who have massive experience and hands-on history, so I know who I would pay attention to.

Post: Who paints their entire inside of their house the same color?

Andrew S.Posted
  • Investor
  • Raleigh, NC
  • Posts 1,048
  • Votes 708
Originally posted by @Nathan Gesner:

We white for the ceiling and trim, light grey on the walls. I try to use the same colors in every rental so we always have leftover for touch-up jobs without maintaining 30 different cans.

That 's what I do as well.  It took me about 6 years but I finally reached the point where all of my properties have this color scheme and I only need to store three cans of paint for touchup.  Makes turnovers much easier and cheaper (no trying and failing to match paint; no having to paint whole walls instead of touchups, etc).  

For me, the main problem with the "all the same paint" approach is that I want flat paint for ceilings, semi-gloss for trim and satin for walls to optimize "cleanability" of the surfcaes.  So, even if I had the exact same color, I would have three different cans of paint for each of those surfaces.  Also, I think ALL the same color and All the same sheen does not look attractive.  Finally, you can't really spray anything other than flat paint, so you are stuck with walls and trims that are very hard to keep clean.  

Post: Wax-Free Toilet Bowl Gasket?

Andrew S.Posted
  • Investor
  • Raleigh, NC
  • Posts 1,048
  • Votes 708
Originally posted by @Andrew S.:

I have used these products maybe 10 times over the past 5 or so years and have never had any issues with the installation.  So far, they have held up just fine, so I will definitely stick with them because they are so much less messy and because re-seating a toilet is no problem whilst you only really get ONE shot with a wax ring.

That said, of course, it will be a very long time until I can truly comment on their durability vs. a wax ring since those often last many decades.  Also, it will be a long time before I can actually benefit from not having to deal with the messy wax when replacing them....

My main driver for switching away from wax was that there are basically two things that joint comes in contact with (aside from water): poop and wax.  In most cases where I had to remove a toilet, it was very hard to tell which of those materials (or a mixture thereof) I was scraping off of the floor and toilet.... yuck.

 Coincidental update:  I decided to replace the bathroom flooring in one of the properties I used a non-wax ring to re-seat the toilet about 9 months ago.  My flooring guy had to pull the toilet and was extremely pleased with how clean and easy the toilet lift was.  He was able to just reseat the toilet when he was done with the flooring - used the same hardware.  So, definitely seems to be worth the few dollars extra cost vs. a wax ring.

Post: Toilet running for months. How do I recoup the cost?

Andrew S.Posted
  • Investor
  • Raleigh, NC
  • Posts 1,048
  • Votes 708
Originally posted by @Theresa Harris:

Tell her that you shortened it again and this time bring something to cut the chain, so she can't lengthen it.  Tell her she has to pay part of the bill. If it happens again, she has to pay the entire bill.  Call the water company and see if they can do anything.  When you renew the lease, increase the rent more than you normally would to help recoup costs.

 I agree: cut the chain, BUT: get the length of the chain right.  Too long and it tends to slip under the flapper, causing the problem you observed.  Too short and you will not get a full flush without holding down the lever for an extended time.  This is what happened last time you shortened it and it is why the tenant went back in and made it longer again.  There is an optimal length between these two scenarios and that is what a correct install is.  Do it right!  In other words, you did not install properly and thus, you don't have much of a claim in my view.

Post: Fireplace Not Functional

Andrew S.Posted
  • Investor
  • Raleigh, NC
  • Posts 1,048
  • Votes 708
Originally posted by @Joe Splitrock:

@Aaron Lancaster I do not let tenants use wood fireplaces. They are a fire hazard and require regular cleaning. As a landlord, any form of open fire is dangerous (candles, smoking, gas stovetops). I stuffed insulation inside the couple properties that have them and told the tenants they are non operational. You can put whatever you want in the lease, but the likelihood that they perform yearly cleanings is low. You will need to do it yourself or require proof annually. 

