I’ve been on vacation, so it’s been about a week since I posted…sorry about that!
The Leak House went under contract last week, and the buyers had their inspection over the weekend. As we hoped, the inspector didn’t find anything major, and the buyers only asked for several minor issues to be repaired. This includes some damaged weather-stripping on one of the exterior doors, a broken doorbell, a dirty air filter, a broken smoke alarm, a missing cap on the fireplace gas burner, and one or two other very minor issues.
The only potentially costly issue is that the water pressure in the house is too high; generally, this will either be a quick fix of dialing down the pressure or, if that doesn’t work, would indicate that we need a new pressure reducing valve (PRV). If we need a new PRV, it would likely run several hundred dollars. We actually had this exact same issue on the house right around the corner.
Anyway, the repairs will be completed in the next couple days, we’re hoping to have the appraisal in the next week or so, and once we clear that hurdle, we’re hopefully on to closing by the end of the month…
Hi J,
First let me say I have been following the blog for a few months and think you’re doing a really nice job. The site is very informative and interesting.
The question I have is in regards to the legal entity in which you operate your business. Do you have an LLC or partnership (etc.) set up? Or do you just do business as an individual and file schedule C on your tax return?
Thanks and again great job on the site!
If you do need a new pressure valve, be sure to get a couple of quotes. When I replaced mine a couple of years ago I was shocked at the range of prices. Assuming plumbers, like other tradespeople, are hurting from the construction slow-down, I’d bet you would get some very attractive quotes.
Hi JScott – great blog — I am in the Atlanta area – was wondering if you could refer me to an investor friendly title company.
Also, was wondering if you are a member of GAREIA — and if you would recommend joining.
Thanks!
Its sad, those valves are about $50 at Home Depot and really easy to install. I got sick of paying multiple hundreds to have them put on and just started doing it myself.
Hey Mike –
We run our business out of several LLCs that are taxed as S-Corporations. For us and our situation, this is the best structure, both from an asset protection and from a tax perspective. Taxed as an S-Corp, we file company taxes, but all income flows through to us as owners and onto our 1040s.
Michael, Eric,
You guys are absolutely right about the PRV costs. In many instances, I’ll get these sorts of plumbing tasks permitted (I’m always a bit more conservative with permits when it comes to plumbing work), which obviously will increase the cost. I like to be conservative, so when I say it will likely cost a few hundred dollars, I’m actually hoping it’s closer to $150-200…
Michael L –
For double-closes and more investor-specific transactions, check out John Maurer (http://atlantareia.com/biographies/john-maurer/). For retail transactions (selling to end-buyers, traditional closings) and any purchases of short-sales and REOs, I highly recommend Bo Wager at Harris Wagner Law (http://www.harriswagnerlaw.com/).
Bo is my go-to guy for most of my purchases and most of my sales to end-buyers. Tell him I sent you and I promise he’ll take care of you!