All Forum Posts by: Shane H.

@Brandon Proctor

I'd look at comps in the neighborhood and look at them on a Per Sq Foot basis - think that would give you a good idea on what to realistically pay and what your ROI may be when finishing a basement.

Quality of finish would have to come into play a little - however I'd think what's typical for the neighborhood sets the standard on the pricing PSF though.

That's the way I'd look at it.  Your realtor should be able to help you with this information.  You might find that quite a few of the homes with an unfinished basement may be overpriced and use the pricing PSF to support whatever offer you may give.   

Hope that makes sense.  Finishing a basement isn't cheap, however if you do some of it yourself it wont break the bank.

 For Toilets - a good house brand is Pro Flow - Ferguson Enterprises sells them - they are probably one of the larger plumbing supply houses/chains in the US - they are primarily wholesale however have a retail side at their locations as well.

My buddy is taking over his dads plumbing business (primarily new construction) and that is their standard builder grade toilet - they typically only work on high end houses and that's all they use with no problems unless someone wants an upgrade.  (Then they'd probably use Kohler which I believe is the big "major" brand Ferguson carries)

If you have a Ferguson Supply locally would highly suggest the Pro-Flow toilet line along with a Bemis or Pro-Flow soft close easy/clean seat. If you have an account there can be had for a good price and maybe the same or less than you'd pay at HD or Lowes for their cheap house brands.

They have a line of faucets as well that aren't bad if you were doing a flip - however Moen/Delta are probably better.  

I beg to differ and all is scenario/state specific - My main point was if an agent states something is covered a specific way get that in writing from them when purchasing the policy.  You as an agent carry an Errors and Omission Policy on yourself in case you screw up.  Thats another lengthy topic, however when asking specific questions about coverage or making coverage changes I would do in person and get documentation a change was made etc, or have correspondence via email.

Simply my advice from the claims side and based on my experience.  Some agents unfortunately dont know their head from a hole in the ground or fully understand the products they are selling so it's always best to protect yourself as the consumer.

@Michael Lenahan

You'll want to see a copy of the policy to see what the differences are - every company will sell something different.

I've been an insurance adjuster since 2004 so feel I'm qualified to answer this question.

Typically ACV really only affects anything on the outside of the house - roofing, windows, siding, fences, etc -- So the primary event that will damage said items I mentioned is a hail/wind storm among other things.  So if you have a hail claim and windows/roofing is damaged - they determine half the life of the windows/roof has been used up - they will pay only 50% of the cost to replace/repair said windows and roofing.

RCV (replacement cost value) In the same example - the insurance company will only typically pay you 50% of the cost up front then you have to deal with recoverable depreciation where once the items are replaced you will get the rest of the cost to replace said items.

Again - you'll want to read the policy - everything is state and company specific - I can only speak in generalities and most of my experience has been in FL and KS.

If your roofing/siding is already old - ACV is likely the more logical choice unless you plan on having a hailstorm sometime soon and want a new roof.  But if you've been in the investing game a while you probably already have connections who can replace the roof at a reasonable cost already.

Now if the rental house burns down and you have an ACV policy they should pay out at the fully insured value - they will not and should not per my knowledge depreciate the property if it's a total loss so to speak.  The depreciation is a judgement item left up to the adjuster and most should be fair with it, if not more fair than they should be.  Again ask the agent/look at the policy - if you are asking your agent anything specific I'd do it via email and if you write the policy with them save the emails in case anything happens in the future and they gave you a wrong answer etc.

Maybe another property adjuster will have an answer for you.

I stick to Moen or Delta - though I havent been happy with Delta quality lately so have been buying Moen valves when anything needs replaced.  Think some of the Moen line is still made in the US - could be wrong - but most of Delta is made out of country it seems like.

Good thing about either brand is a plumber can go in and rebuild the valve for next to nothing and it will be good as new.  Can save some time/money on remodels.  Have had several 30 year old Moen/Delta valves rebuilt -- change out the trim and looks like a brand new shower or tubshower valve was installed.  

Heres another selling point for Buildium -- To send out 1099's to contractors/rental owners - just takes a few mouse clicks if you have the proper database built up in the software.

They make it even easier to stay in compliance with the IRS -- any W9 I obtain from a vendor can be uploaded to the cloud and attached to the vendor in the software - if you are ever audited - easier than ever to maintain the documentation needed.

One thing I am going to focus on for 2016 is any new vendor I use, will have to fill out/provide me with a W9 before they are paid.  I realized I missed 2-3 of them last year and have one more to obtain tomorrow before I'm ready to send the batch of 1099s out.

Buildium has a bit of a learning curve but once you pick it up it's easy and could easily be taught to someone else.

@Matt R.

I'm guessing this property must be located on the coast or you aren't used to seeing Wal-Marts?

As much as I dont like what the company has become, they typically will be a positive for the immediate area.  In the midwest/great plains at least, any place a wal mart (be it a neighborhood market, supercenter etc) has located, the immediate property nearby shoots up in value and plenty of development always follows on the outparcels and surrounding property.

Having a home located near a wal-mart should not be a negative thing, unless the home is located on the main thoroughfare granting egress/ingress to the store parking lot, then possibly the increased traffic may negatively affect the value or rental desirability.

@Gabriel Graham

Welcome Gabe - have you thought about the types of investments you'd like to pursue, ie residential rentals, commercial or perhaps even more specific medical office which I'd assume you already may know a lot about given your dayjob?

Lots of good info here.  There are a few physicians in Wichita I'm aware of that invest in RE as well, however they typically take a more hands off approach naturally due to the nature of their dayjob.

@Roger Laughary

I'm a big fan of Buildium - have used it since 2010, they 've made plenty of improvements since then and are constantly adding new features.  I find it very affordable when you consider the time savings if you utilize the full suite of features available to you.

@Jay Hinrichs

Just giving you a hard time.  Didnt want everyone on the board to think all of us rural KS and plains states folks are all unstable living in squalor....ha.

I agree - hard to make money when your margins are that slim, would make more sense if you lived close by and could own a handful of the homes and create some economies of scale.