All Forum Posts by: Janet Behm

Howard,

You probably know that it isn't a contract unless it is a legal contract and signed by everyone. 

What does the contract say?

Usman,

We recently finished a rehab on our downtown duplex.  Built in 1921 (100 years old).

We did a full gut remodel on the second floor apartment.  Lath and plaster was deteriorating and powder.

This is a frame construction. Back in 1920, the used real 2" X 4" lumber. It was not dried. When they pulled the walls down, lots of boards were twisted and deformed (not kiln dried). Our contractor had to do some "magic" to replace just the worst of the studs.

The wiring was all old and in three stages of distress...various remodels and upgrades over the many years.  It all had to go. Fortunately, we didn't have a fire!

Asbestos insulation came at some stage in this process. Thick above the ceiling and blown into walls between studs (which settled and was nearly useless).

Terrible openings ALL OVER letting air in and out.

We replaced the gas water heater with electric to avoid venting issues.

BUDGET was 35k for both apartments.  

ONCE YOU START--YOU CAN'T STOP

Ended up being 100k (covid material shortages and delays geeeze)

Absolutely beautiful!!! we are getting 2.4k total rent per month

Megan,

Welcome!

There are local REAL ESTATE INVESTORS ASSOCIATIONS (REIA) in most metro areas.

Go to National REIA:   https://nationalreia.org/ to find local groups.

Deals are being made at the meetups.

ALWAYS REMEMBER TO DO YOUR DUE DILLAGENCE!

Chris, You are pretty resourceful, but, you don't want to become homeless. 

Nearly every investor I talk to, says, "I wish I hadn't sold that property."

And finally, remember basis and how you will handle the capital gains.

Probably 85% of the people reading this, wish they had YOUR problem!

Pam,

The ADA (The Americans with Disabilities Act of 1990) is a civil rights law. It prohibits discrimination based on disability.

There are various disabilities.

Are you willing to have them, at their expense, build an accessible ramp?

Are you willing to have them, at their expense, install a commode to accommodate their needs?

There are hinges for doors that actually move the door out of the way to add about 2” of extra clearance. I would offer to have hinges replaced, at your cost, for a signed lease. (this may also save you having to replace banged up doors on their move-out).

Installing lever door handles, at your expense, to accommodate.

Best strategy, admit that the home is not currently accessible. “You may come and measure hallways, bathrooms, and doors to determine if the structure, in its current state, will be acceptable.”

This way it will be their decision to pursue a lease.

Do an internet search: americans with disabilities act

Duplex in downtown Salt Lake City, built in 1921.

Today we got the final inspection passed!!! 5- months and 4X our original budget...but once you start?!?!

Question 1. It’s been so long ago, and so many properties come and gone. But every purchase started with a plan.

   a.  What are the criteria for taking a deal?

          1. Pre-qualify for lending

          2. Have a home inspector ready

          3. A screamin’ deal probably has something that isn’t being disclosed

     b. Location (do I really need to repeat this?)

     c. ‘Passive’ income is the result of buy & hold. Will it rent…if trouble arrives will it sell?

Question 2. Set up criteria of what the property MUST have for it to be “trigger pullin’ worthy”

     a. This could be a simple as three-bedroom, two-bath, off street parking

     b. If it “ticks” the boxes, make an offer (an offer is not a contract to purchase)

Question 3. Shorten the education to deal path with repetition (do I really need to repeat this?)

     a. Determine to make an offer every week. Poise comes with experience.

     b. The final test is to close on an offer

     c. Now you are part of the landed aristocracy.

Congratulations! I knew you could do it.

Jimmy, read your lease. When did the lease expire? How many days does the community standards allow for snow removal?

Getting the job done yourself is "good karma" and you, as the property owner, is where the "Buck stops." Good avoiding a fine from the "snow police!"

@Dave 

@Dave Foster You are a powerful example of niching. I tell our clients, "Be world class at ONE thing, rather than mediocre at everything!"

Plus, you are prolific!

@Marcus Auerbach

This is a variation of the problem with doing a Cost Seg and then selling the property in 6-months...nasty surprises.