All Forum Posts by: Leo B.

@Jon Holdman

Thanks Jon.  Do you have any recommendations of a good portfolio lenders for properties in the Midwest (ie. Indy, Wisconsin, Missouri)?

What are the differences between a conventional and a portfolio lender?

 HI Carol-

Did the insurance cover all finish work (ie. drywall, paint, etc) and loss of rent also?

@Richard Dunlop

@Mark M.

Thanks for the replies.  Do you communicate to the tenants to constantly heat the home to at least 40 degrees throughout the winter months to avoid the risk of bursting pipes?  Or do they already understand this risk and do it anyway?

 Thanks George.  If the tenant continues to heat the home throughout winter, will there still be a need to eliminate the outside spigots?

 Thanks Dawn.  Did the $4K include finishing the space, ie. drywall, paint, etc?

@Dave Foster

@Bill Exeter

Thanks again for the replies.  I had a question about the equity in the subsequent properties to be purchased.  Same example as above:

$485K is the net after closing costs.  $400K pays off the original loan balance and $85K is the net profit.

I purchase three properties:

$60K PP with $30K down payment

$60K PP with $30K down payment

$55K PP with $25K down payment

$85K is the total down payment and the total value is $175K.

Because the equity of the properties don't total $485K in value, how will I be taxed and at what rate?

Thanks,

-Leo

@Richard Dunlop

Thanks for the reply.  What does the "winterize" process involve?

In Midwest cities such as Indianapolis, Detroit, Milwaukee where there can be some really cold winters, is there a concern about the old plumbing system in the home?  I've heard of old pipes bursting and causing costly repairs as a result.  How do you mitigate against these risks if there are no leaks in the meantime?  Do you re-plumb the entire house?  Is there additional supplemental insurance you can purchase as part of the homeowner's insurance policy?

I've heard of some rehabbers replacing the entire plumbing system with PEX plumbing.  What is the average cost to re-plumb an entire house in those areas?

Looks good, James!  I wish there was something like this for other Midwest cities, ie Indy, KC as this would be very helpful.

I don't think separating the D and F neighborhoods would add much value IMO.  If an investor is considering either class neighborhood, they understand the risks inherent to investing in those areas.  Would there be much difference in price and rental range anyway between the two?