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Mold growth may be found in basements, bathrooms, kitchens and any other wet areas in a house.  Many older homes that have been sitting for years uninhabited usually have mold growth somewhere in the home.  As a house flipper you specialize in finding old ugly houses and will come across mold occasionally.  Black mold can be seen growing up walls, behind walls on base boards and any other place where moisture has accumulated.  The actual mold spores however are invisible and float in the air.  Its when the spores land on a wet or damp area that makes them visible and causes the spores to grow.

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When framing your rehab project or house flip, you may think to yourself, ”I’ll just go to the lumber warehouse and pick out some 2 x 4’s”.  The new house flipper may not be aware that there is more than meets the untrained eye, when it comes to selecting the best lumber for your project.  Fortunately there are stamps on the lumber that tell you things like lumber grade, moisture content, and species.

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The Hopkins area project saga continues as the appraisal was done today.  They city assigned two “independent” appraisers to come out and appraise the property.  The letter says that they will base their offer off of the highest of the two appraisals.  I find it interesting that they send them both out on the same day at the same time.   This is supposed to be more “convenient” for the homeowner.  So now they are interested in convenience?  So let me translate this…We don’t really care that you are already rehabbing the property and bringing value to the community. We don’t care that it is on a preservation block which means that we are not taking the whole block for roads, utilities or any other public use.  We want your property so that we can rehab it and sell it for our own profit.  We are interested in acquiring your interest in your property and we can use eminent domain if we have to.  All at your convenience.  Gee thanks!

I hope that in the end I will be writing about how well thay handled this transaction.  Maybe they will do whats ethical and pay me for my INconvenience.  That’s what I call convenient!

Unless you are a professional painter acrylic latex paint is all the rage nowadays.  Any average Joe should choose this kind of paint simply for one reason… It cleans up with soap and water. Even professional painters opt for latex paint in many cases.  Since Latex is water based it does not require thinners and cleaners.  Even the rollers and brushes can be cleaned relatively easily as long as it is done immediately after use.  The main downside to latex is that it is subject to rust and mildew on metal surfaces or wet areas such as bathrooms.  It also is not known for its “glossyness”.

Oil based paints are known for the “glossyness” factor.  It is generally more appealing in bathrooms, kitchens, and on trims and moldings.  It is sometimes used with a fungicide in bathrooms or other places where mildew tends to form.   Also oil based paints are usually brushed on vs. rolled because of its consistency and other factors.  The downsides are somewhat larger than for latex paint.  Oil based paint typically requires the use of thinners and the chemicals pose danger when swallowed.  Some dangerous ingredients in oil based paints include lead (banned after 1978), barium and mercury.  See my article on lead paint removal for more information.  It is recommended that a professional is used when oil paint is desired.

Happy 4Th of July to my readers and fellow investors.  If you’re not an investor yet, get out there and buy your first property.  You won’t get another buyers market like this one again.  Enjoy the fireworks!

Today while I was in Home Depot returning a pressure washer, another gentlemen thought that he recognized me.   He asked if I was a member of the local REIA.  I replied that I attend meetings but that I had not attended an event at that particular group.  He was sure that he knew me.  He said he forgets names all the time but he never forgets a face.  I thought to myself why do so many people say that.  Are there really that many people that never forget a face?  Do they honestly believe this or is it just something they say because it sounds cool?  I know that I forget faces, and names for that matter , especially from childhood. 

I’ve decided that one of my goals is to work on remembering faces and names.  I always feel a little guilty when someone recognizes or remembers my name and I don’t remember theirs.  Ehow.com has an article that gives pointers on how to remember names and faces.  The article mentions saying the name several times in your head and of course paying attention when someone tells you their name.  It also mentions writing the name down while picturing the face but who has time for that.  Anyway most of these pointers seem like pretty good advice so I think I’ll try them out.  This is something that I always try to do when introduced during a business meeting and believe it or not it impresses people.  

Like lead based paint, many older homes have asbestos.  Asbestos was used as an insulator and mostly found wrapped around duct-work, plumbing lines and other pipes, floor tile, attics, roofing, etc.  If exposed and inhaled over a long period of time, it can severely damage human lungs. Asbestos can also cause other problems such as warts, plaques, and asbestosis.  Although it has been banned in many other countries, the Unites States still allows its use in new construction.

Removal 

Asbestos should be handled and removed by professionals.  It can be encapsulated so that the tiny fibers will not escape into the air.  It should not be vacuumed as the fibers are too small for the vacuum.   The EPA website is a good resource on what to do when you think you have exposed this material.  There you can find a local asbestos mitigation service.

Lead based paint  is commonly found in houses that were built prior to 1978.  Most areas of the country now require a lead certificate or approval before the home can be rented or sold after being remodeled.  Lead based paint is considered toxic and should always be removed by a professional.  It is typically disposed of at toxic waste sites or in some cases landfills.  

Lead paint should not be vacuumed, burned or sanded.  Any of these methods either release lead particles or lead smoke into the air which causes more problems.  Chipped lead based paint is commonly found in areas such as windows sills, floors, base boards and moldings where it can be eaten by young children.  If you believe there is lead paint in your house flip or remodel be sure to call a local lead mitigation service.  You can find them on the Environmental Protection Agency website.   Be sure to check out more house flipping tips by clicking on the House Flipping Tips category. 

As a house flipper, you should be constantly looking for ways to raise money.  Friends, family and associates can be a great avenue to get started.  However, you will want to be careful on the amount and the terms used for the money you receive.  Lets say your grandfather wants to help you get started in your house flipping business.  He offers to give you money for this duplex that you just got under contract.  This doesn’t mean that he can just write you a check for any amount and of you go.  Uncle Sam may want his cut. 

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I’m sure this is only the beginning of a painful process but I finally received a letter from the city that they would like to acquire my interest in the Hopkins area project.  I have no idea why it took so long but at least I now know for sure that they intend to acquire it.  During my research, I read that I was supposed to receive a certified letter from the city prior to an appraiser contacting me.   I assume an appraisal will be the next item on the agenda.  Just to add to the confusion it appears that the post office either lost the letter, delivered it to the wrong address or something else happened.  The letter was dated back in May but the first delivery notice that I received was today.  The funny thing is that someone was here but the doorbell never rang.  I don’t think that the mailman even bothered getting out of his truck.  Can anyone just do their job? 

I am not sure what’s going to happen from here but I’m hoping that they will compensate me fairly for all the money and effort that I have put into this property not to mention how poorly this situation was handled from the beginning.  In one hand I have a bank that gave me a time limit to complete the rehab.  In another hand the city telling me that I must complete the rehab according to the vacant property violation.  A third hand the corporation representing the city trying to keep me from rehabbing the property.  Meanwhile Im paying monthly a monthly mortgage,  contractors to pay, insurance to pay, etc, etc etc.  What a mess!!  This all could have been avoided before I acquired it but that’s a story for another post.  Is there a such thing as ethics in politics and government?  Maybe in the end they will fix this mess and I can move on.