All Forum Posts by: Stephen Masek

The reason there are not so many cash buyers at the higher prices is that the rents don't go up at the same rate as the house price, that is,a $150,000 house will not rent for 1.5 times what a $100,000 brings.

We have a 1999 4/3 we bought in Gwinnett for $104,400 and it only needed a new stove and a minor floor repair, and is rented for $1,150.

We also have a 2001 4/3 in Lawrenceville we bought, with repairs before and soon after closing for $123,000, and it is rented for $1,295. We're about to fire the property manager, as they keep hitting usevery month with repairs, but refuse to send copies of the invoices.

The main problem in Atlanta is that property mangers want too much - most all want a full month to lease. That is way, way higher than many other places in the USA.

Originally posted by Mike M:

I have mentioned several times on here of a POST that showed the one year income and expenses for over 1.1 MILLION apartment units. That post showed the total expenses for those units to be 49.98% of MARKET RENT.

Mike, do you have a link to that information? It would be very helpful.

Those who are leveraged are probably the ones hoping they have low expenses, just like people with no savings hope they do not lose their jobs. Better to be prepared, and if things work out better, is is a nice surprise.

Jon, sorry I did not know you are in Atlanta. We bought one in Lawrenceville. and one in Acworth last year. If I could find a manager who did not demand a full month to lease and ten percent, I would like another.

A good consultant should be able to give you good advice.

If the stairs were the only thing between having a lead-based paint free building and not, I'd not hesitiate to get a lead abatement contractor to rip them out. Are they wood or metal? Metal could be stripped, but these sound like wood. Stripping wood is often a waste of time if the lead-based paint is the lower layers, as it "soaks" or infuses into the wood, so it is really necessary to remove the surface of the boards one by one with power tools, and expensive approach rarely used.

As for carpet, that is NOT considered encapsulation, and an XRF will read through it.

Kills is not an encapsulant. The real encapsulants are like very thick rubbery paint, maybe 1/16" thick.

Some states have a certification/license for radon consultants.

Originally posted by J Scott:

Lead paint is tougher to detect and I'm not sure what the requirements you'll face in your area with respect to remediating LBP. That's a good question for a home inspector, a GC or for the building inspector.

I am a mold, asbestos, and lead expert, and aam happy to help. First, this is not something for a home inspector or contractor. Asbestos and lead inspections and other consulting have to be done by properly trained and certified/licensed consultants. That does vary state by state. '

What does not vary state by state are the federal EPA and OSGHA asbestos & lead regulations. You have to assume anything which might be lead-based paint, or lead-glazed ceramic tile is, and have have to assume that anything which might contain asbestos does until you know otherwise. Many states and some counties have additional regulations.

Stay away from bleach! Fiberlock and other companies make excellent clean-up products.

For an extensive mold clean-up, you may want to have a good local consultant plan, oversee, and document the work, preform clearance testing, and prepare a formal report. Otherwise, you will have nothing but a bill from the contractor to show to anyone in the future regarding the mold issue.

RRP does apply if you are doing the work to get it ready to rent or sell.

I am an expert on this subject as I own an environmental consulting company and have over two decades of experience. Inspection is required by common sense. Assumption is required by regulation. RRP is on EPA's web site. There are also many state and local laws and regulations. Do not forget the other federal agency regulating lead - OSHA.

We have noticed that all types of government tenants are more likely to complain about indoor air quality issues, and almost all of the complaints are bogus.

"This is because for the past several months I've mostly been wholesaling deals to hedge funds and large out-of-state investors. We're making profits in the $20-25K range; given that our average rehabbing profits over the past 5 years is $20K, I'm happy to be wholesaling for that amount or more." - Just more confirmation that the big funds are over-paying and making far smaller returns than those of us who are "small investors." I'm happy we got two houses in Atlanta.

Yes, find a good local consultant and have asbestos & lead surveys done. You may also want Phase I Environmental Site Assesssments (Phase I for short), depending on location and value. Once you are in the chain of title, even for one minute, you are 100% liable for the cost of cleaning-up soil and/or groundwater contamination unless you had a proper Phase I performed. A, L & Phase I together should be $5,000 to $7,000 per property, less if some of them adjoin. Hire your own people, as lender's have consultants who "understand their risk tolerance" and that is probably very different than your risk tolerance!