All Forum Posts by: Tom Fidrych

Instead of boarding some of them up, you could silicon in some plexiglass panels so that natural light can come through. Just explain the temporary fix to potential tenants and even show them the new window invoice. You will more then pay for the plexiglass with potential lost rent.

0 Votes

Saint Louis, Missouri

Quote from @Sarah Pelton:

Is it possible there was a type and it should have read $240,000? I would inquire about that and then ask for a second opinion. When I did that once, they modified the original appraisal after I provided plenty of proof that the appraisal was way off base.

A typo is possible.
I'd also look at what is being marketed versus what the county recognizes. For example, did a previous owner double the square feet without permits? Perhaps the appraiser only used the assessors SF.

0 Votes

Grand Rapids, Michigan

Quote from @Dharti Pancholi:

Hi @Jonathan Pflueger Could you please guide me the GCs that quoted you 150 or lower. I am building a new construction and with current house prices, it only make sense if I build the house for around 150$/sqft. I may consider up to 200$/sq ft if quality and comfort is better. Thanks a lot for your help

This conversation started in 2018 and prices have skyrocketed since. A contractor I know in the bay area said $400/sf and up not including site development and permits.

2 Votes

Don't use a realtor but you will want to run it through a title company.

0 Votes

Los Angeles County, California

It seems like there are a lot of people out there, like yourself, that are sitting on piles of cash to deploy and that is why investment properties are continuing to command a premium price-hence low inventory. During 2008 there was a nation wide liquidity crisis. Stocks tanked, property values plummeted, HELOC's were frozen, and investment property loan terms were onerous. For example, I tried to buy a duplex in 2009. The lender wanted 30% down, and 6 months reserves on the subject property as well as 6 months reserves on my other 5 properties. So I needed $100,000 in the bank to buy a $140,000 duplex! The higher rates will certainly deter some investors but it seems Multi-Billion dollar private capital firms will be there to create a floor.

0 Votes

Kansas City, Missouri

Quote from @Robert Sprague:

@Jared Hottle

Hello I'm going to use my HELOC for down payment then mortgage the remainder. My concern is when analyzing the deal the interest rates on HELOC will go up so how do I get an accurate analysis on the deal.

You can only project the interest rate that the HELOC may have. No one knows for certain where interest rates will cap out. If inflation suddenly cools and employment rates are at non-inflationary number, it's possible rates will not continue to go up. Therefore, your HELOC rate will be what it is now. However, if inflation picks up, rates may continue rising. Warren Buffet states that any company that has a staff economist has 1 employee too many. Why? Because it's really tough to make accurate economic projections.

0 Votes

Quote from @Malcomb Stapel:

@Lucia Lilac I'm assuming this is a rental property you are buying? Short or long term?

(I just do it on presidential election years)

LOL. Good point.

1 Vote

Upstate New York, New York

Septic isn't a deal killer but you will want to have it pumped and inspected. They should examine the integrity of the tank and look for signs of high water. Is there room for an expansion area should the leach field fail? Is the leach field in heavy clay soil and need frequent replacement? If any of these factors come in unfavorable, you can negotiate with the seller.

The regulations regarding septic systems close to waterways are becoming onerous. I live in California, king of regulation at any cost, and now many new or replacement systems require an advanced treatment system and the quotes I'm hearing are in the $90,000-$120,000 for a single family home. Next summer they are even stepping up the requirements for these systems reducing the allowable distance between groundwater and the leach line depth. Argg.

1 Vote

Upstate New York, New York

Quote from @Kori Kelly:

Quote from @JD Martin:

I'd party like it was 1999:

@Dave Foster

The interest rate is at 3.5 and I guess I was thinking if I paid it off it would get me closer to my goal of replacing my job with cash flow from rentals but once I looked at the numbers last night it will only increase my cash flow by 200 if I pay off the mortgage. So I guess I will pay off some debt and find another rental.

If your trying to replace your job with rental cash flow, why are you selling the place?
What do you believe is a sufficient cash flow per month to replace the job?
You might be best to do a 1031 exchange to eliminate the tax hit from the sale. Remember, you can not take the proceeds from the sale yourself, an intermediary must take possession.
On issue with rental properties is some lumpy higher cost repairs come up-such as a roof replacement. One way to deal with this is to put aside a certain amount per month to pay for higher capex items.

0 Votes

Raleigh, North Carolina

All Forum Posts by: Tom Fidrych

Tom Fidrych has started 13 posts and replied 232 times.

Post: First rental property

Post: Advice on what to do with rental while waiting for window replace

Post: STR appraised $120,000 less than offer

Post: Price Per SQ FT for New Construction in the SF Bay Area

Post: Buying a house on contract. No idea what I'm doing.

Post: Who and why are people selling rentals right now?

Post: Analyzing a property using a HELOC

Post: Help Septic Tank!…..

Post: Help Septic Tank!…..

Post: What would you do with 50k from a rental property sale?