All Forum Posts by: Timothy Jennings

Hey Bret,

Thanks for the response, I appreciate the feedback. The first question I have is about the non-section 8 rent. Is there a reason why you prefer non-section 8? 2/3 tenants are section 8 on this property, so I'm curious.

Otherwise, $3260 gross rent would be $326,000 basis, 75% of which is $244,500. When I subtract the current price from the calculated value above I'm left with $27K.  I don't think would be enough to cover a roof, furnace and completely removing K&T from a 3600 sq. ft. property, so I think the seller will need to kick in for repairs. I guess that's my answer then.

In the numbers post above I'm showing that the monthly rent for the property is  $3260/month. We arrived at a contract price of $217,500, with a 2% seller contribution towards closing costs. After setting aside 10% for vacancy, 10% for maintenance, 3% cap-ex and 10% property management, we're looking at $150/door.

Thank you for all of the recommendations! I feel much more comfortable going through this process with quotes from contractors working with me instead of through the seller. 

Hey all,

Just made it through a home inspection on a property in Bristol with live knob and tube throughout and a damaged roof due to improper ventilation. I'm looking to get quotes for the repairs to have in hand for negotiating with the seller.

Any recommendations for a licensed roofer or electrician to provide a quote for the work?

Hello everyone,

Around 6-7 months ago my wife and I stumbled onto BP and decided to start learning as much as we could with the intent to head down the real estate investment path. It's taken us a little while to find a property with the right numbers, right area, etc, but we have an accepted offer! Very exciting stuff. The property is a fully rented triplex around ~3600 sq. ft.

Here's a look at the numbers.

So here I am on the other side of inspection asking for a little advice. There were a few items that were identified.

• Live knob and tube wiring throughout (Google says ~$15K+ problem)
  
  • Insurance concern (higher premium)
  • Fire risk (Attic has fiberglass insulation over K&T
  • Expensive to remove
• Warping of roof shingles due to lack of proper ventilation in attic (Google says ~$5-10K problem)
  • Need to replace / repair roof
  • Need to address ventilation issue
• 1 furnaces and 1 hot water heater are at the end of life (Google says under $5K problem)
  • Known prior to inspection, so I'm comfortable with this.

My intent is to work on getting quotes from professionals for addressing these issues and to go back to the seller in regards to the K&T and the roof. If they won't budge on the deal, I'd rather walk and consider this as a payment towards my RE education than sign up for such expensive repair items w/o any seller contribution.

With that said I'd love to figure out a reasonable way to say "Yes" to this property. Can anyone help me understand the following:

• Cost for addressing K&T and how necessary it is to address it
• Cost for roofing replacement (3 story, 3600 sq. ft. building. I'm estimated roof sq. ft should be around 1200)
• Tax credit possibilities for above repairs 
• Any personal experience / recommendations for negotiating?

Sorry for the long post, and any help is much appreciated.