Re: Ready, Fire, Aim ! - Posted by Tony Colella
Posted by Tony Colella on June 13, 2006 at 16:50:55:
65% of tax value may or may not tell us that much as we invest based upon cashflow - After the cost of fix up, which it sounds like you have a good deal of.
Landlord friendly repairs are more important to me than tennant friendly. I let tenants buy shower curtains or I put a cheap $4 one from wal-mart if necessary. I don’t clean shower curtains and neither do tenants in many cases. They get tossed out before the next tenant arrives.
As for the addition. I have bought many properties with harry homeowner improvements. I cannot speak for you or the inspectors but as far as I am concerned I am buying as is with a significant discount. I make certain that the improvement is safe and landlord friendly. It needs to be appealing of course or the cost of removal built in the purchase price and terms.
Mold and mildue will build up in houses left vacant for an extended period of time. Outdoor type bleach and water mixture does wonders. I then determine if a leak is present and make any necessary repairs.
If the tub is intact then I would bleach and caulk atleast for the first tenant or two and then reavaluate. Kitchens and baths are the most costly and time consuming remodels. Get some cash flow first if you can.
The same may hold true for waiting on the “permanent foundation.” Most banks will require but not all do. We have done refi’s without the block foundation.
I am a believer in not spending money that I don’t have to. If I can build up some cash flow first I would do that.