All Forum Posts by: Rob Myers

If the deal is still a good deal for you, how about proposing a credit to offset the cost of installation?  If I were selling, I would rather give a $XXX credit at close than go through the hassle and debate on whether or not it's necessary.

You can always say no to the buyer if your deal is tight.

It sounds like you are emotionally attached to the deal which never works out well in the end.  Appraisal really doesn't make a difference here.  Your seller wants more money than you are willing to pay.  Leave the offer of what you are willing to pay with a phone number and keep shopping.  If they don't get any action in a few months they may change their mind.  Good luck!

Will having this utility closer to your property improve your property value for future development?  

If the easement runs along a property line, I would consider it however if it clear cuts across the middle of your property and could impact future development I would pass.

Capex and Maintenance look a little high based on your description of the property. I put aside 15% total on my SF rentals. Insurance looks close. I budget a fixed amount for PM at $70-$80/month plus a portion of 1st month's rent since that's how my PM prices their service. Vacancy looks good.

I wouldn't go through the hassle of upgrading the 1/2 bath to a full bath.  It might get you an extra $100/mo in rent, but how long will it take to pay that back?

Good luck!

How much work is left on the contract and what is your potential exposure?  From some of the posts, it sounds as if you are discussing flooring which to me would mean you are near the finish line.  I'm not suggesting backing down if you were seriously wronged by the GC, but consider what you need to fund to get through the issue and complete the work versus stopping the work, hiring a new GC and fighting this in court.  What is your lost opportunity cost because this will set you back at least a month? 

You will be subject to meet all the requirements of the current building code if you try to convert a SFH to a duplex. If the home is older, you may have issues with items such as the stairs not meeting code, converting and upgrading electrical systems, minimum energy efficiency standards, etc. It's something to keep in mind as you make that decision.

It doesn't make sense in my target area. I can purchase an equivalent duplex for less than the cost of a SFH plus renovations. Your market may be entirely different. Good luck!

I own a couple duplexes in West Allis and compared my numbers against yours. The $750/mo income for a 2 bedroom seems in line depending on location. Does it have a garage? If not, you may have to tweak your numbers a bit. My water bills average about $100/mo which I don't pass through to my tenants. My insurance is around $600/year. As others said, your maintenance seems high. Capex will depend on the condition of your roof and windows.

I have a mix of high efficiency and standard 80% furnaces in my duplexes.  I agree with what @Brendan R. said regarding the chimney.  Chimney repairs could be more expensive than upgrading the furnace, so if in poor shape you may want to abandon the chimney and go high efficiency.  Keep in mind your gas water heater needs a place to vent as well, so you may need to keep the chimney active.

One thing to consider is a newer used furnace.  Our local Habitat for Humanity Restore often has newer furnaces that have been removed from properties being razed.  It's a bit of a gamble, but can save you money if you find the right deal.

Good luck!

I would avoid installation of the window insulating kits.  It's a nice gesture and I agree that you want to take care of existing tenants.  Once you start showing up to do the little extra things, tenants will take advantage of your good nature and continue to call for every little thing that they could do themselves.

I see no issue in providing the window insulator kits, but try to find the balance.

Remember that the property will always be labeled as a modular home which could impact resale value.  There are decent modular homes out on the market, but it will always lag behind a traditional stick built home.  Also, I believe there are more stringent lending requirements from Fannie Mac/Freddie Mac but don't quote me on that one.