Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
×
Try Pro Features for Free
Start your 7 day free trial. Pick markets, find deals, analyze and manage properties.
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Ed O.

Ed O. has started 65 posts and replied 650 times.

Post: Prospective tenant income verification question

Ed O.
Posted
  • Investor
  • Statewide, MO
  • Posts 692
  • Votes 348

Employers will usually demand a signed relase to provide you the info. I'd recommend trying to have them fill out a 1005 / VOE. Modify the standard form to take Hud's name off it as well as anything suggesting it's for a loan. It looks professional and it asks all the right questions.

https://www.efanniemae.com/sf/formsdocs/forms/pdf/sellingtrans/1005.pdf

If you get static, simply tell them you're underwriting their application similar to a loan.

Post: EPA "lead paint certified" electricians, drywall, plumbers?

Ed O.
Posted
  • Investor
  • Statewide, MO
  • Posts 692
  • Votes 348

The class could be summed up real easy. They took content that could be learned in 2 hours, spread it out over 8, and then gave a us a multiple choice test and informed us that if anyone failed, they would "work with them to help them pass" i.e. redo their test on the spot to pass them. I paid $300 and shed a full day of production for it. Brutal. The environmental companies just love this program. They probably grossed 15k for the 8 hour class and had 2 instructors.

Post: Tenants w/o SSNs...legitimate?

Ed O.
Posted
  • Investor
  • Statewide, MO
  • Posts 692
  • Votes 348

I have never rented to any illegal individuals, but have heard from many who have. They never call the health dept., complaining about things, they are more likely to pay the rent on time as well. If in doubt, request a bigger security deposit, among other cautions...

Post: Sewer pipe bursting

Ed O.
Posted
  • Investor
  • Statewide, MO
  • Posts 692
  • Votes 348

It rambles a little bit, so ask if you have any questions.

Also, about the job we're discussing, is it under the house or in the yard?

Sewer Lateral update:
2nd time around:
Used a concrete walk behind wet saw (rented). This allowed us to minimize waste and greatly reduced the amount of concrete we had to break up. It dramatically sped things up and reduced the amount of time and labor needed to do the job.
DO not use a jackhammer as in the notes below. Much more efficient as to time, labor and materials to use a walk behind concrete wet saw.
***** BEWARE: THE GAS SAW PUTS OUT CARBON MONOXIDE. WEARING A RESPIRATOR WILL PREVENT YOU FROM SMELLING ANY FUMES. YOU MUST ADEQUATELY VENTILATE THE WORK AREA ******
When using a concrete saw, a jackhammer is not needed. A sledge or dead blow hammer will be sufficient for the minimal amount of breaking up concrete that needs to be done.
Sewer lateral notes:
Prep:

With plastic sheeting and some scrap luan, I used an air nailer to nail the luan to secure the plastic to the joists (not necessary unless basement is finished or there's a lot of stuff in the basement). I taped the bottom of the plastic to the floor with duct tape to secure it.
Try and plan where you’re going to set the dirt until you backfill. Have 6-12 buckets on and for concrete / debris removal.

We didn’t use a locator and were guessing the floor drain went straight out to the street and that the stack tied into it with a Y. We were wrong, the stack came down, and went straight towards the main line. The floor drain tied into it with a Y. The existing floor drain was 4”, we ran it in 3” - plumber’s choice.

Since we didn’t use a locator or a camera, we started where things were backing up - the floor drain. We followed the drains around the floor this way. There ended up being 2 failed spots, a 2” line from the kitchen and part of the floor drain line.

If in doubt, rip it all out. We almost didn’t tinker with the 2” lines, because we were beat. Luckily, we did, because we also found another spot that was really weak and we would’ve been hosed.

Pipe:
4” PVC main line / stack.
Floor drain 3”
Kitchen drain, washing machine drain 2”

Tools used:
Jackhammer, pry bar, dead blow hammer, air nailer, respirator, earmuffs, goggles, safety glasses, scrapers, chisels, shovels (round for digging, flat for filling/cleaning floor), tub for mixing concrete, a ****** trowel.
Have a 2 x 4 on hand for the concrete repair part.

Tips: use spray paint to mark your path during demo… it’s easy to fall off course.

Setting the floor drain: do not set it until you pour the concrete. Take a piece of pvc, the same size as what the drain is run in and cut it longways. Place this piece over the vertical pipe. Place the floor drain on top of it. When you have poured the concrete around where the floor drain is to be located, slide the floor drain into place and let it set. After the concrete is set, cut the pvc down to the appropriate level.

