Hi Friends! My name is Valerie and I am looking into purchasing a property which is mostly gutted. It is located in Montgomery County PA, (near Lansdale) it is a duplex that is a little more than the shell, it has some HVAC work and electrical done, but most of it still needs all the rest of the things that make a house. Like walls. And a bathroom. And a floor so you don't fall through the bathroom onto the first floor. The main goal for me is to establish a long-term relationship with a contractor. If this is something you would be interested in or have a contractor you could recommend, please let me know! It's greatly appreciated. I can forward a link to videos/pictures of the site for more information on request.
Hi Valerie, I'm following this topic because I want to do the same thing. If you don't mind me asking how did you find the property? I am in Souderton and I am in the market.
We found it through the MLS. We're finding that most of the properties in the local area are very overpriced. This house isn't a goldmine, but it's good enough for us!
Yea, prices are kinda crazy. I'm guessing you did a cash only deal? or private lending. This seems to be only way to buy a duplex where you could cash flow.
No not doing that yet. This was going to be a mortgage with a reno loan, but the closing costs actually killed the offer. We meet with the owner tomorrow to discuss other options, he want's to get rid of it. Crossing our fingers! Either way, this deal is entirely dependent upon the contractor's bid. I can't put together a house all by myself with a full-time job, and nor do I want to.
Sounds exciting. Hopefully it goes well with the owner. Dealing with contractors in our area can hard. A one stop gc who will handle everything and you will not have to be on site regularly but will charge a premium.
The alternative is to sub out each job but this requires your involvement much more. The subs typically have less references because they work for a gc, and don't want the gc to know there doing business with someone else. At the same time the gc knows there value is the relationship with the subs and there not willing to give up there subs to you.
If the scope is small but sounds like it's not, you might be able to find truck and ladder type guy who is trust worthy and will handle all the jobs himself. Like handy man level 2. I find these guys either talk a big game and don't follow through. Also since they do many things the qauility of the work is not as good as someone who does one task every single day for the last 20 years. I.e a roofer just lays shingles every day and knows the tricks.
Always ask for a insurance cert and verify it with the company. I've had someone give me a fake one before.
Don't forget permits.
What's you guestamet for Reno budget. If you don't want to post it publicly you can pm it to me. I can look at your pics and tell you what I think which might give you some more info with your negotiations today.