All Forum Posts by: Michael Cardenas

What are your thoughts on Home Warranties for Single Family Homes or small multifamily properties?

I believe it’s always best to plan to save for expenditures before their lifespan is up but could a warranty help minimize that spending?

Looking forward to your thoughts!

@Jeet Sangha

I’m a little late to the party but I invest in Bakersfield and used Jonathan Barnes.

He’s a CPA and attorney, very knowledgeable and priced appropriately for his skill set.

Hope this helps and good luck!

@John Mocker @Andy Brohard

Thanks guys, this gives me a bit more to go on!

Appreciate the help!

@Andy Brohard

Thanks for taking the time to respond!

Some of the agency's aren't issuing new policies during Covid, some of them don't like that the ADU is detached from the primary residence, and most of them won't insure because Unit B is currently under construction.

State Farm in Bakersfield is willing to cover once Unit B has the roof completed which is scheduled for in 2 weeks which is after my current coverage lapses.

I'm having a hard time getting coverage for my Triplex. It's technically considered a Single Family Residence with an ADU and Junior ADU.

The SFH is completely renovated and leased to a tenant. The ADU and Junior ADU are currently under renovations.

Bakersfield, CA

Total square-footage just under 3000.

Unit A: 4 bed 2 Bath

Unit B: 2 bed 1 Bath

Unit C: 1 bed 1 Bath

I currently occupy Unit C but would like a landlord policy so that I can rent Unit C after finishing my rehab on Units B and C.

Any help would be greatly appreciated!

@Doug Elkerman

From all of my research and all of my agents input I got a pretty good deal for it being on the MLS and considering this is still California.

I was looking for distressed properties out the gate. I have $75-100k budgeted for a full rehab and have started my contractor bidding process.

I’m hoping to spend less but we all know projects rarely go under budget.

Thanks for your input and well wishes!

@Doug Elkerman

I absolutely had an agent involved.

Hey all,

New member but long time listener to the BiggerPockets podcast and YouTube videos.

Tomorrow I will be closing on my first deal and needless to say I’m very excited. Not the best deal in town but I could see the potential and I just wanted to rip off the bandaid and get started.

I picked up a Duplex with and Additional Unit.

I'll be living in the ADU.

It was listed for $250k and I offered $245k Cash with the terms of evicting the ADU, One year homeowners warranty, and price reduction for any serious problems shown in the inspection.

My offer was accepted and I started the process on getting an inspection, reviewing the financials, and doing my overall due diligence.

After getting and reviewing the inspection report I saw that there are some serious issues.

- Partially updated electrical with need for rewiring the entire property.

- Partially updated plumbing with need for completion of a copper repipe and PVC.

- Stucco done in a sub par fashion

- New Roofing placed over old wood shingles

- Evaporative cooler leaking onto the roof.

- Overall outdated and ugly interior

Yes, It’s a lot. Like, a lot a lot.

That’s ok with me.

So with all things considered I asked for a $25k price reduction to $220k and they countered with $225k and I accepted.

I have a long road ahead of me to completely renovate the property but I believe I am financially prepared to hire professionals for what I can’t do and mentally/physically prepared to put in the sweat equity for the things I can do.

Thanks for reading and look forward to hearing your thoughts!