All Forum Posts by: Milton Rivera

@Elenis Camargo

I am assuming that you are using some sort of move-in/move-out inspection report. If that is the case, this should be fairly straightforward, thank her for her feedback and send her a copy of the pre-move inspection that outlines the items that both parties agreed to.   You can also amend the form to include her feedback, initial/date it and send it back to all.  Explain that the form establishes the baseline condition of the property and the same form will be used during move out to compare the overall condition.   

@Ashley Davis

Permit responsibility can be outlined in the actual contract you signed with the general contractor and they will charge the cost of any permits required.  South Florida is famous for permit and contractor issues.  A few suggestions:

• Call the county/city and try and describe the scope of work to determine if a permit is needed. 
• Depending on the work you may not need a permit (patch and paint, replacing carpet, etc.)  The purpose of the permit is to provide protection to ensure the contractor is qualified and completes the work in an acceptable manner so don't look at it as an adversary position. 
• Some jurisdictions are more difficult to work with and may require a permit for small work such as replacing a lighting fixture and/or a toilet.  Most contractors will complain about this but the few that are professional will already know and can help make the process less painful. 
• Do NOT assume the contractor will know and/or will file for the permit.  There are a lot of small contractors that just don't to deal with the hassle of going to the process and the contractor may not even be qualified to do the work. 
• Once you have established a relationship with a construction team then you start to trust whether a permit is needed or not. 

Good luck

@Damon Porter

Structuring the business will depend on several factors including tax liability and asset protection.  You should put together a team (CPA and attorney(s) to help craft).

One way to do it is to have an "acquisition company" where all of the expenses are charged. Once the property is acquired and transferred to an LLC then you can start charging individual expenses against it.

@Bryan Cork

I look at a couple things to determine how involved the HOA is:

• Overall fees - In general, higher fees means they are more active and could be more difficult to deal with. 
• Review the HOA covenants and budget - During due diligence, make this a requirement for the seller to provide. You can then review in detail and reach out to the administrator for questions. Reviewing the budget will tell you about assessments, reserve funds, delinquencies, etc.

@Mark C.

Another potential issue has to do with the 1031 limits.   I believe in order to complete the transaction and not pay any taxes, you also have to:

• Identify the replacement property within 60 days and close within 180 days. 
• Purchase property of equal or greater value of the relinquished property.   
• The debt from the new purchase should be equal to or greater than the debt from the relinquished property.  If you do not want to increase the debt, you can bring cash to pay off the balance of the new property.   

@Jason Chalifour

I have been working with PS Atlanta for the last six (6) months.   Not a perfect experience but they have been solid so far.  Pros:

• Competitive pricing
• Good response rate
• Good communication when it comes to tenant payment/reports.
• Multiple draws during the month and prompt owner distributions

Cons:

• Lack of detail on reports
• Confusing monthly summaries 
• Cost of repairs run a little higher

@Luis Valdez

Looking at each of your concerns:

1. This means there was some sort of water intrusion/leak.  This could be a small roof leak or maybe water that got in during a windy storm.  This is something a certified inspection can look at.  You can also call your insurance agent to recommend a roofing company and have them do a courtesy inspection.  If there was a leak, the inspector can review the quality of the repair.   Changing the actual tiles is fairly easy and cheap. Tiles are typically used in commercial construction when you want access to things like sprinkler line and cabling.  You can change to a hard ceiling which is more conducive to residential construction, you can get a quote and work that into your numbers.
2. Hard to provide insights into your specific market.  You can look at crime rates and other rental property within the area and see if that has any significant impact. 
3. What is your competition offering?  If this is standard, than you can always try to install a small closet (30sf should do it for a stackable unit)  you can look at areas where there is water in the vicinity (think a bathroom and/or the kitchen).   

Good luck

Will be out of town, but please keep up posted for future events. 

@Jacob Mellow

Welcome to BP Jacob.  I am also in the Midlands area.   

@Ray Hayward

I would go with the environmental study first.  The primary reason being time, you can get the study done in 30-60 days and get the bulk of the findings by then (asbestos, lead paint, underground storage tanks, etc.).  This will allow a contractor to put together a decent remediation estimate (I would include a reasonable contingency since these rarely go as planned and the moment you tear something down you find something else to deal with).  This will give you a go no go number on the environmental impact.  

If the GC has done or is doing similar projects you can create a quick estimate using cost per SF and this will give you broad all in number.  It will take the A&E about six months to create a 50%-65% design that the GC can use to develop actual pricing.   You may want to explore some incentives offered by cities/counties and even lenders when dealing with this type of project.  I believe Fannie or Freddie have a green development incentive that could lower financing fees.

Good luck