All Forum Posts by: Johnny S.

I've done 3 in the last Year in New Albany, IN. Just across the bridge from Louisville, KY. 2 were sold to investors looking for rentals sold in the low 40's. The other was sold to a family in the mid 60's. Both rentals were under contract within the first month and the other home took about 2 months to find a buyer. All three were sold FSBO. Granted I haven't done this for too long and don't have a ton of exp., but I haven't had a problem getting rid of homes in this price range.
As said earlier, if you buy right, you should be ok. Also, I've done most the work on these homes myself. And, if worse comes to worse and you can't sell, you'll have another rental home.

I have replaced the entire flow in a house. It was only 1000sqft, but still not fun. On your scale of difficulty, i'd def. put it around an 8 and maybe higher depending on what is making the floors wavy. It could be there really isn't any foundation that the house is sitting on, or termite damage, or water damage, or just a couple busted joists. A lot of times previous owners will just lay plywood over the old sub floor to mask problems. The house I just did had 2 layers of sub floor, 2 louan (spelling?) layers, and 3 different vinyls all in the kitchen.
The floor joist were actually sitting in the dirt and moisture and termites had eaten them up. We had to take about 40 -50 wheel barrow fulls of dirt out of the house. Dig pier holes to lay a new support beam, replace the sills/plates, all new pressure treated joists, new plastic. It really was a mess. It took me and 2 other men about a month to complete everything.
I would rather not do it again and will try to stay away from those properties, but I guess if the opportunity is there and I have nothing better on the table, then I guess I would do it again.
Hope that helps

Very Helpful, Thank you.
Joey

How long do tenants legally have to stay in the home once the lease is finished? Also do you have to give written notice to tenants that you will not renew the lease?

Thanks

Thanks for the feedback!

Here's my numbers:

purchase $56,000
Closing $4,000
Holding fees for a 50k loan, i have the money for repairs, closing and the 6K (3 points, 4 months of int, plus utilities, and home owners ins.)
$5,000

I'm fairly confident I can get the repairs done easily. I have 1 full time guy at $10 and can hire 1 or 2 other individuals for $8-12/hr. I've worked through being hurt before broken hand, cracked rib, concussion(i'm still young). I think the repairs will be in the 10-12 range but just threw the $15 in there for just in case.

Selling and closing costs should be right around $10K

So
56,000
4,000
5,000
15,000
10,000

So right at $90K.
Repair time should only take a month, most of it is just cosmetic.

I think an asking price of around $110,000 would be fair considering this home is a few hundred square feet more than similar homes in this price range.

Thanks
Joey

While I think this is a good deal, i'm a little hesitant to jump on it because i'm still new at this and I'd probably have to get a HM loan which is something I've never done.

Property is in Southern IN (in the louisville, KY Metro area)
It's a REO priced at $55,900
1485 Sq Ft. 3br 2ba 1 car attatched garage.

Repairs in the $10-15K range (assuming i'm doing most of the work with some day labor)

The only comps i have are from houses forsale in the neighborhood, with asking prices from $109,900 to $125,900

yahoo real estate

If you take it down to the studs, then you better get all you're permits taken care of. Someone will def. be nosing around that.

I'd say go for it. It doesn't sound all that bad. I'd offer around $10K and move up to the $15 only if you have to.
How's the foundation? That would be my biggest concern. A lot of the work is just going to be basic labor, and you should be able to find some help in the $8-10/hr. range.
I don't think you'll need to replace all the sheeting on the roof, just replace what it bad.
I'd keep as much drywall as possible, only take out what is molded, and patch the holes.
Like what was stated earlier, this needs to be more than 1 1/2 bath, atleast 2 maybe 2 1/2
Materials shouldn't be too bad since you don't have to buy top notch products. Home Depot has some nice unfinished oak(face) cabinets that would set you back about $1000 for the whole kitchen.

good luck with it.

Home depot credit card (6 month no int./payments for purchases over $300)
Other credit cards.
That's what i do, i'm still building up cash and credit, so using the credit cards has worked out for me. I'll only pay interest for maybe 2 months before the house is ready and i can make the minimum payment to keep cash on hand.

You can't really calculate drywall needed by using the sq. ft. #.

You'll just need to go into each room and hallway and figure out how many panels (4x8) sheets you'll need. That's assuming you have 8' Ceilings.
Drywall panels come in 4x8 4x12 and i believe 4x16. And you can get them in 3/8" 1/"2 and i think a little thicker but i don't know what for.

Example:
Standard 10' by 10' room with 8' ceilings.

2.5 sheets per wall for a total of 10 sheets

also if you are doing the ceiling
You'll need another 4 sheets (almost 1 sheet left from scrap)

As for installing it, you should be able to get someone to hang it and finish for $.30-1.00 per sq ft. (32 sq. ft. per 4x8 sheet) So $10 to $30 per sheet.

hope that helps