I have completed a number of rehabs over the years and got into some pretty deep fecal matter both figuratively and literally. However, now I am looking at a property that is beyond my scope of experience and I need some of advice.
I am looking at a multi unit property that could be a nice cash cow. The total carrying costs all in would be just under 1k per month. The property should conservatively bring in 2k in rent. I feel pretty safe calculating at $2500 and honestly, 3k per month is not outside the realm of possibility. I know for some these numbers may seem a little fanciful, but I assure you they are not. I have many years landlording, this side of the business I have no doubt on. Fun fact, at 3k per month rent, my down payment comes back to me in 1 year.
So how does one find a property that could double or triple the monthly expense in profit each month? Water! This property is vacant and winterized, but there is so much moisture in the basement, the water is actively condensing and dripping off the fluorescent light tubes. Not a single drip or two per tube, I am talking a drip forming about every inch along the 4 foot tube, on every one of the approx, 24 tubes in the basement. Serious moisture issues.
I have developed a pretty keen sense of smell for mold, and I have not noticed any, but obviously this is not a full proof test method. However, what is growing in the basement is what appears to be lichen on the floor joists.
So this is the problem that the likes of which I have never solved. There is a part of my brain shouting, "Run Forest Run!" There is an even larger part of my brain that loved the movie Mafia (1998) that is shouting, "Run Florist Run!"
However, the potential profit on this keeps bringing me back. It would also allow me to launch my other business in a B&M setting. This would drop the rent to $2500 initially while that business launched, but once it was up and running, that business could pay me rent as well, and it would greatly benefit from the street level presence.
So what do I do?
The fear holding me back has less to do with stopping the influx of water, I believe I can do that. It is more about the what ifs of mold and how to deal with it if it comes. My greatest fear is I get a mold infestation to the level that renders the property worthless or less than worthless- condemned.
My initial thoughts were to run 4 dehumidifiers in the basement 24/ hours day for a week or 2 to dry things out. The run 4 vaporizers filled with bleach for a week or 2 to kill anything that might have spawned down there, then dry it out again. But would this be enough?
Any guidance is appreciated, even if it is just, "Danger Will Robinson, Danger!"
I am looking at a multi unit property that could be a nice cash cow. The total carrying costs all in would be just under 1k per month. The property should conservatively bring in 2k in rent. I feel pretty safe calculating at $2500 and honestly, 3k per month is not outside the realm of possibility. I know for some these numbers may seem a little fanciful, but I assure you they are not. I have many years landlording, this side of the business I have no doubt on. Fun fact, at 3k per month rent, my down payment comes back to me in 1 year.
So how does one find a property that could double or triple the monthly expense in profit each month? Water! This property is vacant and winterized, but there is so much moisture in the basement, the water is actively condensing and dripping off the fluorescent light tubes. Not a single drip or two per tube, I am talking a drip forming about every inch along the 4 foot tube, on every one of the approx, 24 tubes in the basement. Serious moisture issues.
I have developed a pretty keen sense of smell for mold, and I have not noticed any, but obviously this is not a full proof test method. However, what is growing in the basement is what appears to be lichen on the floor joists.
So this is the problem that the likes of which I have never solved. There is a part of my brain shouting, "Run Forest Run!" There is an even larger part of my brain that loved the movie Mafia (1998) that is shouting, "Run Florist Run!"
However, the potential profit on this keeps bringing me back. It would also allow me to launch my other business in a B&M setting. This would drop the rent to $2500 initially while that business launched, but once it was up and running, that business could pay me rent as well, and it would greatly benefit from the street level presence.
So what do I do?
The fear holding me back has less to do with stopping the influx of water, I believe I can do that. It is more about the what ifs of mold and how to deal with it if it comes. My greatest fear is I get a mold infestation to the level that renders the property worthless or less than worthless- condemned.
My initial thoughts were to run 4 dehumidifiers in the basement 24/ hours day for a week or 2 to dry things out. The run 4 vaporizers filled with bleach for a week or 2 to kill anything that might have spawned down there, then dry it out again. But would this be enough?
Any guidance is appreciated, even if it is just, "Danger Will Robinson, Danger!"
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