All Forum Posts by: Mark De sagun

@Aaron K. Thanks for your input. I was actually surprised EQ insurance wasn't more. I got quoted for about $60/mo for a 15% deductible. Well the GC is actually an investor himself who's company could do the seismic retrofit so I was really surprised he suggested not doing it. It's the structural engineers that I'm worried are just telling me it has to be done so that I spend the money to retrofit it. 

I guess the choice I'm struggling with is if I should pay the $10k to retrofit the foundation, leave the foundation and get EQ insurance, or retrofit the foundation and get EQ insurance? 

Scenarios:

a.) I pay to retrofit, if an earthquake comes, the retrofit could help or it could still be a total lose depending on the magnitude of the earthquake. 

b.) I don't retrofit but get EQ insurance and if an earthquake comes, at least I'll be in a better position to rebound financially if it's a total lose.

Any owners out there with older properties that have decided not to seismic retrofit their rentals?

Thanks for your input @Bjorn Ahlblad. I've had seismic engineers take a look and give me estimates and they've emphasized that it needs to be done. My realtor said that the house has been standing this way for over 100 years, it should be fine but it's up to us if we want to seismic retrofit. We closed on the house with every intention to upgrade the foundation but then this GC made a good point that if there's an big earthquake the foundation retrofit may not even help. After reading some other forum and blog posts, I started thinking that maybe just getting a good earthquake policy would be a better investment.  So now I'm not sure...

Anyone have any older rental properties that they've decided to not seismic retrofit?

Hi everyone! My girlfriend and I just bought our first house hack in Los Angeles. The house was built in 1914. During inspection, we were told that we need to Seismic Retrofit the foundation; bolt down, upgrade posts and piers, and support cripple walls. We got estimates for $15k and $8k to have the work done and were credited some money by the sellers for repairs before closing. But yesterday, a General contractor told us that we might just want to leave the foundation as is because retrofitting won’t guarantee that the house would still be standing after an earthquake. So now we’re thinking of just leaving the foundation alone and getting earthquake insurance instead to cover us. What do you guys think? The GC suggested we change out any galvanized piping left instead. Would love to hear different opinions and advice. Thanks!

Hi everyone! My girlfriend and I just bought our first house hack in Los Angeles. The house was built in 1914. During inspection, we were told that we need to Seismic Retrofit the foundation; bolt down, upgrade posts and piers, and support cripple walls. We got estimates for $15k and $8k to have the work done and were credited some money by the sellers for repairs before closing. But yesterday, a General contractor told us that we might just want to leave the foundation as is because retrofitting won’t guarantee that the house would still be standing after an earthquake. So now we’re thinking of just leaving the foundation alone and getting earthquake insurance instead to cover us. What do you guys think? The GC suggested we change out any galvanized piping left instead. Would love to hear different opinions and advice. Thanks!

Hey @Craig Curelop! I'll be at work during that time, but wanted to know if the Q&A will be posted for viewing afterwards. 

Edit: Nevermind. Just realized it's only if you bought the physical copy. I only got the audiobook.... Thanks anyway!

@Steve Lehman Also, why do you say there is only a small possibility that home values in the southern part of Christian Park rise due to the criminal justice center? I would think that more professionals coming to the area would be a good thing that could improve the tenant pool. Similar to a hospital?

@Steve Lehman thanks for your detailed response. You obviously know the area very well because you described almost exactly the property I'm looking at in Eagledale. It's a turnkey 3/1 renting for $850. Tenant just renewed so it's leased until Oct 2020. How often are you seeing turnovers in Eagledale? And how long are you seeing properties vacant for while waiting for a tenant? What percentage of the rent would you save to account for vacancy in Eagledale? The current property manager did say that with all the other rentals in the area, even a $10-15 raise in rent can cause tenants to look else where. For my analysis, I've done my best to account for a turnover every 2 years and I'm predicting ~6.5% ROI if rents never raise. Not a home run, but I think a good, more predictable base hit to start my real estate investment portfolio. Also, I've had people who are not selling me the property vouch for the Eagledale area. Thanks again for your input, I'll continue to do my due diligence.

I was also just shown a 4bed/2bath property on 26th St and MLK St. in the King Commons area renting for $900/mo. This property was really interesting to me because of https://www.greatplaces2020.org/king-commons-1. But my research shows that this specific area currently has a lot of turnover and vacant houses so probably not for me at this time. But curious to hear if anyone thinks this area is worth investing in right now in hopes/anticipation for gentrification and appreciation. 

Hi @Angela Smith Was wondering how your rental in Christian Park is doing? I'm very interested in a property close to English Ave and Sherman St. Would love your input.

@Jaron Walling Do you see Twin Aire improving with the opening of the Justice Center? As I learn more details about the Indy market, it seems like there is so much going on in the city with different initiatives and development that it can make these areas of opportunity.

@Art Perkitny Thanks for info. The property that I'm looking at would be in an orange highlighted area. While I have read that crime may have increased slightly over the past few years, I've heard nothing but good things about Eagledale as a rental market.

@Jaron Walling Thanks for the example. It'll be something helpful that I can reference. I hear a lot of good things about the Speedway area being a good rental market that has shown some good development recently.

Any thoughts on the Christian Park neighborhood?

@Ric Ernst thanks for the advice. I definitely plan to visit Indy soon. And I've definitely realized BRRRR isn't the strategy I want to start with.