All Forum Posts by: Paul Tyrell

We in the Northeast have a hard time making the numbers work compared to other regions due to costs of living. However, without hard remodel costs you are speculating.

Iv'e designed and inspected many septic systems. They due nothing.

Thank yu for both responses, but to inquire further my rehab costs included all expenses to include liabilty insurance premiums, utilities, heating costs during rehab, etc. Its not clear to me what I may be forgetting to make the correct decision between flipping and holding

The snow is starting to fly here in the Northeast and I’m trapped in doors for the next 24 hours.

With the free time I thought it a good chance to get reassurance that my current deal is a good one.

I bought a 2 family about 15 years for $120k, remodeled it slowly and rented it steadily for 10 years. It’s been a cash cow and I paid the property off a few years back. I get $2400 positive cash flow per month and could easily get more.
So, Ive been a landlord for a ong time and no the ins and outs.

I took out a home equity line of credit on it and purchased a bank owned 2 family for 180k a few months back. This needed a fair amount of work but is in a good town with lots of high end properties. My house is on the bad side of town because the surrounding houses are smaller don’t go for over a million. Remodel costs will be $90k (all out of pocket) when all said and done, more than I estimated but this goes with bank owned properties.

When finished it would sell for approximately $399k (smaller lot, bad side of town, no water view).

I just rented first unit for$1500/month and expect to get same for second unit next month. I was planning on refinancing and paying the equity line off and taking back the out of pocket remodel costs ($250k note). I do however need to wait the six months to refi. I will not have any management costs (I can handle all maintenance calls). Taxes and insurance will be $350/month.

Would you have made the same deal?

Mold, no heat or water would qualfy as not fit for human habitation.