Hi all,
After months of lurking, reading, and researching, my fiancée and I finally have an accepted offer on a triplex. We are going FHA with a 203k loan. The property has had a recent renovation on two of the units, but the third is a mess. Also, the roof and other areas need help.
To that end, does anyone have a good general contractor they can recommend?
I was thinking of making an appointment with a few contractors for the same time so we can get competing bids on what needs to be done. Does that sound like a good plan; or is there a better way to line up a reputable contractor with a competitive offer?
Thanks,
Ryan
San Diego, CA · Member since 2014 · 5 posts · 4 votes
10y
Ryan, I have a question about the FHA/203k side of the deal. I also live in San Diego and make a modest income (nurse).
I've always been so intimidated by the housing prices in SD, but I know me and my S.O. want to get into real estate here, preferably a live-in flip situation on a duplex or 3-plex.
You don't have to give me the exact numbers if you aren't comfortable, but I am curious as to how much cash you had to have on-hand for the deal you got, how much income you had, and what the process was like to get the 203k loan.
Thanks and good luck. I hope you find a good contractor in the area, and if you do I hope you don't keep their name a secret :-p.
Architect · San Diego, CA · Member since 2013 · 244 posts · 101 votes
10y
Congrats! I would recommend one after the other instead of all at the same time. It will be easier for you to get a sense of who they are and what they are about. The job will go a lot smoother if you get along. I'm not a 203K expert but isn't there a list of contractors that are approved? If so I would start your search there.
So it turns out that with a streamline 203k I don't have to have a special contractor, but can use any general contractor.
I've been recommended Larry Canepa from San Diego Pride Construction, Inc. Does anyone have any experience with him?
San Diego, CA · Member since 2014 · 5 posts · 4 votes
10y
Ryan, I have a question about the FHA/203k side of the deal. I also live in San Diego and make a modest income (nurse).
I've always been so intimidated by the housing prices in SD, but I know me and my S.O. want to get into real estate here, preferably a live-in flip situation on a duplex or 3-plex.
You don't have to give me the exact numbers if you aren't comfortable, but I am curious as to how much cash you had to have on-hand for the deal you got, how much income you had, and what the process was like to get the 203k loan.
Thanks and good luck. I hope you find a good contractor in the area, and if you do I hope you don't keep their name a secret :-p.
Involved In Real Estate · San Diego, CA · Member since 2010 · 36 posts · 4 votes
10y
@Ryan R. Congrats on getting your offer accepted. The 203k loan is a great way to get into a property and have the money to do your improvements. That being said, the intricacies of the loan and the process are something I'm sure many people are interested in hearing about as you can already see by@Daniel Diazquestions.
If you don't mind, please keep this thread updated with your experience as you move along through the loan process. If you are able to do so this thread can be like a case study which many will find helpful.
As for the contractor situation I would also recommend doing one at a time. Just let them know individually that you will be getting multiple bids to compare.
I wish you well in the process and look forward to any updates you might be able to provide.
Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
10y
I trust Broaddus Construction. Not the fastest (by far), maybe not the cheapest (but I think he is cheaper than most). He does top rate tiling; good enough that he has done tile in my own home twice (bath/showers) in addition to what he has done for me in the rentals. My master bedroom bathroom shower is one of the best tile jobs I have ever seen (river rock pan, river rock accent, tiled walls with tile inset). He has done many aspects of a rehab and he tells me when it is going to be cheaper to use a painter or other contractor.
Mostly I use him because I trust him in every aspect (quality, honesty, etc.).
Note I use my handyman for many things including demolition. Find a handyman you can trust will result in savings. I would tell you mine but he is unable to keep up with the jobs I have for him.
San Diego, CA · Member since 2015 · 273 posts · 226 votes
10y
@Ryan R.I don't have a contractor recommendation, but I just wanted to say congrats on your deal! My husband and I hope to be in your position later this year. Please do keep us updated with your progress. And again, congratulations!
@Daniel DiazWe are purchasing our property for around $530,000, and have a down payment of around $20,000. Our incomes together are around $145,000/year. As for the loan, we needed enough cash on hand to cover rent for a three month period (an FHA requirement if you are doing 3 or 4 unit properties)
@Marcell Z.@Sarah D.Thanks for the recommendation. I'll give them a call shortly to hopefully have them come out and bid on the project.
Now to find at least one more contractor to come and bid.
Investor · Vista, CA · Member since 2016 · 30 posts · 9 votes
10y
Congrats Ryan,
So excited for you and jealous. My wife and I are planning to do the same thing in May.
My wife is a renovation loan specialist and she likes and has worked with Le land construction -Brian Stafford owner. And she loves Will Johnson as the Hud consultant.
Good luck!
Investor · Vista, CA · Member since 2016 · 30 posts · 9 votes
10y
Awesome! Seriously I am so excited for you. I am new to BP and its great to read about like minded individuals. I hope to hear about your experience.
