All Forum Posts by: Jeyo Punnakottil

My current rental is a 3 bed 2 bath with an additional office room( donot have a closet) 1950 sq ft. Current rent for a 3/2 is 2200$ .Is it wise to convert the officeroom into a bedroom by adding a closet and then market it as a 4 bed 2 bath for 2450$.

What will you do if you were in my shoes.

@Tyler Condon

Always listen to your gut. personally i wouldnt do this deal at 43% DTI with a 2/1 buy down with hopes of things imrpoving in the new 2 yrs.Always hope for the best and plan for the worst.In this case you are not even planning for the worst . Do you have a sizeable amount of reserves.Things break ,ppty needs maintenance..taxes n insurences always goes up .If you are not cash flowing now how do you thing you will cash flow down the road? My mentor taught me this "A NO DEAL IS BETTER THAN A BAD DEAL"

@Michael Brattelli

Strted off at 4000$ but the standing shower is a night mare.. water seaped though and bcoz there was not plastic liners ,it damaged the studs.I have to redo the whole shower now.6600$ in all for repair .

@Alecia Loveless the fan is already attached to the light . It is a grouted tile standing shower.I bought it as is but the sellers did a sloppy job on the standing shower They didnot put hardy backer boards in the standing shower instead used regular sheet rock and tiled over it.To add to that they only used plastic liners to the bare minimum ,just on the flooring.Water seaped through the grout,damaged the studs .Now i have to redo the full standing hower..I hate it when people tey to cut corners just to save couple of pennies and cause a 10k repair to the buyer.

@Jackie Sawyer

I had the same issue on one of my ppties.The roof was too old but seller told me they donot know the age of roof.Got insurence while in escrow but the month after closing insurence company send a letter saying they are cancelling the insurence as roof is too old and needs to be replaced.I was literally screwed even though the roof had 4 to 5yrs left on it,with no visible damage on it but once an insurence compnay puts it out there that the roof is old its hard for you to get coverage as most if not all other insurence company will deny coverage sighting roof is old. I had to eat it up and replace the roof .12k went falshing infront of my eyes.Seems like you are in the same situation,try negotiating the roof with the seller .At the very least ask the seller to meet in middle,you eat up half and seller eat up half .

I did some stupid stuffs,yea i know But i need some advice .Here is the story

Teanant is good paying and pays on time and takes care of property as if it is their own home. Tenant complaint of mold growth inbetween grout lines in standing shower which is fully tiled.She says it is hard to keep up and has to clean every week and still black grime grows.I went and inspected it and asked a handyman who came to property to fix another issue to take a look.Handy man told the tenant (instead of talking to me) that it is mold and whole standing shower needs to be torn down.Tenant panics ,makes a fuss and ask for a professional inspection.I ordered one and it came positive in standing shower and also in the cabinet adjusent to 2nd tub bath.I got 3 quotes to remediate it. 4300$ is the what i am looking at now .But i cannot remediate it with the tenants in there.I have to relocate them to a hotel .Do i pay for their hotel expense?? Shouldnt tenants Renters insurence cover for their hotel expense?i thought renters insurence covers for their hotel accomodation if property becomes inhabitable.Their renters insurence denys it and says i have to put it on my landlord policy.Should i make it a claim( the entire remediation expense+ tenant hotel expense) through my landlord policy? Or should i just eat it up and pay out of pocket?I have 5k in reserves saved up for a rainy day event on this rental.

@Russell Brazil

Change insurece policy to llc name after the property moves to llc and have the landlord as added person of interest That solves the issue ,doesnt it?

@Chris Seveney i would challenge that. Think of the scenerio of something bad happening at the rental.. the extreme case the property had a fire and a tenant was killed ,lets say the surviving partner is suing the landlord for liabilities in a hige amount say millions .Yes they can come after your personal assets to recover that amount ,your primary home,your bak account,your other stuff if you own because you didnot have an LLC in place.Just having an LLc is not gona prevent it but will limit the lawsuit to what is inside the llc.The llC should be done the proper way ,and if books of the LLC are in order it will be hard to pearce the corporate veil.But if books of LLC are not in order,there it self you lost every protection from the LLC structure.At least thats what my research taught me.So it is always imp.

Investment Info:

Single-family residence fix & flip investment in Houston.

Purchase price: $150,000
Sale price: $270,000

SFR
shortsale
Buy price :150k
CC: 6250
Rehab :35000
Exit strategy :Flip
ARV: 275-280k

@Amir Mohammed

RUN....it is a scam.I had a similar experience while starting out in real estate.I was looking for private money and came across someone whom i met through Facebook .Similar case where he has been in business for little ove 7 yrs.Had a linkden profile. No website .I send him a deal and next thing he asks me is to fill out a KYC customer form asking me to hibe my bankninfo ,my company info and so forth.Luckily i did my due deligence and found it was a scammer.