All Forum Posts by: Sharon Rosendahl

At $840 per year are you getting that much in benefit? If you have a $1000 fridge go bad after a year you pay the $840 plus $100 service call for them to cover $500? The two checks would cost what and they do what at no charge? Are you required to buy all covered appliances from them? Is there an age limit? I mean, I would be happy to pay them $69 per month if they replaced my 20 year old water heater, 30 yo garage door opener, 8 yo dishwasher and 10 yo fridge and rewire my 100 yo house.

First things first, get foundation repair estimates from a few companies. Have the foundation fixed first thing since there is no use fixing other things until the house is on a stable and level foundation.

Is the roof good? Now that the foundation is done you want to take care of any roof repairs/replacements since that will keep your house dry.

Is the asbestos siding in good condition? As long as it isn't coming apart it is usually ok to leave it. Consult an asbestos company if you need to remove or repair. There are regulations pertaining to asbestos.

My next thought is windows. Does she need more modern windows? Those old, wooden ones can degrade over time and are not good insulators. Decide is you need to repair or replace these. 

Make sure all plumbing and wiring are in decent shape. Depending on when it was built, there could be failing pipes (galvanized pipes can rot), dangerous wiring etc. Have a professional inspect and make recommendations.

Mechanicals like water heater and furnace? Have a professional come and service furnace/cooler. Have the plumber check your water heater when he is looking at your pipes.

At this point you should have a level house that is weather tight with good mechanicals. Now you can take a look at the interior. Have someone with experience in wood floors look and see what is going on. The buckling could be water intrusion or it could be having the house out of square with the broken sill. Repair or replace.

The rest is up to you and your mom as to what cosmetic issues you want to look at. I hope this helps get you going in the right direction. It is likely you could hire a general contractor to manage all of these subs if that is what you want to do.

I would check as often as you can. Especially if you can pop up at unexpected times once in a while. I'd say the best thing you can do is hire a reputable contractor. Check the contractors board of your state to make sure they are fully licensed and insured. Interview and get references and view recent jobs. As others have said, don't pay for everything up front.

Maybe a call to a couple of realtors in your area? If nothing else, it could mean a faster flip than one without. Time is money so faster sale could be worth it. Also more appeal could mean a higher sale price due to bidding/competition between buyers.

Keep trees far away. There was mention of willows? Those are horrible since their roots will seek more water no matter how much they have.

The only thing you should plant on a mound is grass. Same with a sand filter. Even standard gravity systems you should only plant grass over the drain field. 

My parents have a pressurized mound. They are expensive to install. With tenants, I like to pump annually due to them not being as careful. I do have a clause in my lease that they are expected to treat the septic appropriately and include a booklet on it. If I pump and find stuff I shouldn't then I can include that in the damages.

Light foot traffic is fine so the grass at my parents' place gets played on. It is a vacation home though so it isn't daily, heavy foot traffic. Don't put the drain field or other parts of the system in a high traffic area including driveways (if it is just a pipe, I put them into a second protective enclosure like a culvert style pipe), under something you are going to build or livestock area.

It is best to not have a disposal in your kitchen when you are on a septic. Too much stuff going down can cause problems, especially if it is greasy. It can cause problems including clogging due to hair and other waste turning into a clump and clogging your pipe going into or out of your tank.

Around here, a sand filter system is running about 25k. Not sure what a mound costs but probably similar.

If you are hiring your own employees you should make sure you have appropriate work comp coverage and other business requirements in place. One benefit of using a licensed contractor is that they also pay taxes/insurance/employment related stuff for their employees. If you are the employer you will need to do this.

While paying a buddy under the table for sporadic work could be defended as him being a sole prop of his own business it is different when you are hiring employees.

You can usually look up all the info about this by checking websites for your state. You likely have something resembling a department of labor that will have info on how to become an employer. You should also check with your insurance broker/agent. They likely can explain work comp insurance. Your CPA can explain tax related requirements for payroll. State Construction contractors board will have info on become a contractor/subcontractor if you intend to sell the house or hire your crew out.

Tread carefully, construction is one of the most injury prone jobs. If one of your workers (including your friend) get injured on your jobsite you could be liable for their medical costs and disability. Your homeowners insurance won't cover this if it is discovered you were operating a business. This is one reason it is important to hired licensed businesses, in most states, part of licensing involves proving insurance coverage.

Also, when you hire contractors/subcontractors you will want to make sure they have general liability and work comp. If an uninsured worker gets hurt (even in your home working on your personal house) you can be sued for their injury. In the case of being a homeowner who hired the person for a non-business project your homeowners policy will cover it. 

Whether 20k is enough depends on your market. Low cost housing market it could get you into something. Live in it and rehab. Sell for profit. Benefit of this is that you can qualify for FHA lower down loan as your primary residence. Be aware that low down loans generally require the house be decent already so you are looking for something in good repair but dated and ugly.

I have seen full kitchens at salvage/Habitat stores. That likely would be the only way you could keep the budget that low, especially if you are paying for labor. Plan you kitchen and then start shopping. I would get moderate quality cabinets, cheap often doesn't hold up. Also check and see if you can get a discount. A friend of mine wasn't a GC when he got a nice discount from a kitchen and bath place because he identified himself as a flipper.

Make sure seller is paying any fines off as part of closing.

Make sure seller has terminated that renter's lease at his expense. In some states, you have to recognize any lease that is in place. 

Was it part of your investment plan to rent the basement? If it was key to your strategy then talk to your lawyer about getting out if remediation of the basement is not possible/too expensive.

Several years ago I had a section 8 tenant. I suggest you contact the housing case manager. They will give you all the info you need to determine what they allow their tenants to pay. At that time, I was allowed to have the tenant pay all of their utilities. I always pay garbage since I expect them to use it. My lease specifically spells out what is paid and the terms ie I don't pay for additional trash bags nor can tenant order additional cans, dumpster etc on the account. The lease was approved by housing so there was no confusion about who should pay what. My lease also requires that utilities remain connected to the property. It is a lease violation if they have them disconnected (it is ugly when there is no water to flush, yes, I had a tenant lose their power and water the last month. You could literally smell the feces up the street.)