All Forum Posts by: Robert Curls

Just for follow up.  I elected to repair rather than replace the AC unit, they put the new compressor in and everything was good to go.  Then I got a call from my tenant at 7:30 this morning that the air wasn't working again.  Apparently that compressor went out also.  Although I think I know how this story ends...

@Stephan K. Its a 4/2 1800 sq ft.  They are pricing a 3 1/2 ton unit.  Its a major installer (been in business for over 30 years) and they are very close to the property.  I've used them in the past.  They certainly aren't the cheapest but they do good work and its pretty hassel free, I call they show up and they call me when their done.  I don't do "deals" any more where "a tech someone knows" does it.  It always bites me in the rear, or consumes too much of my time. 

@Gary Hall Our Rents are due on the 1st, and late after the 3rd.  Typically when the tenants pay on time the PM disperses funds to us on the 6th.  If the tenants are late its still only about a 3 day delta.

Hello BP Community.  I'd love to get your oppinion.  One of my rentals (in the Tampa area) recently had a compressor go out on the AC unit.  I've owned this property for ten years, it was formerly my personal residence but has been a rental for about 2 years now.  The AC unit is around 13 years old.  I also need to replace the pool pump at this particular property as its around the same age and is on its last leg.

To fix the compressor (replace the compressor) it was $2,200, to replace the whole AC system is $5,700.  I have the cash reserves to replace the whole thing (thankfully) but I'm curious to know what others think.

Additional background, I have to replace another AC unit on my primary residence this year also so I'd like to be in a position to quote two units and get a discount.  The rental is in a class A neighborhood and brings in a pretty penny on rent, the tenant always pays on time and I intend on keeping this property long term.

So, would you repair and be in a better position to buy on your terms, or would you replace now?

Thanks for your opinions.

@Arthur Pujols and @Nancy Brook I'm a fellow buy and hold investor in Pinellas (north Pinellas)  I'm always interested in getting together with likeminded investors in the area.  We used to do a BP meetup but the slacker, I mean nice guy who used to put them on went and had another baby ( @Doug Merriott ) But perhaps we should put something back on the calendar.

@jason I'll give it to you, that's pretty "ballsy" to go from a 4 unit to such a big undertaking with the 24 unit.  I'd evaluate your competition in the area, a quick CL search found a nice little apartment community in plant city that's renting for 775 for a 2BR. Is the community you're thinking of buying nicer than this? / better location?

 http://lakeland.craigslist.org/apa/5088440186.html

I'm curious, how are you planning on funding the rehabs here?

Kristen,

I wouldn't be so fast to sell the bungalow.  I'm assuming your father has taken depreciation on the house over the coarse that its been rented.  (disclaimer: I'm not a tax strategist or accountant, seek the advice of a certified accountant)  He could be looking at a huge tax hit if he sells.  Even if he pays 15% in capital gains taxes that would be over $50K in taxes that he's losing.  Not to mention 5-6% for realtor commissions ($15K-$20K) and potential closing costs (3-5%, or $9K-15K).  All in your $350K could be more like $250K. 

 A better solution if you need the capital to fund your flip business could be to take an equity line against the rental and use those funds.  The rents you collect could easily pay the payment on the equity line while you're using the capital, and you still have that sweet piece of real estate that will continue to appreciate.

Hi @Michael Goodman I'm curious on a few items, 

1) when did you purchase these properties

2) Did you pay cash or are they financed?  If financed how much cash do you have into the deals?

3) What type of properties are these? SFR? Condos? MultiFam? 2/1? 3/2?

Hi Chet,

I have a great agent in Pinellas, he'll need a recent wind mitigation and 4 point inspection and if you want flood insurance you'll need an updated elevation certificate as well (whoever is doing your survey can usually do this too.)  I'm with several others on here, get an umbrella policy that will cover you for liability up to $1m.  This is more valuable than $1M on the home as it will cover you in more aspects (ie auto accident).  From what I've been told you'll need a minimum of $300K of liability on all of your properties as well as high liability limits on your auto policies.  I'll PM you my agents contact information

Rob

@Mark J. I'm sorry to hear that, is he a licensed GC?  Do you have an actual contract with him?  Someone a while ago (probably on one of the podcasts) said that he takes a photo copy of every sub's drivers license.