The property is RM-1 multifamily. The house is in really bad shape, it has been vacant for a long time and has no kitchen or anything - also part of it has no floor. The lot is huge 5000 sq feet but 2300 has been built. With lots of imagination, it can be turned into a 3 unit building I think:
1 studio apt
2 - 2 bedrooms
I’m just wondering what my first steps should be. I paid cash and have cash remaining to do the work. I hope I won’t need to finance any of my project. I’ve been saving up for a long time! First I want to get insurance, although I’m not sure if any companies would insure it in its present state. Also I know I need a rental license to rent it out. I don’t want to hire a general contractor for everything bc it’s too expensive. I would like to hire out each subcontracter by myself ( one company for flooring, one for electrical, one for plumbing, one to do kitchen etc) i guess my first step is to make sure the roof is okay. I can do the easy stuff like painting. Plus I figure it’ll be part of my education because I plan to make a business out of this.... after saving more money :)
I’m really excited. What do you think of my first steps?
@Alyse Oz companies totally insure distressed properties! I can put you in touch with some insurance agencies that will definitely underwrite rehabs. I work exclusively with investors who need homeowners insurance whenever they use a lender on an investment.
Your first step is to get a qualified contractor!! Make sure you vet them thoroughly. You want to get the U&O before anything, then start pulling your permits. DO NOT DO ANYTHING WITHOUT THE PROPERTY PERMIT. Once all that is taken care of, the roof is definitely the next step because that will take care of your investment on the inside and prevent mold from furthering (hopefully there is none to begin with). Typically investors go with demo, main mechanics (plumbing, electric, HVAC) then the cosmetic stuff (drywall, floors, kitchen, etc).
That's the basics. Good Luck!
Thanks you so much for your feedback!
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