All Forum Posts by: Tchaka Owen

Does that mean that the renters in those 2 units are unable to shower? I can't imagine anyone ever renting a place with merely a half bath - unless there's a communal shower.

In regards to your original question, the kitchen is fine. The only thing I'd change (and this is a personal thing) is the fridge: I can't stand smaller fridges! That aside, the kitchen looks better than I thought it would. 

@Sylvia B., she manages a hospital in the Seattle area, I didn’t ask every detail...I would assume she knew what she was talking about.

@David Allbritton - right off the bat, I don't like this deal. You're going to spend $50k to gain $30k? That's a risk/reward I wouldn't do. And if this is a DIY, that's even worse. Let's say that $50k is a legitimate cost....if the ARV = $210k, then I will not pay more than $110k for it. At a minimum, reward must meet amount risked. If a non-DIY will be more than $50k, time to redo the numbers.

Additionally, your closing costs will likely be higher than $2k - even if a cash purchase. Vacancy will likely be 8% and you did not include a management fee. Lastly, I agree with @Alex Kreeger that you should be able to find a lower rate. Good luck!

That alone is reason to quarantine. My former teammate was asymptomatic and only tested because her employer required her to do so. They found out she'd infected 3 coworkers without even knowing it. I'm calling "Game Over" without even hitting on any other points. There's nothing else to discuss.

@Armand Soto - unless he was driving a house while under the influence, not sure how that affects being a tenant. That would be like the state denying you a drivers license because you didn't pay your rent.

@Dimitri Paspalaris - depends on what type of deal you're buying. Ie, if this is a rundown place and you're paying pennies on the dollar, then it's understood you'll be taking care of all repairs/renovations. If this is a home that's in decent shape (let's assume it could use a little love, but it's good) and there wasn't any disclosure that the AC and water heater are aged, you should negotiate. The AC is easier because depending on where in the state (FL is large), it might only have an expected lifespan of 10 years, therefore 15 is a blessing. If it still works fine, you likely won't get replacement, however you should be able to negotiate a credit.....maybe $1000-1500. At the very least a professional cleaning. If you have to replace it, a 3-ton will cost around $3000. 
Water heaters are harder because they can last a really long time. Also, if it goes, it's not that expensive to replace. I replaced one some years back and the cost was $600. Note: several months later I replaced one in VA with an identical one and it cost $1000...the difference was labor costs. In general, repair/rehab costs are lower in FL.

Good luck! 

@Taha Tekreeti - Books is where I'm a behind the curve, but guests on podcasts do mention their top 5 and that helps you. Naturally you want to read some of the basics: Rich Dad Poor Dad and Think and Grow Rich. I like Richest Man in Babylon; my next read is Lindahl's 'Emerging Real Estate Markets'. His 'Multi-Family Millions' is supposed to be good too. Remember that many books aren't directly real estate, rather they work on your mindset.

@Mateen Qureshi and @Taha Tekreeti - this is the time to study; take advantage of the lull to educate yourself on as much as you can. After years of successes and failures, I spent the majority of Fall 2018 and early 2019 reading as much as I could on BP and listening to podcasts. I drove to S. Florida several times each month (just under 3 hours each way) and usually had podcasts on. It helped me refocus and now I'm back in the game. Take in as much as you can. You don't even have to select an area yet, the knowledge will help guide you. Learn, learn, learn! Good luck.

Neither. Get a HELOC on your home now and use if IF and WHEN an opportunity presents itself.

@Ryan Ross - looks pretty good. Two comments:

1. Your closing costs will be closer to $10,000.

2. 3.750% seems very low for a mortgage on a non owner-occupied property. Are you sure you can get that?