Things I would’ve possibly forgot:
On a washing machine drain coming out of the floor in the basement: be sure to build in a p trap underground.
Same with the floor drain - build in a p trap.
Connections to the lateral must be made with Y’s and not T’s. Use a street 22 or 45 off the Y to tie into your run to make things easier.
My plumber said it's typically a 3 day job. We did it with about 42 man hours of labor and had it all done, short 4 bags of concrete to fill in 21 hours. With a few more laborers, a bigger truck, and more buckets it could've been completed quicker. We also worked against some unfriendly variables, like a tenant horder and a warm house.
When buying the concrete, ask the employees to bring it out to the car on a forklift. They'll help load it too, which is nice after a long day.

Pitch required:

3" = 1/4" per foot, 4" = 1/8" per foot.

Post: Sewer pipe bursting

Ed O.
Posted
  • Investor
  • Statewide, MO
  • Posts 692
  • Votes 348

Is the pipe under the home or in the yard? Under the home, especially if a basement is not the monster it appears. I worked on 2 sub foundation repairs this year. Did one the hardest way possible and one a much easier way. If you're going to do some of the labor in this scenario, let me know and I'll post my notes. If at all possible, let the plumber connect the pipes and do nothing else. If you can sub out or do the grunt work, you'll save a ton.

Post: EPA "lead paint certified" electricians, drywall, plumbers?

Ed O.
Posted
  • Investor
  • Statewide, MO
  • Posts 692
  • Votes 348

It would be foolish to test if you were not going to remove more than the maximum amount of painted surface. If you hit lbp, then you're obligated to disclose it. I haven't hit it yet, the units I have worked on were built in the 50's and 60's. The older the home, the more likely you will find it.

Post: EPA "lead paint certified" electricians, drywall, plumbers?

Ed O.
Posted
  • Investor
  • Statewide, MO
  • Posts 692
  • Votes 348

From the wonderful manual and equally painful bootcamp on this subject that I attended:
If you disturb more than 6 sq. feet inside
or 20 sq. feet outside

of painted surface, you are subject to the work practices requirements.

I really doubt you would disturb that much on a simple electric panel job.

Post: AC and Copper Theft Issues

Ed O.
Posted
  • Investor
  • Statewide, MO
  • Posts 692
  • Votes 348

A pad lock on the disconnect may also slow down a more novice thug, when it comes to stealing a condensor.
You could also pour a concrete pad and possibly bolt the condensor down to the pad.

As it pertains to a theft on the day of the close, I think it would be the problem of the person owning the property at the time it was noticed. If the deal closed and then it was noticed, I think you're off the hook. The downside of putting a cage on the unit is that it will send a bad message to potential buyers. You're in a tough spot either way.

Post: Delinquent property taxes

Ed O.
Posted
  • Investor
  • Statewide, MO
  • Posts 692
  • Votes 348

If you have a mortgage, call your loan servicer and see if they can help and set up an escrow account.

If you have no mortgage on the property and it is sold at auction, to the best of my knowledge, it will not impact your credit report.
Also, I do believe if the property is sold in excess of the delinquent taxes that excess funds by law go to the person losing the property. It may be a state level question.. more info will get a more solid answer.

Post: Tote the note - renters want to buy the house

Ed O.
Posted
  • Investor
  • Statewide, MO
  • Posts 692
  • Votes 348

What sort of rate would you be giving them? For an owner carry, I would start at 8-9%. If they want a 4% rate, tell them to get their credit together (not literally). I wouldn't refer to the extra 5k as a penalty, if you can avoid it.
If I was in your spot, I would offer a fixed rate for 2-4 years and then tell them they need to refinance you to cash you out. To make them at peace with it, you could, provided it's legal, allow them to stay in the loan, but with a rate bump of .5% per year or something like that. This would encourage them to go out and get a loan.
The odds of someone repaying a loan over 15 or 30 years to me are slim. Lots of things change. I have sold rentals to the existing tenants, and it went great. If you're in a position to buy, you might consider a 1031 exchange.
Can these people not qualify for conventional financing? That aside, get the home under contract with deposit and terms before inquiring on this. If they find out they can get financing elsewhere, they may want to buy a different house, and you wouldn't want that...