All Forum Posts by: George Wines

Hey Scott, I have to second the meetup idea of @Frank Houpt and @Jeff L.. Even though I still classify myself as a newbie investor (I dont have a property yet), it would be great to talk with other people and hear their stories

@Kevin Grinstead that is good to think of, thanks for mentioning that.

@Matt M. @Bill Hamilton I didnt think about having a professional walking through it with me...sounds really obvious now, but thanks for explicitly saying it

@Anson Young @Micki M. Thanks for offering to walk through it with me. I was too slow to act on this one, it was under contract soon after I posted here.

I really appreciate the community support from you guys

I am a genuine newby when it comes to trying to estimate rehab. I have never owned my own home and I have never worked as a contractor. I have been meaning to read the book on estimating rehab costs (but Ive been reading more basic books first). I have been looking in the Denver market (read insane) and I am continually shocked how high properties are selling for.

Anyway, there is a 3br/1ba SFR selling for 180K. The inside needs to be completely redone on the including the water heater and the HVAC. I didnt see any signs of foundational cracking/major water damage/and the roof didnt have major visible wear and tear (I didnt climb up there). It has 6 rooms total and is 1008 sq ft. It was built in 1948 but doesnt have any clear signs of asbestos that I saw (popcorn ceiling/asbestos tile). It has wood flooring that is in liveable (but not nice) shape, and it looks like carpet is covering the rest of the hardwood.

I would estimate ARV to be between 270-320K. Most recent sales being near the 320K mark. Ive heard the podcast talk about the 70% rule a fair amount, but I dont know what a realistic estimate for the rehab would be. I would plan on putting in higher end furnishings (stainless steel appliances/granite counter-tops/and blowing out one of the kitchen walls to turn it into a more open concept style...yeah, lots of HGTV being watched at my house right now). I thought I would reach out to the community to see how people with more experience would estimate this rehab. Thank you for your opinion in advance.

@matt m what do you mean by might be contaminated?

@Jon W. I didnt even think about writing off trips to visit family. Thanks for the suggestion. I will definitely keep you in mind when Im looking at stuff back in MI.

@Jon W.Thanks for responding. I grew up in the Detroit area and my family still lives there, so I was interested in hearing more about the areas people are investing in. I am currently living in Denver and the market IMHO is irrational. The rental rates are really far out of whack with the purchase prices (at least compared to the MidWest). Anyway, I was considering investing in property back in Michigan for those reasons.

@Angela Harding what cities in Michigan do you invest in? Do you outsource PM or do you perform that in house?

@Sandro Visani, you can use rentometer.com for a good idea (its a freemium site but gives you 10 free searches). It has helped me out for quick market research as opposed to using Craigslist in the area/bigger apt buildings to use as comps.

Yes, I agree with @Marco G.. Instead of postulating when/why/how a market crash will happen (it inevitably will over a long enough time span), lets discuss the different scenarios and their effects on rent/property values. Something like if there are a lot of foreclosures, property prices are likely to fall. Im no expert so I would love to hear from somebody with a long tenure of real estate investing experience

I agree with a move to next Monday