My best
Investor · San Diego, CA · Member since 2015 · 33 posts · 7 votes
10y
Hey @Ryan R. great to hear someone stepping into real Estate Investing. I hope you guys the best of success! We work with some great contractors all over the San Diego area who are highly trusted with not only our properties but many others. Here to help with any needs you guys have through the process, if you need more bids for contractors in the future or looking for more income properties!
After months of lurking, reading, and researching, my fiancée and I finally have an accepted offer on a triplex. We are going FHA with a 203k loan. The property has had a recent renovation on two of the units, but the third is a mess. Also, the roof and other areas need help.
To that end, does anyone have a good general contractor they can recommend?
I was thinking of making an appointment with a few contractors for the same time so we can get competing bids on what needs to be done. Does that sound like a good plan; or is there a better way to line up a reputable contractor with a competitive offer?
Thanks,
Ryan
Congratualtions Ryan. I tried the multiple contractor/one appointment approach once. A couple guys got mad and wouldn't give me a bid and walk off. One other guy threw out a soft verbal offer and the other guy said, "I'd do it for that too." Didn't work the way I had hoped. Your best bet is to get one scope of work that you give to each contractor and get a their bids for the work. This way everyone is bidding on the same thing, apples to apples.
@Dominic Battezzato Perfect, I'll definitely reach out as we move forward. @Bruce May Thanks for the advice. That definitely sounds like a good plan of attack.
The contractors have gone through the property. Now we are just waiting for the bids to come back. In the interim, we are waiting to confirm the property is fully and legally permitted. If not, we may be backing out of this deal. Who knows, we'll see what tomorrow brings. Always something.
@Manolo D. Three different contractors came out last week. I would have thought the bids would have been in by now, but who knows. I have calls in to each contractor, so hopefully we should hear back shortly.
As for the deal, we're just confirming that two of the units are properly permitted. There seems to be a discrepancy that has popped up in the last three days. If that can resolve itself, and show that all three units are legal, then we are in business. However, if not, then we will walk. It seems like too expensive of a process to try and legalize two units on top of other issues we would have to fix.
Contractor · Los Angeles, CA · Member since 2015 · 4k+ posts · 1k+ votes
10y
@Ryan R. If you have any issues and want to explore everything first before walking away, I have a government (SD Unified School District) inspector that might know more than your average contractor, he won't be cheap but he will know who to contact, he works with larger government contractors that might be expensive but will probably save your deal.
@Don Johnston Yep! So the we ultimately pulled out of the deal after it turned out two of the three units were not legal. That combined with the property being zoned solely for a SFR really made it hard for us to move forward knowing all of that.
So now we just had an offer accepted on a three unit multifamily in North Park and are starting the process all over again. However, I made some awesome connections through the process with the house in National City and can't say enough good things about some of the people I met.
Chula Vista, CA · Member since 2015 · 90 posts · 25 votes
10y
@Ryan R. Fantastic! What area of North Park? My nephew has a house on Montclair that he and his dad are rehabbing/remodeling. It is their personal residence. I've worked on it, too. Seen a couple of rehabs done by Fortune Builders in the same area - Boundary to 30th south of University.
San Diego, CA · Member since 2015 · 2 posts · 0 votes
10y
Hey Ryan, I am new to the site. I am part of a family owned construction company here in San Diego. Getting bids is always the way to go, but I agree with Colin not to have them at the same time. Doesn't motivate well. Never heard of Larry, but maybe ask for references. If he's reputable he'll have some.
Investor · Coppell, TX · Member since 2008 · 2k+ posts · 646 votes
10y
Hello and welcome to BP! I have never been to San Diago but I think I can help you with some advice because of my experience for about 30 years. At first I would advise you to get referals from your Agent (s) and a anybody else that might know. You should get at least 3 written bids and screen then and know what they expect in payments. Finding a good contractor might be difficult but can be well worth it. He can be a key to your success and desire to not keep so much on the job. Do not pay to far ahead. Passive income is one of the best ways to go. Just be careful and do things right! Being a lender is the best way to go. Less than 1 percent of people make it through investment. The paperwork is more important than the property. Good luck!
Investor · Newport Beach, CA · Member since 2016 · 20 posts · 4 votes
10y
Hi @Ryan R., I used to work for a residential company in San Diego called Shear Force Construction. I recently switched jobs because I moved to Newport Beach but would highly recommend giving them a call. They are quick, fair priced and have quality workmanship. I personally worked on multi-family projects with them so they definitely have experience with what you are looking for. They typically take on larger projects but it wouldn't hurt to reach out when comparing contractors. Here is there website with contact info. https://www.shearforceconstruction.net/home.html
Rental Property Investor · Prairie Village, KS · Member since 2015 · 2k+ posts · 2k+ votes
10y
@Ryan R. Thanks for sharing your experience! A lot of folks here are certainly interested in how things go for you on this, myself included! Best of luck to you on your project!