All Forum Posts by: Xingcai Wu

Quote from @Joshua Messinger:

Hey @Xingcai Wu!

This one definitely seems appealing from a bird's eye perspective and it seems like you can make the numbers work when you really crunch everything together... But, don't you agree that now is a time when you should be ultra-conservative with these estimates? It seems like there are just so many ways this could go wrong since you are finding one issue after another and continuously have to go back to the seller to ask for more concessions. 

This deal might work, but only for the right price! Don't get emotionally attached to it and stick to your gut with your estimates/projections! If it doesn't work it doesn't work, if it does, it does.  

I hope this helps! Please don't hesitate to reach out if you ever need anything! 

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Josh

 Thank you so much Josh for your reply. I 100% agree with what your saying. I'm going to ask for a large concessions with proof of rehab estimates. I'm ok with walking away if the seller says no.

Quote from @Philip Murphy:

Do you have a contractor you trust? At this point I would walk the property with my contractor and get an idea of how much you are looking at in repairs. Sometimes it is hard to tell how much work/ money is needed to fix a foundation, so if you do renegotiate you want some wiggle room in your repair estimates. 

Whether you walk or renegotiate depends on your willingness to undertake a big project, and if your numbers still work when construction goes over budget and takes longer than you estimated.

 Thank you Philip. That's a great idea. I used the BP rehab calculator, it estimated about $47,323; and the roof and siding range about $35,000-45,000. I'm not sure if I want to do that much rehab on my first property.

Hi BP,

My name is Wu. New to BP and signed up for Pro membership couple months ago when I decide to buy my first property to house hack.

I have gotten a four unit property built in 1902 under contract. It is two-duplexes on the same lot with a four-car garage. My plan is to house hack in one of the duplexes and rent out the rest. The asking price is $349,000 with property tax around $5400/yr. Property insurance about $250/month. I’m going with 20% down conventional with rate locked at 6.625%. 

 Currently one duplex is rented to section 8 tenants. The rents on the first duplex is $1200 and $1300, could be higher when leases end. The second duplex is currently vacant, the rents could be $1200/unit when fixed up. Based on what I saw on my walk through, the vacant duplex needs a lot of work, such as new roof, windows and siding. I negotiated price down to $319,000. 

So, after the inspection last weekend, we  found there are more water damages to both duplexes because of missing gutters and holes on roof; also, foundation problems and old knob and tube wiring. And garage roof needs replaced as well.

I will definitely go back on the negotiation table and try to get seller credit. My question is should I walk away
from this deal because it has too much problems and too much money to fix it up? 

Any opinion helps! Thank you so much!

Wu

Quote from @Aaron Mikottis:

Reviving an old thread here...

The City of Joliet just passed an ordinance bringing SFRs into the inspection program. I work for a management company called Future Vision that specializes in the Joliet market if anyone needs help or wants to chat about what to expect.

Yes, Aaron. This is Wu. I looking to purchase a house hack in the Joliet area. It’s a small Multifamily. Right now, it is rented to section 8 tenants. What should I expect when I take the ownership of the property? Thank you so much for your time!!!

Wu

Quote from @Luis Vaca:

Yes I will definitely get an inspection on any property I want to invest in. 

I am not that familiar with what to look for on structural issues, so on my initial walkthrough it would be nice if I know what to look for. I suppose I could also stick to the inspector whenever he does the inspection and ask questions? 

Hi, Luis. This is Wu. I’m currently looking at buy a smaller multi-family property built in the 1902. Can you tell me what your experience was in purchasing a 100 year old property?

I’m in the process of buying an old house built in 1902 for my primary residence. Things I think we should look for are asbestos, lead base paint, floor settling and sinking, shingles popping up, closet space/fire place, galvanized plumbing.

Thank you very much @Joshua R. for hosting this networking event. I just signed up for BiggerPockets Pro yesterday and looking forward to network!