All Forum Posts by: Walter Bowser

I dont have anyone that can do 10% but I do know a lender that can do 15% down.

Foundation issues, especially if it is on a slab foundation is a deal breaker for me everytime. The resell value will never be the same on it, most buyers do not want a home with foundation issues. If you know you are going to keep the house for 30+ years as a rental might not be an issue

Hi Emily, welcome we are excited you are on the platform. I am a property manager here in Oklahoma. We focus on SFRs that are long term rentals. 

We use a key box with tags and track them with a corresponding number.
 

It is always tough, I was talked into renting to my family and it did not go well. I believe its because you can also see what they are doing on a day to day basis because of Social Media. I will never do this again, it gets far worse before it gets better. If I could go back I would ripped the band-aid off sooner, would have been less headache.

Typically good deals move too quick for a full inspection. However, I typically will not buy a property if I can not at least walk it first. Too many times pictures of the property do not tell the entire story - from foundation issues or rat infestation inside the walls, if a wholesaler will not at least let you walk it and wants to make the EM hard, those are red flags you can not ignore. I typically will pass on those deals. 

Unforeseen issues always arise so @Scott E. is correct, always put a buffer of at least 20% on each deal for those problems that will pop up or more importantly, something that will come up on the buyers inspection that you will need to fix after you have your flip on the market.

I have found some of the best contractors from Facebook groups in the local market for example "Real Estate Investors of Oklahoma City". When I was first starting out, I would walk the property by myself and try to come up with a highest budget possible and make sure I was taking into consideration the high ticket items like Roof, foundation, HVAC, HWT, etc. 

Then during a due diligence period I would walk with a few contractors letting them know I had the property under contract and see if their pricing aligned with my estimate. I would recommend walking with at least 3 contractors at first, make sure to do them separately and see whose numbers align with your thoughts. Remember, cheapest is not always best.  

Communication is what I have found to be the most important part of property management. Having all key steak-holders on the same page is a must. I would start looking around for a different PM firm, and remember you pay for what you get.
 

If it is a lot, I would go to HomeDepot and rent a drum sander and get to work. You will need to re-stain the floor and then coat it. It will still probably be less than LVP

Quote from @Jay Hinrichs:

Quote from @Walter Bowser:

Turnkey is great for a first time investor. I typically recommend a new construction for a true turnkey property as the builder typically has some sort of warranty. This means for larger ticket items they will cover some maintenance or repairs on them. 

If its home that went through a remodel, typically there is not any sort of warranty and you will still experience some work orders come in.

Either way, great option for some investors and currently there are still some deals out there that you can walk into equity with, which is typically why you'd want a non-turnkey property.

builder warranties are for 1 year typically..  but you know the warranty is only as strong as the builder. 

Here in Oklahoma, its either 1 or 2 years, yes. The two builders I suggest, are typically pretty great on their warranty. Ultimately, I agree with you its as strong as the builder. However, purchasing a "turnkey" flip, typically I have had more maintenance issue from items being flipped cheaply or incorrectly, with no warranty at all. Most maintenance won't pop up in the inspection report, its more apt to pop up after having someone live in the property for the first month.