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All Forum Posts by: Nicholas W.

Nicholas W. has started 8 posts and replied 206 times.

Post: Building Code/Code Enforcement Questions

Nicholas W.Posted
  • Investor
  • Germantown, WI
  • Posts 206
  • Votes 364

Serious question: What happens if you don't pull out permits? How are those things caught? Let's just assume the work is done well and to code.

Post: How much can $20,000 in rehab can you complete in your area?

Nicholas W.Posted
  • Investor
  • Germantown, WI
  • Posts 206
  • Votes 364

The thing is you're going to get answers all over the place.

What impacts the cost of a rehab, more so than geographic location, is the quality. You can buy really cheap stock cabinets, laminate counter tops, and 79 cent per square vinyl and do a smaller kitchen for a few thousand dollars. If you opt for quality cabinets, stone counters, tile backsplash, under cabinet lighting, and $5 per square tile floors where you'll spend $15k on the kitchen alone regardless of the area you're in.

Post: WHO ARE YOU? What do you do besides real estate?

Nicholas W.Posted
  • Investor
  • Germantown, WI
  • Posts 206
  • Votes 364

Some how I've convinced people to pay me to make their grass long and then pay me more to make it short again.

Seriously though I own a lawn service business, primarily mowing and fertilizing, that has treated me pretty well and gives me 5 months off every winter. As I purchase more rentals I plan to cut back on the amount of time I spend on the lawn service.

Post: Do I need a permit if

Nicholas W.Posted
  • Investor
  • Germantown, WI
  • Posts 206
  • Votes 364

You won't have a problem with the appraisal except for a most likely lower price because a carport vs a garage will almost certainly hurt your value. For the most part an appraiser could care less how a property got to the way it is, he's just there to tell you what it is worth as it sits now.

The tax assessor would be your issue and the building department in general. You'd have to talk to them to determine if you'd need a permit for it but the answer is likely yes. Would the average person get a permit for it....? Probably not.

Post: Need help on building a new garage

Nicholas W.Posted
  • Investor
  • Germantown, WI
  • Posts 206
  • Votes 364

You will need a permit although your contractor will handle getting that.

You should go talk to the planning department to make sure you can build a garage there.

A typical 2 car garage will probably run you between $12-20k.

Post: Septic Installation Issues

Nicholas W.Posted
  • Investor
  • Germantown, WI
  • Posts 206
  • Votes 364

I'm not sure if you have a case but I would definitely contact an attorney. I agree with you that the engineer should be held responsible and hopefully his suggestion to sell in the dry season is in writing because that's irresponsible on his part and would probably not sound good to a judge. In our area they have to do a perc test before installing a septic system and the results determine whether they can install a traditional septic (much cheaper) or a mound system. It sounds like your system is a traditional septic field but should probably have been a mound system.

Originally posted by @Stewart McMillan:

Thanks @Lumi Ispas, they responded with an offer for $3k, but the attorney was unwilling to add language regarding the condition of the unit, i.e. they won't guarantee there isn't damage beyond normal wear and tear. 

Additionally, one thing that's been bothering me, and I'm interested to hear Chicagoans' takes on this, is that technically these tenants have not terminated their lease. The RLTO states:

The tenants sent a notice of intent to vacate 24 hours after they notified me of the power outage. According the RLTO section above, this was too early. Additionally, the language in their letter made no mention of termination of lease, only that they would be leaving the apt on 5/31. They have not sent me any formal termination of the lease, so technically the lease is still active, correct?

If the lease hasn't expired, then what gives them the right to pursue their security deposit? Granted, I did not hold funds in a separate account, but it appears that's a moot point if I return the security deposit in a timely manner with interest. See RLTO section below.

I'm taking "subject to correcting a deficient amount of interest paid" to mean "in the event that the landlord doesn't return the deposit with enough interest". 

I think it's easy to pile on and focus on the obvious errors I've made, but it seems the tenants made some errors as well. Also keep in mind that I offered to put tenants up in hotel, pay for groceries, etc. The unit's heating is forced air, so they had heat. By all indications they stayed in the unit, but I was still happy to reimburse them for more than prorated rent because I was appalled at my mistake.

@Brie Schmidt and @Jeff Burdick please poke holes in my RLTO argument, I've been spending too much time on this and wouldn't mind just settling, but I wonder if I can, at the very least, negotiate down further after citing these mistakes to the attorney and the tenants. 

Thanks @Ronan M., your earlier post motivated me to do some more homework on this.

 I honestly have little to add to this discussion because I'm not from Illinois but your assumption that they had head just because it is a gas furnace is incorrect. I don't know of a single furnace that doesn't require electricity to operate at least some portion of it. In the case of forced air the fan doesn't operate on gas just the burner, furthermore the valve won't open and the burner won't light without electricity. It is very unlikely and bordering on impossible that they had heat if the power was out for 3+ consecutive days.

Post: Drainage Issues... is a landscape architect the answer?

Nicholas W.Posted
  • Investor
  • Germantown, WI
  • Posts 206
  • Votes 364

I don't have any specific contact for you but you would probably be better off contacting a basement foundation company.

Post: Can you help me price tile accessories?

Nicholas W.Posted
  • Investor
  • Germantown, WI
  • Posts 206
  • Votes 364

This is going to vary quite a bit you can buy a $10 bag of mortar or a $50 bag of mortar. You can mix the grout with water or grout enhancer. It's just like anything there are low cost and expensive options with the quality varying respectively. If you're installing on a slab as I would expect you would in Florida for a very rough estimate I'd figure on 50 cents to a dollar per square foot over and above the cost of tile.

Oh and yes the dry mortar is not only cheaper but better quality than premixed mortar.

Post: HELP!!! First Invest Property Deal Going Bad.

Nicholas W.Posted
  • Investor
  • Germantown, WI
  • Posts 206
  • Votes 364
Originally posted by @Greg H.:
Originally posted by @Nicholas W.:

Do you know anyone with a contracting business of any kind? What I would likely do would find a way to work it out with a contractor that he "bids" the job for $5k. He buys the $3k in materials (as he would need the write off from a tax stand point since the $5k will be considered income.) You perform all the work as you planned and then he bills you the bank the $5k and takes a bit off the top to cover his taxes and trouble and gives you the rest. I'd think he'd need $750-1000 to make it work on his end since he will have to pay tax on $2k of profit. It would be a really messy deal but it is a potential solution.

It is against Federal Law(Yes it is) to make any repairs or alter a HUD property in any way prior to closing

 Who said anything about prior to close? I was referencing the renovation loan that his bank offered him that was contingent upon him using a contractor and not doing the work himself.