I would also consider regional differences. @Nathan Gesner lives in Wyoming where wood is plentiful, cheap and a common heating source. It may be expected in his region and may demand higher rents. I live on the prairie, where wood fireplaces are uncommon and having one commands no rent premium. Odds are good if I sell the house that someone will convert to it to a natural gas fireplace. Natural gas is seen as cheaper, cleaner and safer in my part of the country.

I agree, there are likely regional differences to consider.  In WY, I can understand why you would consider it.  Here in NC, there is very little practical need.

I have four units with fire places.  Three of them are in need of major chimney repairs (re-line, repoint, etc) and I have quotes for over 3K each to fix them.  I decided to go with an electric log in one of those and to simply declare them “unusable” in the two other cases.  In all of these, I installed a “downdraft bubble” or block cold air from infiltrating through the chimney and I have had no issues.  In the interest of full disclosure, I advertise those rentals as having “an unusable fireplace”.  Nobody has complained yet.

In my fourth unit, the fire place is still in great working order, so I do maintain it (clean-out at every turnover - but according to chimney sweep, it gets essentially no use).  Most tenants seem to fire it up once or twice until they realize that it is too much work to start it up and then clean it, and then they never use it again.  I will probably declare this one as “unusable” as the chimney sweep costs around 300 bucks each time.

Post: Tankless vs traditional hot water system

Andrew S.Posted
  • Investor
  • Raleigh, NC
  • Posts 1,048
  • Votes 708

I have installed a tankless in one of my rentals, but it was driven exclusively by space considerations.  This is a small 3/1 and every square inch is precious.  Old water heater was sitting in the kitchen pantry taking up half of that space.  Replaced it with a tankless system mounted to the outside of the back wall.  So far, no issues after 3 years.  Tenants do like the "endless stream of hot water", but did not notice any real difference in their gas/water bills.  I got the system (installed) for exactly $2000 which I felt was an outstanding deal in 2018.  I can easily get THREE 40 gallon conventional heaters for that amount, so I seriously doubt tankless would EVER break even - even if the tankless lasted 20 years (which I highly doubt, but will gladly take if it does happen).

Post: Apartments.com now requiring tax information

Andrew S.Posted
  • Investor
  • Raleigh, NC
  • Posts 1,048
  • Votes 708
Originally posted by @Joe Splitrock:
Originally posted by @Mary M.:

rental income has been reportable for a while....  years.....   just that mom and pops have slipped under the radar....  just report all your income and you will be golden. (and be forewarned, it is SUPER easy for any taxing agency to know what you are doing - so hiding income is pointless....   if they want to they can and will find it all. 

Paypal (and other payment systems) have been reporting income for at least a couple years....  maybe 5?  Not sure why everyone is all upset.   If you dont like using your TAXID as a TAX ID then create a biz entity. 

What Biden wants to do is not related to rental income....  which has been reportable (anything over 600)  for years 

ETA: along with rental income/expense being reportable via 1099s property owners should be 1099ing their subs or any service business they pay. (check the IRS for specifics - I have not been keeping up with the new laws over the last 5 years) 

This is all easy to find via google...  and the first iteration I found was from 2010. 

 The reporting laws for PayPal (and other electronic payment platforms) had a threshold of $20,000 or 200 transactions per year, so the change to $600 is significant. This is a big change taking place January 1, 2022. Look at the links I posted in a previous message.

This is 1099-K, which is credit card and third party payment processors. That means any electronic payment processor is going to be reporting landlords income. As long as your claimed income on your taxes matches what you are receiving, this is no issue.

The current administration is taking a very aggressive stance on tax enforcement. This electronic payment clause was hidden in the American Rescue Plan passed earlier this year. The "Build Back Better" bill they are pushing through congress has $80B additional funding to increase the size of the IRS. That is $45B just for more audits. The IRS did 500,000 audits in 2020, which was a multiyear downward slide down from 1,500,000 in 2010. Staff and budget in 2020 was down 20% from 2010. 

 I don't see anything wrong with an aggressive stance on tax enforcement.  I pay my fair share of taxes (but not a penny more than I have to!), and I expect everyone else to do the same.  That's how societies are supposed to work.