All Forum Posts by: James Mc Ree

You need to consult your contract to determine what requirements your builder must meet, if there are any penalties you can enforce and how you get out of the deal if that is what you want to do.  At a minimum, you should have a list of the issues and a plan from your builder to resolve them.  You should be able to use that plan to project a closing date timeframe if not a date.

You might want to talk with the owner of the above unit to have the leak fixed.  That would be step 1.

I would dab it as @Thomas S. describes if that is all it takes.  There is no sense starting off a new tenant relationship on the wrong foot for such a small matter.

I think their minimum is only $100.  Read their site.

@Guido Sanchez Just to set proper expectations, due diligence and learning is much more than a 1 week activity.  You can easily spend several months looking for a good deal.  Don't settle for the best deal you can find the 2nd week of February.

Get to know the areas you are shopping in detail.  That alone usually takes more than a week.  Go through listed properties to get eyes on what they are really offering.  Look at sold prices for properties as those are your comps.  Look at rental offerings too if you are shopping for a buy & hold.  Model potential purchases so you can see how your numbers work out.  (BP has a calculator for this!)  Read and learn all you can while doing this and talk with lenders about what you qualify for.  Get to know contractors if you expect to need them.

I close on a new 3/1 SFR at the end of February. It needs minimal work, but has aged gas systems that are still operating. I am thinking I should replace them before a tenant is in there and affected by a failure, but am unsure on getting high efficiency systems or standard. My home inspector cited a need for a chimney liner ($1,000) as bricks are loose and 1 has fallen in. I can put those funds into high efficiency systems that are direct vented to the outside instead of through the chimney and avoid upgrading the chimney. Thoughts?

Water heater - Gas.  2008.  Operating without issue.

Furnace - Gas.  1995.  Operating, but needs work (inductor motor, maybe more - something about flame coming out horizontally)

Central air - 1995.  Presumed operational as seller disclosure did not mention otherwise.  Cannot test in Winter.  Ancient.

The plan would be to connect the water heater, furnace and an existing gas dryer into the direct vent to the outside.  I am waiting on quotes now for standard and direct vent options.  One contractor told me to expect the water heater price alone to double when going to a direct vent model.  That alone would eat the entire offset from the chimney liner if accurate.

I don't think high efficiency systems would enable increased rent right now, but it may reduce vacancy if I can successfully market the property as "comfortable living at lower cost."  Target rent is $1,400.  The home is an interior row home/townhouse in SE PA.  This will be a long term hold.  I don't know that I could market the property 10+ years out as having an advantage with high efficiency systems, but would avoid a disadvantage of not having them.

Turning your property into a recovery/halfway house is more than just the property.  It is a business that usually requires licensing, staffing, etc.  You could lease your property to a business that does this, but need to consider who/how it will operate in addition to zoning, parking, security, etc.  For sure, your neighbors will hate you if your property is in a typical suburban environment.

Talk with your township to get some good guidance on what your current zoning allows and how to start.  Opiod recovery is huge right now.

@Jim Growfer You might not be acknowledging the reality. Go with your premise - if the broker has a good deal....what does the broker need you for? The broker puts the good deal in the MLS which shows it to thousands of qualified buyers with no work. Prospects call the broker like crazy because it is a good deal and a sale closes with a qualified buyer who has funds to close. No middleman, easy - happens all the time.

The broker won't turn down help, but might not be inclined to pay you.  Try calling some brokers and see what they say.

Maybe you can get your buyers to pay you as a real estate consultant.

Start by setting written standards.  You can then cite the item(s) the applicant doesn't meet.

You may be safer by not rejecting anyone - you are "forever" considering someone and just taking a really long time to make up your mind.  It's a pocket rejection that might keep you out of court if you were to write you don't want young kids messing up your house which is where you will be if you wrote that.

The brokers have an interest in collecting their commission through listings and sales.  As a wholesaler, you have an interest in cutting out the broker so you can scoop the deal before they get it.  Isn't your idea inherently in conflict with itself?  You can always offer on old listings, but you are of no use to them if you can't close.  Show you can close and you might get on their buyer list.

Have you considered a (Skype) phone call with the prospect?  It doesn't need to be Skype or a video call, but you should at least request a current picture and copy of driver's license so you can at least recognize your tenant.

Texting is fine for sharing facts and short statements.  I think it would be hard to have a conversation about how someone maintains their current home and how you expect your home to be maintained via text.  Facts can be shared by text, but you miss the "Uh...um....hey sister - what should I tell this guy?" when you text.

Use this opportunity to think about how you will communicate for an issue.  For example, the tenant texts you there is a drip coming through the ceiling.   Do you want to just text back and forth to figure out what is going on and how bad the problem is or talk live?  It can be done by text, but I think it is much harder.

Keep in mind you are managing $10,000s of investment here, plus liability.  Communication is critically important.  Don't constrain yourself.