All Forum Posts by: Michael Evans

Good job getting the inspection report done. However, it is not enough. Look at how many times he recommends a "licensed professional" to evaluate it. Get three bids for each item and be there to meet and walk the property with them. Also, keep in mind the electrical is VERY important. Not a place you want to cut corners.

Good luck!

2 Votes

Chicago, Illinois

Quote from @John Warren:

@Joanna P. FHA appraisals are funny. On really nice properties they will create all kinds of issues, and then on marginal properties they will be no issue at all.

Your inspector appears to be very thorough, but a lot of these photos are things that don't bother me personally like reverse polarity outlets, etc. With that said, porches are no joke in Chicago. If your porch is end of life, that is not something you can get a handyman to fix. The pricing is all over the place, but the low end is 15k that I have seen, and the high end is 45-50k. I think a smaller one like this is probably in the middle, but if you are doing FHA then I doubt you have that sitting around.

The mold/fungal growth thing is in every house in these areas. Unless it is pervasive, you can fix it by fixing the water leak and then cleaning and painting with oil based kilz. We run into mold literally every week remodeling these old apartments in the base kitchen cabinets or in basements.

The foundation cracking is an interesting one. Without actually seeing it this could go either way. If these are smaller cracks, then you can have them injected with epoxy for a few hundred bucks. If they are structural then that is a different story. This property is not a brick and masonry building so you are more likely to have issues than the masonry buildings.

0 Votes

Chicago, Illinois

Be very carful when doing business with family. If there are any misunderstandings along the way, you could permanently damage your relationships.

Make sure everything is in writing, understood and signed by all parties. Have the paperwork done by a good Real Estate attorney.

Good Luck!

1 Vote

Western NC, North Carolina

Before you sell your house, make sure you have another place to live first.

I sold my house in California last year but didn't realize how difficult it would be to find another place and how expensive rentals are.

0 Votes

San Diego, California

Make sure you get a deposit from them.

Do you have a max number of guests allowed in the booking? You should get $75 per night per guest over 4 people.

Do you have a 'house rules" posted in the house and on the listing?

It it not a list of suggestions, they can be evicted for violations.

Make sure they agree in writing to the house rules and you have to monitor their stay, install exterior cameras and inform the guests that the property has security surveillance.

Visits to the property regularly by you or your PM, ask if they need anything or have any questions.

Good Luck!

0 Votes

Boston, Massachusetts

Quote from @Justin R McCullers:

We actually had a "professional" property manager hosting the rental. I own 15 long term rentals as well, all through a property manager, but they do not do short term so we used another company. It looks like Booking.com is the culprit. Unlike AirBnB, they do not have as much contact with the tenants, and the owner can not rank the tenants like you can on AirBnB. The people that have been kicked off AirBnB are going to Booking.com it seems like.

I am using a different property manager on a 4 plex that we made a short term rental on the bottom units, and a long term on the second floor. It is in a different area of town and that property manager does not use Booking.com, and so far it has done better but I am only a couple months in.

I am married, so I am a little worried if I hold the Jax Beach house, it has to be "forever" or much longer than 5 years because I will be giving up the capital gains. I am about 5 months out of that home at the moment.

Do not use booking.com! It does not screen the guests before booking. Screening is critical to a successful STR. You need to have strict "house rules" posted on your listing and also inside the property with a maximum number of guests, no parties, no visitors and no noise. Get a refundable $1k deposit. I would also impose a minimum age of 30. Violators need to be evicted immediately. Either yourself or a property manager needs to be on call 24/7 which a lot of Cities require now. Have cameras installed to monitor the exterior and be sure to disclose them in the listing.

Good Luck!

1 Vote

Jacksonville, Florida

I would check his contractors license and then report your situation. You can also go after his Bond. Then see if he advertises on social media; Yelp, Houzz, or Instagram and then post reviews. Don't exaggerate in the reviews just lay out the facts and make sure he reads them.

Good luck!

0 Votes

I would never put carpet in a rental. Vinyl plank is the only way to go unless you plan to replace the carpet every time you turn it over.

Good luck

3 Votes

Maybe change your strategy; instead of flipping it, put a GOOD tenant in and let them pay the mortgage for you. Think about creating generational wealth instead of a quick check. Also, don't forget you're going to pay tax on what quick check.

Good luck!

1 Vote

I found the same thing here in SoCal. The prices they have a property listed IS ARV without any rehab

3 Votes

Los Angeles County, California

All Forum Posts by: Michael Evans

Michael Evans has started 17 posts and replied 186 times.

Post: Is this home worth purchasing given concerning inspections?

Post: Is this home worth purchasing given concerning inspections?

Post: Financing with Family via an STR BRRRR

Post: Is it worth selling primary residence for capital towards REI

Post: Bartlett, NH - STR Booked For 40 Nights - Red Flags?

Post: Should I sell or rent?

Post: Mechanic's Lien of Flip Property

Post: Flooring for a Rental Property

Post: First solo renovation considering backing out

Post: New Western Acquisitions relationship