The Inspection

Hi All, 

So yesterday was the inspection, I had big ideas for the place. Gutting the bathroom, laying engineered floors, removing walls to make the kitchen bigger, new appliances and all with a budge of under 8K....... well that's not realistic any more.....

It turns out that those walls in the kitchen are made out of concrete and have electrical/phone wiring which connect to the condo below me and above me. To remove 1 wall will cost me $1,400 and I had 3 walls I wanted to remove...... so that's not happening. The next bit of bad news was the electrical system. It hasn't been upgraded and is still the plug version, I'm told is not that safe for renters who don't know how to operate it, so that's another $1,500 to upgrade it. yay!!! Now that I'm not removing the walls, means that I'm keeping all 5 closets. All 5 closet doors are falling apart and need to be replaced so that's another $500. And finally, the person who owned it before me did a terrible job updating the place. The false wall build to make a bedroom is bowing so i need to fix that, and the electrical work they did is so bad its not working/not safe...... I did a pricing review yesterday based on the inspection report to give me an idea what I can do in my budget. It totaled $8,400 and this doesn't include new appliances, removing the walls, installing recess lights or gutting the bathroom......(see below)

Over all, in speaking with my real estate agent, we feel at this point in time, its still a great buy, The bathroom just needs a tub, the tile is in great condition. The appliances are old but will last another 3-5 years (enough time to save up for them) and removing the walls is something I personally would want if I lived there, renters wouldn't care that much. As far as the lighting he said "theirs something called a lamp" lol. which he is right. if i were to make all the changes it would cost an additional $6-8k and my rent would still be $1,200 per month. It just doesn't make sense to put in an additional $6-8k and still make the same rent.

At the end of the day, I'm still on track with an $8k remodel and a cash flow over over $4k a year, with that I will be able to upgrade the appliances with ease.

Next comes the appraisal but I'm not expecting any issues, and then the long wait until April 20th when I take possession.

Thanks for reading!

Phillip

Front Door Locks $40 Front Door Dead Blot $50 5 closet doors $500 5 - 2x4 $50 3 Drywall sheets $30 2 big closet door - Bedroom $150 2 light fixtures $80 Microwave $200 Kitchen Faucet $150 3 GFI Outlets $35 Wood Floor $3,000 Floor Trim $150 Door Stopper $3 Bedroom light fixtures $80 Tub + Instillation
$300 Floor Tile for Bathroom $180 Vanity $170 Vanity faucet $80 Vanity Mirror $90 Vanity light $108 Bathtub Faucets
$90 Electrical System/upgrading plugs $2,000 Smoke/carbon detector
$40 Paint - have tons left over from last job $60 Window Shades/Treatment $300 Other $500 $8,436