Project Blog - 11 unit apartment Rehab - SE Houston Texas
Howdy BP,
I will be giving updates on this project periodically. Feel free to ask questions to drive what I write:
Here is where is started, and here is the November update:
Thank for the idea Jimmy. Is there a better place to do this than the market place? Please let me know if there is BP vets, and I will start a forum there and link to it here.
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Here is an update for November.
Taking care of our investors
We have used Wells Fargo to set up automatic payments to take care of our investors. We made sure that they are paid first by sending a check on the 20th of each month. Along with that, we are sending them a monthly update to keep a feel for what is going on.
Property Management Update
For a discount in rent, we have our long term tenants as on site help. They have come in handy to open doors for contractors when needed. They also collected rent on time from the other two tenants.
Rehab Update
As for the rehab work within the apartments, we have a GC giving us good prices. He is currently working through the cosmetic work that can be done without pulling a permit.
Foundation and Roof
So far we have cleaned up all the units and hauled the trash to the local dumpster. While that work was being done, we continued to look for the best price to fix the foundation and patch the roof, in that order to avoid any rework. The foundation is complete and the roof work has 2 of the 3 phases complete. That work is guaranteed if any future problems come up.
Wi-Fi
We added Wi-Fi to the apartments for three reasons:
1.Our tenant can use it now and it will help with future marketing
2.Andy and I can now use facetime on our iphones. This gets Andy's eyes on the property even when only I am there. This came in handy as I could show my partner the completed work while he was at home 1 hours away.
3.This month we will install a security system so that we can have eyes on property even when we are not there.
Exit Security
Andy and I met with a representative from a credit union. He spoke optimistically about re-financing the property once the rehab is complete. The man that we met with owns 5 rental houses and understands the real estate world along with the financing world.
In addition to this contact, we are also pursuing other credit unions for a similar loan programs to evaluate.
Building Permit Update
We have submitted our permit needed to do our plumbing and electrical work along with the final checks before closing up the walls. We have our permit in for review and are prepared for either outcome. 1. We get the permit and we have our GC's estimates to do the work or 2. We need more detailed drawings for which we have a guy who has worked with the city before ready to go.
Project Management
Right now we are using a share reminders list for iPhone, Dropbox to share all files, and Excel to track expenses and action items. Details below.
One of the challenges so far between partners is keeping track of day to day task. We tried using Google docs, but found that it works best with a solid internet connection and not on the road with a smart phone. We tried Evernote, but found that it cost a fee to have the same sharing features of a google doc.
Right now we have a share reminders list for iPhone, which is the landing board for things that come up in conversation. We need x,y and z, so when the conversation is over when I am out and about, I add x,y and z to the reminders list. Then we have a word doc in a shared DropBox folder that has the big picture of the project plan and has the details written below in a bulleted format. That way I can regroup and look at the document to see what is most pressing. My partner will Bold items that need to be done now.
A problem with that is, 'What do you do with the completed items?'. At first I would just write complete next to the item but it was getting too cluttered. So, I am moving the list to excel that way I can sort it by due date, completion date, category etc. This excel file is also in DropBox.
Along with the action items, the excel file has a spreadsheet that has categories of work on one side and weeks of the project on the other (could do months too). Each week I track the expenses per category.
Questions?
All things considered, things are going well. I am learning a lot and working well with business partner. Happy to answer more questions if you have them