All Forum Posts by: Mark H.

I think it's easy to forget that not every American amasses much wealth over time. With divorce, job loss, forced retirements, etc - it isn't just "first time buyers" who are getting priced out of the housing market by speculation like this. In my area, anything under $150k is getting multiple bids, and we have a lot of 40-50-60 somethings that are being forced to rent, even though they would save money by buying.

I'd be concerned about chargebacks. Quite often the credit-card companies will take the money back now, and let you fight for it back later.

The first step is getting the actual "units" consumed off the water bill & figuring how many gallons were actually used. You can figure out the consumption of the sprinklers by adding up the flow rates. But I'd agree, it could be a toilet. Or water could be expensive there. No way to know without the data.

Nationstar has been buying lots of junk paper from the big boys, and they're in growth mode to buy even more. As of last year, they sucked to deal with, and with the garbage notes they're buying and servicing, I can't see that situation improving. They're legit, but flaky. If the deal is right, it might be worth waiting for them to get their act together.

I'd be really careful about "converting" bedrooms - if you do it properly, you're going to need permits & licensed tradespeople - each bedroom needs Hvac supply & returns, the walls will need outlets & you would probably need windows big enough for "egress" in both bedrooms. To do it right & safely isn't a weekend project, and if this is a long-term hold, you've got years to have a problem pop up. work done without a permit doesn't add any value at resale, and you don't want tenants thinking they have a "stick" to beat you with.

I'd go back into those rental comps & see how long they were on the market before they were leased - in some areas, a 2 bedroom might be a pain to rent, in my area, they rent fast. To be honest, I'd have been all over that data before writing an offer. If you *need* 3 bedrooms, legal conversion costs should have already been figured up.

If this is really a long-term business for you, you need to run it like a business. Get all the data & don't take any shortcuts - they will backfire on you.

The r-value of a foam roof isn't going to do much for you. Foam on the underside of the decking would be the best solution from an r-value standpoint, but it's wildly expensive.

Blown cellulose is cheap & effective. I had 10" (r30~ish) blown into my 1800 sq ft house for about $800 - that's material and labor. Drywall repairs should be fairly inexpensive as well.

In my area 2 bedrooms aren't very common, but they pull almost the same rent as 3 beds. You attract a different demographic, which isn't always a bad thing - they might actually take better care of the house.

I don't flip, but I'd never show an incomplete house. The value you're adding by rehabbing is giving the buyer a complete, finished & nearly "perfect" home. Your target demographic doesn't want the hassle, mess, and uncertainty of a "project", they want to write a check & pick furniture.

Also, never visit your own car while it's in the body shop for repairs, no matter how well the repairs are done, you'll still see a crumpled-up mess when you look at it.

Just my $.02

My experiences with contractors have generally been good - i wasn't griping about contractors. For someone who doesn't know the sources, buying from a contractor, even with a markup might still be cheaper than the big-box stores, and much less hassle. I'm in a major city, so we have some niche suppliers that have incredible pricing - if you *know* there's a store that sells doors & moldings, or the factory that builds cat-trees for Costco that sells carpet pad for $30 a roll, or the drywall supply house, etc. most contractors could double their money on materials & still beat retail at the depot.

After a few rehabs, I've found myself telling contractors where the deals are.. But I'm cheap & finding those deals is *fun* for me, not work.

The top pic is common in my area - for about $20, you get a replacement plastic "box" that has both valves & the drain line for the washer. On my last rehab I found a box that had a single "lever" which would shut off both hot and cold water to the washing machine, that's my favorite style.