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All Forum Posts by: Jesse Smith

Jesse Smith has started 26 posts and replied 86 times.

Post: Lateral Sewer Pipe Repair via Coating - Pricing?

Jesse SmithPosted
  • Rental Property Investor
  • Kansas City, MO
  • Posts 86
  • Votes 38
Originally posted by @Greg Dickerson:

@Jesse Smith you need to check with the city to see if they allow this to be done. Some want you to replace it vs lining it. It’s not super expensive to do for residential. Large commercial however is a different story all together.

The city actually recommended it.  They dug up my connection to the city sewer and repaired it, because there had been issues with the main line (city's responsibility).  While the pipe was open, they ran a camera up the lateral to the house and found some roots, which a plumber removed.  When the City called to give me the status update, the director of public works was the one who told me about the lining process.

Any idea what it should cost for residential?

Post: Lateral Sewer Pipe Repair via Coating - Pricing?

Jesse SmithPosted
  • Rental Property Investor
  • Kansas City, MO
  • Posts 86
  • Votes 38

Through a series of unfortunate events, I've recently learned about a plumbing innovation that repairs and extends the life of old lateral sewer lines (from the house to the city sewer).  

As I understand, the process is called coating or lining, and it involves clearing, drying, roughing, and then coating the old pipe with an epoxy product on the inside.  The product is then dried with hot air and forms a hard, seamless barrier inside the old pipe.  This fortifies the pipe and prevents roots from growing into the joints.  

Has anybody used this process?  If so, what should I expect to pay?  I've been reaching out for bids, but I like to have some kind of reference point for the cost going into it.

Post: Basement Ceiling - Take Out Old Popcorn Ceiling & Expose Rafters?

Jesse SmithPosted
  • Rental Property Investor
  • Kansas City, MO
  • Posts 86
  • Votes 38
Originally posted by @Theresa Harris:

Open rafters will allow more sound to come through and you won't gain any ceiling height by removing the drywall.  If you keep the popcorn ceiling, a coat of ceiling paint will do wonders to lighten it up.

Position the ceiling fan so it is over a table and you won't have to worry about banging your head.

You're right, the actual ceiling height wouldn't change by more than the thickness of the drywall, but it feels more tall and open with the space between the rafters.  That and moving the lights up create the illusion of more space.

Post: Basement Ceiling - Take Out Old Popcorn Ceiling & Expose Rafters?

Jesse SmithPosted
  • Rental Property Investor
  • Kansas City, MO
  • Posts 86
  • Votes 38
Originally posted by @Scott Mac:

Hi Jessie,

Maybe think about having an Asbestos test for the popcorn ceiling, drywall and the joint tape.

Good  Luck!

Thanks Scott.  I doubt there would be asbestos, since this ceiling was installed in the 90's, but always worth a test.

Post: Basement Ceiling - Take Out Old Popcorn Ceiling & Expose Rafters?

Jesse SmithPosted
  • Rental Property Investor
  • Kansas City, MO
  • Posts 86
  • Votes 38
Originally posted by @Cathy T.:

My first thought would be doing something to put a sound barrier between that unit and the unit above. This will cut into your overhead space, but would contribute toward the "peacefulness" of both units and make for happier (longer staying) tenants.

Solid point about the noise barrier.  The floor above is old hardwood flooring, so I doubt it would do much to insulate noise.  The popcorn does a good job of that.

Post: Basement Ceiling - Take Out Old Popcorn Ceiling & Expose Rafters?

Jesse SmithPosted
  • Rental Property Investor
  • Kansas City, MO
  • Posts 86
  • Votes 38

I own a 3-plex, which was converted from a large, old home (built in 1910, converted in the 1990's). The basement unit felt like a cave when I bought the place. Walls were brown, carpet was brown, and the ceiling is quite low.  It's a finished ceiling with popcorn over drywall, and it doesn't appear to be done very well.  You can see some discoloration and uneven spots.  Additionally, the ceiling fan hangs so low that I can almost hit my head on it.  

I've already removed the carpet and painted the walls white to brighten the space.  Now the ceiling looks dingy against the bright walls, and it feels very low.  I'm considering removing the ceiling to expose the rafters/ducts/pipes/wiring.  The plan would be to paint it all a single color.  This would also give the opportunity to replace low light fixtures with higher can lights.  I want to make it feel like a higher, more spacious area.

