All Forum Posts by: Owen Dashner

Instead of telling a newbie that "If you do not have these connections get them of find them If you have to ask price this clearly shows you that you do not know this or the basics in investment property", why don't you share where and how you got your information/knowledge? I mean, you remember when you first started in the business, right? Was it helpful to you back then if someone basically told you, "You don't know what you're doing" when you asked them a question?

Gaining knowledge and experience is a process- not an event. Please share how you become knowledgeable in estimating repair costs.

Couple of questions for those experienced stagers:

1. Have you ever used furniture rental stores to supply your staging items? I have considered this as an alternative to worrying about buying the furniture and then worrying about storing it after the sale...

2. Has anyone experienced theft/vandalism when staging a vacant house? That would be another concern with a houseful of furniture sitting in a vacant property....

More often than not, you will likely receive a counter offer from the REO asset manager, even if you shoot them a very low offer. Just do it- who cares if they say no?

I have purchased several REO's in my area, and every one of them was without water and heat. If the bank refuses to turn on the utilities so you can do an adequate test on each, just budget for a replacement for the whole shebang when formulating your offer. If the bank won't budge, move on to the next one.

I just paid $2000 last week to have a new 95% gas furnace installed (materials & labor), and I had a new 40 gallon water heater installed a month ago for around $750.

Plumbing and electrical can be highly variable depending on what is currently in place... Is it knob and tube wiring? Is the panel updated and is it adequate for the necessary wiring? Is the plumbing copper and PVC, or is it galvanized?

A complete rewire of a house can be expensive, as can a complete re-plumb. But if the plumbing and electrical are more recent, your costs can be much more reasonable. I would suggest you attend a local REI group and ask for electrician and plumber referrals and get some bids as well...

Can't say I'm really familiar with the labor costs in CA, but I would estimate around $20- $25/sq ft for a complete interior remodel. That is assuming an average to above-average finish level on materials (i.e. no granite, travertine, etc.).

This is based on my experience in my area, so adjustments may be warranted.

I started by buying my primary residence, then keeping it as a rental after buying another primary.

Then I flipped two SFH's to get some cash (minimal profit on the first one, great profit on the second). After that I started buying REO's, rehabbing them and then renting them.

I plan on sticking with this model for awhile (flip one, buy a rental or two, rinse and repeat).

I have also used Foremost to insure vacant properties while rehabbing. Like Tim, I received a pro-rated refund once the unit was occupied- but I also changed carriers once rehab was complete.

I would suggest you bite the bullet and get the vacant property policy while rehabbing, then either change your policy to rental ins. or switch carriers.

In essence you will only pay for the vacant policy on a prorated basis, so you won't be out that much dough- especially compared to the risk of potentially having your policy voided by fibbing on the occupancy status.

I have also used cheap frieze ($.78 sq/ft) on a couple of my higher-end rentals. I bought the dark kind with speckles and a couple other colors mixed in. It appears to hide stains better than the one-color type.

Time will tell, though- I just installed it last year.

Mike, any thoughts on frieze?

Merry Christmas! I hope everyone has a healthy and wealthy 2009!