All Forum Posts by: Jimmy Kiefer

I am on the verge of purchasing my 1st property and plan to buy and hold the property. A property I have my eye on right now is in good condition as valued by the county accessors site, however it has a stone wall foundation and was built in 1881. If I am going to hold this property for 30 years, wouldn't it be a very relevant possibility that the stone wall foundation could give out? Then I would have to demo the property and most likely be out several thousand dollars. Should I ignore all properties with stone wall foundations? Let me know what you think, thanks!!

Originally posted by @Pat L.:

The only viable strategy is to buy them at a very low cost.......

We have some around 1830's but had to do extensive plumbing & electrical work. The lathe & plaster tear outs to accommodate insulation, as well as electrical, plumbing & forced air heat vent runs is a lot of work. We generally remove the old crumbling chimneys & go with high effic heating. Dump costs here for all that brick can run $4-$5k unless you can bury it in the yard as a "french drain" or a new shed base!! 

Window retrofits can also be expensive due to special order sizing on stone buildings. Then you have the chance your local bldg codes will require upper floor egress sizing (triggered simply by the window replacements). 

Roofing can also be an expensive nightmare...we often find 3-4 layers of cedar shakes then a couple of layers of roofing tile on sagging pine planks 1-2 inches apart. This necessitates additional (expensive) tear off costs, sistered rafters & all new sheeting.

Then there is the possibility that the replacement of the original clay pipe sewer lines will be another unexpected cost along with the need to install sump pumps that must pump to the new french drain you created out back, rather than into the sewer. 

They are challenging...

Very helpful reply on the challenging aspects Pat, I appreciate it.

Great response Tom, Thanks!

Several properties I am looking to buy were built around 1900. Should I avoid properties this old? Especially since I will be a buy and hold owner, does the age of these properties create an unnecessary risk? Appreciate any feedback at all!!

Will Do! Thanks!!

Thanks Jose!!

Within the next couple months I will be buying my first rental property. I will be implementing a buy and hold strategy with small multifamily properties. My question is, how do I narrow down my search to find the best property on the market right now. I have done my analysis on 17 different duplexes and one fourplex, factoring what profits would be after fixed costs (insurance, taxes, mortgage) and the 50% rule. I then see how much the seller would have to lower the asking price for me to make $100 of profit per unit each month. What else do I need to take into consideration? All the properties are in very similar location aside from a couple and they were all built within 1888 and 1910. Is the next step for me to go on site and check out the properties and the potential work that needs to be put into them (furnace, plumbing, roof, siding)? I would greatly appreciate any insight on what I am not taking into consideration or any comments any one has!!

Thanks.

Originally posted by @Fred Heller:

I can't think of a better example for the need for an online rental payment system. And I know you're going to say a lot of people don't have access to the internet. But even if only half of them paid online, think of the workload that would cut down.

Your accounting controls seem pretty solid. But I would never, ever accept cash. And I also wouldn't accept multiple forms of payment. One check or money order. That's it.

Good luck!

Does an online payment program exist that does not take a small percentage out of every payment? 

Great response, thanks for the reply Deanna!!

Is it smart to require tenants to have renters insurance and for the property managing company to be listed on the policy? On the plus side if the unit is ever trashed a claim can be filed, but does the added cost create problems? In my area average rent is $500, would requiring an extra $100 renters policy be a problem? Let me know your thoughts. Thanks!!