All Forum Posts by: Paul Bowers

That's impossible to do.  Go look at three houses, they all need HVAC system, water heater and all new appliances.  That would cost about $10,000.  If the houses are 1,000, 1,500 and 2,000 square feet that comes to $10, 6.67 and 5 per square foot respectively.  Some costs, floors, paint, etc can be based on square footage.  A roof on a 1500 square foot ranch will be more than a roof on a 2,000 square foot two story.

Flex Seal tape?

That seems extremely dangerous.  If I do a water heater, furnace, A/C and a new electric service it costs me virtually the same regardless of the square footage on the house.

@Brenda Budzinski, you asked for the pros and cons.  I would ask you the same exact question, what do you see as the pro to you renting to her versus someone that doesn't intend to run a daycare in your property?

@Rob Terpilowski, do you mind going into a little more detail on the original funding on the deal?  It looks like you managed to secure 100% financing for both the purchase and rehab amounts.

Congratulations!  Great job.  How did you find the property?

Lakefront property in the Finger Lakes is spectacular but the taxes can be staggering.  What lake is it on?

i would be tempted to call the scammers and set up a time to meet up and sign a lease.  Then you make sure you are accompanied by the authorities for the meeting.

Calculating cashflow without accounting for CapEx isn't much different than leaving out vacancy, ongoing maintenance or taxes for that matter. It HAS to be accounted for or you're just fooling yourself.

It also seems that $10,000 in total rehab costs for an 11 unit purchase $100,000 under market value may be a bit hopeful.