All Forum Posts by: Stone G.

@Caleb Heimsoth if I remember correctly I never signed anything with the inspector. I think it’s pretty common for them to go onto the roofs here in south Texas.

@John Thedford there’s some parts where the felt underlayment is exposed as well as a section of the roof where there are no shingles at all. This should’ve been caught by him if he was ever on the roof

To make this as short as possible, I closed on a house about a month ago. When the inspection came back this is what was said about the roof

“The composition shingle roof appeared to be functioning as intended at the time of inspection. All roof surfaces are only visually inspected. For a more detailed analysis please contact a licensed roofing contractor.”

Fast forward to a week ago when the GC was doing work on the front porch and noticed there was wood rot, upon further investigation by checking the roof out he noticed there was a decent amount of damage that couldn’t be patched and call for a complete roof replacement. This was all visible if you were on the roof which makes me believe the inspector never got on the roof.

I contacted the inspector and he wants me to resend him the emails of me reaching out to him about the damage because as of this week he’s on a new policy. I’m not willing to do that because that’s potential insurance fraud?

What should be my next steps to get this inspector to cover the replacement of the roof? He already said he only has $1000 to come out of pocket but I know his insurance will likely cover it. Do I contact his insurance or get an attorney involved?

TIA

@Mark Byrge what do you do when a potential renter wants to look inside one of the storage units?

Jacob, I’m with the Marlins Organization. I’m about to close on a multi family here in Texas. One way is to get a parent to co sign if they are willing...

@Daniel I wouldn’t be paying more than $100 bucks a month for lawn maintenance, there’s only grass in the back of the property and the area isn’t that big. No plowing for this complex is in TX. All units pay for their own electricity, and there are no hallways. @Russ I have accounted for maintenance and capex. And I’m aware that it wouldn’t meet the 1% rule at first but I am pretty confident that as I improved the conditions of the units the 1% rule would be exceeded.

This is a 4-unit multifamily complex, the owner who lived in one of the units passed in October and the daughter is now selling it. From the pictures it looks like 3 of the units are in good shape, the owner’s unit just needs new flooring due to the dirty pink carpet it currently has now and maybe some paint. Their agent did not list pictures of the 4th unit so i have no clue how it looks in there. The numbers are:

Asking Price: 240,000

Property Tax: 5,500

Landlord Insurance: 3,500 (this is the one and only quote I’ve gotten so far still woking on more)

FHA Loan with 5% down, so to be conservative lets say i bought the house for 230,00

Down Payment: 11,500

Rents are well below market for the top two units (2bed/1.5BA)

Rent:$640

Market: 915

4th unit

Rent: 500

Market:675

Owner’s unit is 2B/2BA

i would rent out of one the rooms the first year of the FHA loan and live in the other so lets say rent for the one room would be $550

Id plan on slowly raising rents over the course of months due to the tenants being on month to month leases. Once the rent reaches market level I’d get them to sign year long leases or find new tenants willing to pay market price. 

Thoughts?

I have been approved for an FHA loan, my idea is to purchase a single family home with 3 bedrooms. To my understanding I can rent out the other 2 bedrooms as long as i'm using this residence as my primary residence. Has anybody had any experience doing this? if so do you have any advice for a rookie?

Thank you,

Stone 

Hello BP community, 

I have recently been running analysis on multifamily properties in the Houston area. Its easy to plug in property tax, HOA fees, Vacancy Rates, but when it comes to insurance theres a big question mark. What are the typical insurance rates for a multifamily property in the Houston area? I know it may vary if I live in for the first year compared to landlords insurance, so both rates would be appreciated!