All Forum Posts by: Joshua Tessier

In a crazy COVID world one shortage I didn't see coming was EPDM Roller Rubber Roofing.  I had a roll left over from another job but it was only approximately 20' I needed more like 40 to guarantee that I had enough.  I had told my roofer I had it but neither of us measured it before committing to a date so now I was short and screwed!  I called all around and no one had anything in stock to buy. I was being told try back in 6 month's as we are being told by suppliers we aren't getting anything!  I asked one roofing company if they knew anyone and tried the last source I knew of.  Sure enough no 10'X50' rools and nothing bigger.  Just on a whim I asked what's the smallest it comes in, he said 25'. I asked do you have any of those.  His response was no one wants rolls that small but he would check.  Guess what two rolls left!  I paid over the phone and ran down.  When I was in the yard picking it up another roofer was making fun of me for buying such a small roll.  When I told him they had one more in stock he about ran to grab it!

I sourced the foam board and my roofer provided the plates, screw and glue.  As a team we got it done and I couldn't be happier!

Always remember to check the job site I swear the place grows screws and nails in the driveway!

All wrapped up and just in time for winter!  My appraisal is scheduled for tomorrow the goal is to refinance and pay down the massive amounts of debt that were required to make this happen.  In the end it will be a great hold but it was more work and more complicated than I could have ever imagined. There a few small siding projects and things I'd like to do to pretty it up so maybe one more post before it's done done but in the end I'm happy with how this one turned out!

I have some great tenants and to be honest when they step in even though the location sucks the units speak for themselves.  When a tenant says they want a dishwasher I got it. When they want a washer and dryer in the unit got it. Off street parking got it. Overall it'll be a great property and I'm glad to have made it through!  I love to hear others disasters so I don't feel so bad lol!

Cash invested was almost $294,600 not $60,000.  The lead remediation alone was over $100,000 for just that portion.  4 Furnaces was almost $50K, Bathrooms were $20K, Exterior Paint was $7K it adds up quickly!  Make sure you have reserves upon reserves upon reserves if your gonna open a big can of worms for sure!

In my experience this is what happens over and over again with off market bank financed deals.  The bank wants a number so the appraiser looks at the sale contract that you gave the bank and the bank gave to them and say's ya I can justify this number.  In my case I bought a house in a VERY desirable two and the appraiser didn't use a single comp from that town.  I was purchasing so below the market value he was using comps for a 2 and 3 bedroom homes in other towns and ignoring that it was a 4 bedroom.  He was laze and inconsiderate in my opinion.  At the time I was pissed today I could careless as the price has doubled and I have made my month goals on it. 

The only issues you will see is your "Zestimate" or other online estimators will be low for years.  Essentially they look at the property as an outlier and think there must be something wrong with it.  So  until it sellers for a higher price it will always show low.

@Jonathan Bombaci feel free to follow along.

https://www.biggerpockets.com/forums/843/topics/749731-my-manchester-nh-4-unit-renovation?page=3

It’s been a long intense journey.

Paint is finally a warp! It's not perfect but it's done.  Sure I would have loved to repair more of the siding and cleaned up more and more trim pieces but in the end it's a great clean slate to keep moving forward with!  This one was a bear and I certainly have a few big plans to keep going with.  Paint work ended up coming to just under $7k for 1 coat of primer and 2 coats of paint.  Contractor was found by pulling cards at my local Sherwin Williams and calling 10-20 of them for quotes.  I was running up against the clock with wrapping before temps dropped to low to paint but we got it done and stayed within the manufactures recommendations so I couldn't be happier!

Next up will be this porch roof!  Quotes have been given roofer selected and how just crossing my fingers that he actually show's up and get's it done.  He's promising a one day turn around so we will see if it holds true but I should be ready to close this one out next week and move onto settling the dirty work.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $231,000
Cash invested: $294,600

Complete gut, made the property lead safe, 100% New wire, 100% New plumbing, all new appliances bathrooms and kitchens. This was a massive disaster but I was able to stomach it and get through it.

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $500,000
Cash invested: $100,000

8 Unit Property consisting of four Studios, three 1 bedroom's and one 2 Bedroom units.

What made you interested in investing in this type of deal?

Cashflow plain and simple. For me this was a big piece of my buy and hold strategy.

How did you find this deal and how did you negotiate it?

This was an on market deal. I placed and full price offer as it was significantly undervalued but was passed over. I persisted and kept coming back as I noticed it sitting on the market for month's after two other buy's fell through I was given the opportunity to close the deal.

How did you finance this deal?

Conventional commercial financing 20% down 5 year fixed on a 20 year term.

How did you add value to the deal?

This will be dealt with as a shell. The plan is to completely rewire, replumb and add new kitchens and baths over time.

Lessons learned? Challenges?

Don't give up. By continuing to follow up time and time again eventually I was selected as the next person up because I kept contact with the realtor.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No I choose and have choosen not to use a realtor in any of my deal. Lenders are chosen by who offers the best rates and terms. My best advice is shop around.

I question to you would then be do you think your efforts are best spent filing the police report and chasing the tenant or possible spending it speaking with your local and state legislators explaing your situation and helping them to understand the impact of the things they vote on.  To me you aren't going to see any movement from either.  You won't get anything from the tenant but also won't get legislation to change based on the first interaction with your elected officials but you will plant a seed and you will have a lever to pull to vent to with someone who might actually be able to drive change!  Best of luck in your purists keep us posted how it turns out.  

I wish you the best of luck but lets just assume your team gets you a win in court.  How is it you intend on collecting from this person?  I can't stand the way our system work's but in the end you simply can't collect from folks.  It's gonna take a team just to keep track and find where they moved to never mind if they have any assets to go after.