All Forum Posts by: Tyler Weaver

The problem with termite damage is that it is very hard to determine how extensive the damage is.  If it has a basement that is finished or you otherwise cannot see all the joists/structure of the house it can be hard to tell what is going on.  

Advanced termite damage can lead to sagging or spongy floors.  To fix something like that you will have to sister the damaged joists and possibly replace the subfloor.  That in itself might not be a big deal, but it will also lead to needing to replace the flooring.  If the main beam has been damaged, this could be a repair in the range of 5-10k+.  

Typically termite damage is typically related to moisture.  I would look into what is going on with water.  Is the property graded properly, are there any leaks etc.  You can also get a meter that measures moisture in wood and building materials.  This may be helpful to identify an underlying cause, and identifying how extensive the damage may be.

It can throw a wrench in your pipeline. Lets say you are doing a BRRRR strategy, as things decline and you are waiting for seasoning you may not be able to refi once that has occurred.

The vulnerable neighborhoods have the potential to collapse in value, and rents.  

It depends on your criteria.  If those comps of 90k are in good condition and are representative of what you will have after you put in 20k it does not meet my equity requirements.  I look for deals where the equity is greater than my purchase price + renovations.  

That cash flow sounds appealing though and would likely meet my criteria.  What kind of neighborhood is this in?

County tax values are not relevant really a good indicator of market value.

Though you do need to look into the current inventory, what development is happening in a neighborhood, and how many sales occur in that price range compared to # of houses in inventory to get an idea of where you can land compared to the comps.  If there is nothing on the market, pent up demand, you may be able to press up on the value of the comps.  If there is a lot of inventory, and you want to sell it within 7 days of listing you might have to go down a bit from comps.

Idk, 5% RE, 95% my future earnings potential. 

But in a more traditional sense, 100% RE.  Maybe 20% long  term rentals, 80% in single family development.  Slowly working on flipping that ratio.

Welcome to BP.  What area of investing are you most interested in?  Probably the best part of the BP Podcasts are that they open your eyes to the many paths and strategies that can be used to make real estate work for each individual.  

A great opportunity to meet other real estate investors, network, and learn is Joe Fairless' meetup:

https://www.eventbrite.com/e/cincinnatis-real-esta...

$100 a door was monthly. So you would need something like 166 units.. Though you can probably find closer to $200 a door. Funding this growth could be done through a mix of BRRRR and flipping. So while it will take millions of equity at the end, you will not need that much to get started and getting the snowball rolling down the hill.

Keep in mind, a a dishwasher replaces a base cabinet, so an inexpensive dishwasher may not drive up the cost of your rehab as much as  you think.  Not having one in most markets will disqualify you from getting high quality applicants to be interested in the unit.  

Turning the unit is going to be the most work. Maintenance requests as people move in and find things wrong etc.  If you don't think you have the time to do it now when everything is only neat and on paper you definitely will not when it comes time to dedicate time to the property.  

Going with a property manager is still not a passive investment. It might feel like that at times with one unit, but it requires management, oversight, etc.  But it will likely be passive enough to manage with a demanding job.

Agh, Mazunte. I think I know where I am eating lunch today.  

Madisonville has definitely seen a surge in the past few years.  There was a post on the FB hyde park mom's group a few weeks ago about Madisonville, and there was a cornucopia of stories about moving to Madisonville to raise their kids and loving it there.  I have been involved in a number of flips and own property there, and can say that even in the past year there have been massive positive developments there.  Madison Place has a draw for its walkability to Mariemont square, and in many places is much closer to the square than most of Mariemont.