  1. What should I look out for in this process?  Potential pitfalls?
  2. What color should I paint the rafters/ducts/etc?  If the walls are bright white, would a dark ceiling make sense?
  3. Would I need to re-run the wires, if they are crossing the main part of the ceiling?
  4. Thoughts on flooring?

Thanks for the advice!

**First photo is from the original listing - The walls were MUCH darker than they appear.  First tenants also trashed the carpet, so it needed to be removed.

Post: Playing a Rigged Game?

Jesse SmithPosted
  • Rental Property Investor
  • Kansas City, MO
  • Posts 86
  • Votes 38

To follow this one up.  I actually got a call back from the agent today.  When I saw her name on the caller ID, I got excited.  Unfortunately, she wasn't calling to offer me the house.  Apparently, the seller wanted to know if I was interested in any of the woodworking equipment he had in the basement, before he threw it out.  (On our initial walkthru, my brother bought a chainsaw from him).

I agreed to take a look.  When I arrived at the house, the seller greeted me with a big smile and this was the exchange:

Seller - I really thought you were going to be the guy to buy my house.  I was sad when it ended up being someone else.

Me - I hadn't planned to bring it up, but since you did... If you wanted me to buy it, why didn't you ask your agent to call me back for a final offer?

Seller - She told me she did and you didn't want to go any higher.  Seemed kinda like she knew the person buying it, so they got the deal.

This is EXACTLY what I suspected had happened, and the seller confirmed it for me.  Ugh.  

Post: Playing a Rigged Game?

Jesse SmithPosted
  • Rental Property Investor
  • Kansas City, MO
  • Posts 86
  • Votes 38
Originally posted by @George Pauley:

This was a screaming hot deal, if your numbers were correct.  With $1100 rent, and $20k rehab, you could have taken the offer to $90k and still likely cash-flowed.  I'm kind of surprised that the property only went for $57,550, though apparently the seller was in a hurry.  That extra $50 does smell a little bit like the realtor was rubbing it in a bit.  :)

Remember that the seller's realtor has a fiduciary responsibility to attempt to maximize the seller's profit.  Likely the house went up for sale at $50k and the realtor's phone starting ringing off the hook.  Realtor then realized they had put the house on the market for too low and starting slowing things down a bit to see how much the price could escalate.  I don't think the realtor did anything wrong (other than putting the house up too low in the first place.)

It also feels to me like you put the realtor in a difficult position with your escalator bid offer.  In making such an offer you've let the realtor know what your bid price is.  And, again, the realtor has a responsibility to get best price for the seller.  Accepting anything less than max offer value feels like the realtor is no longer acting in the seller's best interest.  But I'm not a realtor, so I likely don't know what I'm talking about.

Remember that real estate is a relationship business.  Every deal should be win-win lest the other players stop wanting to do deals with you.

It definitely was a screaming deal.  I'm confident in my numbers, because I have 6 more units in the neighborhood, and they always go within a day of listing for rent.  Most houses sell between $85k (rough) and $150k (fully renovated).  This one was an outlier, because the seller needed to move by the end of next week.  

You're right about the seller's agent's fiduciary duty.  She did her part, but honestly should have listed at $80k, and it still would have sold in a day.  There's a small pool of folks actively scouting this area, but I was the first in the door on this one.  If I had pulled the trigger while standing in the living room, the house was mine for $50k.  I balked because I told my wife I wouldn't buy anymore until the latest duplex acquisition was fully stabilized.  This one was such an outlier, that it was too good to pass up.  By the time she agreed with me, it was too late.  

Post: Playing a Rigged Game?

Jesse SmithPosted
  • Rental Property Investor
  • Kansas City, MO
  • Posts 86
  • Votes 38
Originally posted by @Mike Dymski:

If you are getting frustrated over one property, your deal funnel is too small.

Nice work on 13 units...that is not small-time.

 100% accurate.  At this point, I'm very selective, and this house was a few blocks from my house.  Was an ideal opportunity.  Sad to miss it, but I am working to increase my funnel as a result.

Post: Playing a Rigged Game?

Jesse SmithPosted
  • Rental Property Investor
  • Kansas City, MO
  • Posts 86
  • Votes 38

Thanks @Jay Hinrichs.  I definitely will try the pre-written contract in hand.  That's a great suggestion.  

My offer on this one was all cash, $5k EMD, close as soon as the seller wanted, and assistance with removing his stuff. I'm not sure how I could have made it more favorable to him, other than a larger offer number. I just wish I had been able to make the offer when he was standing in front of me, rather than having to go back through his seller's agent. That definitely opened me up to the bidding war that ensued.