All Forum Posts by: Tom Fidrych

Quote from @Anil Villamkandathil:

I guess I got my messaging wrong. When I Say cheap, I meant a competitive Investor level pricing for a level 1 granite. The flips in my market have them. Well, now things have changed and I see all kinds of property listed. I don't mean to cut corner, however I am trying work within the market parameters that I am bond to. As of now my expenditures versus projected income is little scary. The work I put in must be considered as experience.  So I am hunting ways to save every penny I can.@Mordy Chaimovitz@Mordy Chaimovitz

@Mordy Chaimovitz, I am not sure if I am going overboard, but its my intension to deliver a descent product, However the market has nosedived now and my purchase price is no good for the current challenging ARV. Most of the flips in the area have a Solid stone countertops, so I guess the market demands it. But as noted above things are changing.

@Tom Fidrych

Thanks, Can you please guide me  the search terms, Do business show up on google searches. I do not live in the area of my flip, I out by about 1.30 hrs and I work full time. Very hard to drive around. 

If I don't sell it at my lowest bench marked price, My plan B is to rent the property but my concerns are I invested a lot of money into remodeling the property as a flip and I fear when it comes time to sell, I have to redo this exercise again. Renting for me right now is not profitable. I am in line of losing couple of 100 bucks a month.  I am also considering medium term furnished renting at https://www.furnishedfinder.co.. , this would mean, me investing in the furnitures. My contractor thinks this is a good Idea. To be frank I do not understand all the variables here, particularly the vacancies and security of my property in a multitenant setup.

Thanks

Anil

Thanks

Anil

 What town is the remodel located? I'll check for suppliers thereafter. 

Give Home Depot a shot.
Alternatively, see if you can find a pre-bullnosed granite slab supplier within driving distance. I'm close to a west coast port and there are 100's of them within 70 miles. They tend to be run by Chinese families and will also carry imported cabinets. They may be able to provide an installer that will charge by the hour and most of them can do it in half a day.

Quote from @Bruce Woodruff:

I would keep the rent out as income, not a part of the original deal (to me)

It popped out to me that you have only $50k for rehab costs? In the Bay Area? You sure about those numbers? Because that is where most deals go south real fast when doing Flips or Brrrs....

Yeah, $330K is a really cheap home for the SF bay area. I'm in the Santa Cruz mountains and homes in that price range typically need over $100K unless your doing all the work yourself and your not dealing with geotechnical issues. What kind of deal is this? Your paying the buyer and seller agent fee? Typically, the seller pays those costs.

I certainly wouldn't be paying the tenant to do these repairs. Seems he's dreaming up work for himself.
Regarding the carpet and gutter , just say the monthly rental fee takes the condition of these items. If you would like a new carpet and gutter, the rent will need to go up. Cleaning walls is a tenant responsibility.
You are required to meet the conditions of habitability. These are the items should be dealt with. Function water systems, electrical, stairs, etc.

I don't think a cash offer by itself entitles you to a discount. Why would I accept a $400k all cash offer over $425K? Perhaps if time is of the essence or I thought the bank financed buyer might not qualify. In the end I'll be getting a check from the title company.

If, as Nathan Grabau pointed out, the property is not able to be financed. Often you will see listing's that have a "remodel" in progress and the owner may have run out of money. been red-tagged, or had other situation that forces them to sell. Since this property is torn apart and not bank lendable, the pool of buyers has shrunk considerably. In such case, you may be able to pick it up at a discount that far exceeds the cost of finishing the remodel.

With the increase in interest rates and decrease in home values, such remodel-in-progress opportunities may become more common.

Cancel the appraisal ASAP.  The thing won't appraise or finance if one of the units is gutted so I'm surprised your agent didn't point that out. I suspect the sellers are realizing the remodel is going to take more time and money then anticipated. Perhaps renegotiate the contract for an as is purchase price.

A strategy I used for my first home purchase was to park a travel trailer in a far corner to live in while I rented the house out. The property was sloped so it was easy to run the sewer, water, and electrical to the trailer. I invested the rental proceeds into property improvements and eventually refinanced to purchase another property.

As you know, it's really tough to purchase your first home in the Bay area unless you're making 6 figures. 

Are you planning on financing the home or paying all cash? Doubtful anyone will lend on it is that condition. 

Likely these regulations are primarily in blue states. It's understandable why so many CA residents are heading out of state. 

Earlier in the year someone posted an article stating that the government is going to take over the rental market. I take that to mean an increasingly regulated environment.

Anyone have any regulations to share that were enacted in their local?

In various areas I'm seeing rental % increase caps, 90 day notice for increases, banning or reducing application fees, reducing deposits to 1 month rent.  Potentially disallowing the use of credit scores and criminal record. If property managers keep getting backed into a corner, at some point is there a constitutional limit as to how far you can be regulated?