All Forum Posts by: William Coet

Originally posted by @Greg Gibbs:

Long time lurker first time poster! I just purchased my third IP in Durham NC. It was a foreclosure, 900 sf 3/1. I had planned to flip into a more usable 2/2. The area is just a mile from some of the hottest parts of Durham. There is probably 80k of upside in the flip.

Alternatively, Durham is very friendly to options that increase density and affordability. I could certainly get a duplex or even a triplex on this lot and use as LTR #3/4/5 for us. 3 brand new units has its definite benefits.

I’m a newly minted GC with past residential construction experience, both new construction and rehabs. Our plan was to flip a few to get more capital and eventually end up with 10-12 doors.

Is there anyone who has done the same tear down and replace? The numbers seem to work from my napkin projections at a build cost of $90/sf.

 Are your build costs of $90/sq ft. materials only?

From a cost perspective alone (even after savings from electricity), it is still more affordable to get a used chevy, gmc, or ford.  There are fleet trucks (verizon, etc.) that are being unloaded by those companies and have been on a maintenance schedule.  They can be picked up for 5k.  Even after you pay fuel costs and maintenance you can buy 2-3 of these and pay their costs, before you hit the cost of a new tesla cybertruck.

Two items that haven't been addressed are:

1.  Ease of maintenance and repair. What is their repair network like?  The average mechanic can do many repairs on GM, Ford, Dodge, Toyota, Etc.  I've heard people are going to wait for these companies to come out with EV for the maintenance/repair element.

2.  The glass broke in the demo! What else is going to break that they claim won't?

A family member is on the deed to the house with her husband.  They have two young kids together.  He doesn't have a job and has been abusive.  She has a full time job and pays nearly all household expenses including all childcare costs and the home mortgage, taxes, etc.  She has left the house and moved in with a family member along with the two kids because of the abusive behavior.  She is continuing to pay the costs for the house.
In the meantime the deadbeat Dad is statying at the house and refusing to leave unless she pays him for half of the equity in the house.  He is leveraging the fact that he is on the deed.
Any ideas on how to get him out of the house and ideally off of the deed would be appreciated.
Thank you.

@Adam Scheetz  I'm wondering what your background is and how you developed the knowledge to analyze opportunities.  You could be the most important part of this equation!

Originally posted by @Jaron Walling:

@William Coet What was the total price reduction you asked for? How much did they come down? 

We presented a list of $6k in repair costs.  They came down $1,500.  I think they would have come down more because the realtor (who does a lot of fanniemae) had told me they typically come down around $1,500 at a time when a property is first listed, however we were aware of another buyer who was very interested in the property and didn't want to risk fanniemae taking the accepted offer off the table.    The realtor did say that typically the price negotiation is done prior to the contract being signed.  This was a sfh under 100k.

We provided a list of costs we discovered during the inspection and asked for a price reduction and they made a small adjustment.  Better than nothing I suppose!

Originally posted by @Judy Parker:

The town where most of my investment properties are located, has a new Building Code. All dwelling units must have 10-year sealed battery-powered smoke/carbon monoxide alarms. The Kidde units cost approximately $35 on Amazon. And best of all, neither tenant or Landlord has to replace batteries annually. The incessant beeping was one reason why my tenants kept tampering with the detectors (too lazy to install a new battery in the detector).

We use the 10 year sealed units, and they are very nice compared to dealing with changing batteries.   I contacted the manufacturer because I had some that nuisance alarmed, and they said it was likely because of dust build up.  They recommended a can of compressed air to blow the dust out, and it has worked so far.  I am going to make it part of my routine maintenance to clean them out to avoid nuisance alarms in the middle of the night and maintain them.

@Ben Leybovich I wasn't able to edit my last post in time, but I was specifically referring to what can make  a sub-market be cost prohibitive for new construction of multifamly? Is it primarily because of lower rents in C and B sub-markets? Is it because of land acquisition costs?

Thanks

Originally posted by @Pat L.:

I also agree. We had a local landlord fined (I believe it was $10k) for disabled detectors when a fire did in fact occur. 

That is great photo! Installed on "The House" would have been even better.