lessons learned from my first 20 unit rehab

lessons learned from my first 20 unit rehab

Rental Property Investor 路 Lake Suzy, FL 路 Member since 2018 路 171 posts 路 216 votes

Reached a major milestone after nearly a year and a half....converted my construction loan to permanent financing!!! On 5/31/18 we closed on a 20 unit property that was 100% vacant and in need of lots of love! We added washer/dryer connections to all units and ductless min split heat pumps. Full stainless kitchen appliances including above range microwave. Textured all walls, painted all brown woodwork, new flooring, all new plumbing fixtures and toilets, bathtubs as needed, water heaters as needed....we did a lot!!! For a first time project i'd say we learned a lot and although the project took twice as long to complete as we planned, it's still a huge success! We are currently 85% occupied and 95% leased and expect to be 100% before end of year! This form definitely helped me get through some rough patches either by reading through others posts or posting my own questions. Now I'm asking myself what's next, lol! I'm hooked

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Rental Property Investor 路 NC 路 Member since 2018 路 776 posts 路 776 votes
6y

Congrats on your success! Can you post some of the numbers?

See this reply in the discussion

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  • Rental Property Investor 路 Lake Suzy, FL 路 Member since 2018 路 171 posts 路 216 votes
    6y

    @Jodi Bailey

    Hello Jodi! Yes I'd love to talk with you about my development ideas! I've started some preliminary talks with a architectural firm from Tulsa and really just brainstorming at this point but I'd love to connect with you sometime.

  • Rental Property Investor 路 Lake Suzy, FL 路 Member since 2018 路 171 posts 路 216 votes
    6y

    @Nigel Guisinger

    Thanks Nigel! I'm definitely bitten by the bug, lol! I'm 53 and work a full time job in addition to real estate investing and would love to retire sooner rather than later! That being said...my W2 job and fico score helped me secure this deal, so kinda scary to think of leaving it behind, lol!

  • Rental Property Investor 路 Lake Suzy, FL 路 Member since 2018 路 171 posts 路 216 votes
    6y

    @James Edwards

    Hello James! Retirement....what a sweet sounding word!

    Best of luck with your project in Muskogee! Do you live there as well? I've seen some

    pretty good deals there

  • Rental Property Investor 路 Lake Suzy, FL 路 Member since 2018 路 171 posts 路 216 votes
    6y

    @Louis D.

    Thanks for the kind words Louis!

    Funny thing... when the original appraisal was done for the rehab loan, I mentioned to the appraiser that I wanted to add the washer/dryer connections but that I hadn't gotten and solid bids from contractors for

    the work so I wasn't sure if I would do

    it or not. That being said, the upgrade wasn't included in the ARV appraisal, ugh! At any rate I new that it shouldn't be too difficult to do...had extra closets that backed up to the bathtubs and could run dryer vents between floor joists. Found a reasonable plumber and Lowes made me sweet deal on the whirlpool stackables, so we got'r done!

    I was looking to add value as well as longer term residents, I mean who

    likes lugging baskets of laundry in pouring rain or during a blizzard, lol!

  • Rental Property Investor 路 Lake Suzy, FL 路 Member since 2018 路 171 posts 路 216 votes
    6y

    @Rob Milliken

    Thanks for the congrats!

  • Rental Property Investor 路 Lake Suzy, FL 路 Member since 2018 路 171 posts 路 216 votes
    6y

    @Ian Walsh

    Well let's hope I bought right, lol!

    I'm hoping I can find a larger property at some point.

  • Rental Property Investor 路 Lake Suzy, FL 路 Member since 2018 路 171 posts 路 216 votes
    6y

    @Roman Roy Barrett

    Thanks for the congratulations Roman!

  • Rental Property Investor 路 Lake Suzy, FL 路 Member since 2018 路 171 posts 路 216 votes
    6y

    @Ola Dantis

    "Rinse and repeat"! I love it! I hope it's that easy! Thanks

  • Specialist 路 Tulsa, OK 路 Member since 2012 路 49 posts 路 14 votes
    6y

    @Tab Teehee What bank did you get those terms? 

  • Ocala, FL 路 Member since 2019 路 15 posts 路 15 votes
    6y

    Congratulations on your success. We are looking to rehab a roach motel into upgraded apartments in Florida and I am glad to see you having success with a similar project. 

  • Contractor 路 Tulsa, OK 路 Member since 2019 路 12 posts 路 4 votes
    6y

    @Tab Teehee      Yes, I Live here in Muskogee. I've been living here for about a year and a half now. I am currently rehabbing a four unit I picked up at a great price. I have been learning and watching the market around here and you're right I have seen a few deals. Once I'm done with my current project I plan on grabbing up a few more pieces.

  • Pembroke Pines, FL 路 Member since 2019 路 12 posts 路 4 votes
    6y

    @Tab Teehee

    Hi Tab, great accomplishment! To get it done at 21K per unit is awesome, I saw the before and after pics. Hope you didn鈥檛 have to overhaul the plumbing lines and parking lots etc. ultimately doing it yourself makes a lot of sense, at least the first time around. Next time you can do better in terms of using GC.

    I sold my 42 unit MF last year after doing something similar, in Hampton VA. When I bought it is was 75% occupied with some delinquency. Rehabbing was a challenge since we had to work on empty units first and then coax tenants to move to the rehabbed ones.

    Lessons that I learnt:

    Should have done a thorough inspection of all units and common areas to get a good estimate of rehab budget.

    Having an on-site maintenance man helps when there are a lot of service calls. Also keeping some building supplies handy, maybe in storage, helps reducing maintenance costs.

    Need a savvy and committed property manager who can fill empty units and keep tenants happy. Take your time selecting one.

  • Multifamily Syndicator 路 Houston, TX 路 Member since 2016 路 1k+ posts 路 2k+ votes
    6y
    Originally posted by @Tab Teehee:

    @Ola Dantis

    "Rinse and repeat"! I love it! I hope it's that easy! Thanks

     Anything worth doing and doing well is NEVER easy!  

  • Rental Property Investor 路 Lake Suzy, FL 路 Member since 2018 路 171 posts 路 216 votes
    6y

    @Sam Sendgraff

    Hello Sam....believe it or not RCB Bank

  • Rental Property Investor 路 Baltimore, MD 路 Member since 2016 路 253 posts 路 178 votes
    6y

    Nice Job!

  • Edmond, OK 路 Member since 2012 路 456 posts 路 270 votes
    6y

    @Tab Teehee

    What is the bank you got your financing at?

    Best wishes on your journey

  • Member since 2019 路 25 posts 路 5 votes
    6y

    @Tab Teehee congratulations!! thank you so much for sharing!!

  • Real Estate Agent 路 Los Angeles, CA 路 Member since 2019 路 49 posts 路 14 votes
    6y

    @Tab Teehee thanks for sharing! @Markesha Smith

  • Flipper/Rehabber 路 Houston, TX 路 Member since 2019 路 3 posts 路 1 vote
    6y

    @Tab Teehee great job馃挭馃挭馃挭

  • Real Estate Agent 路 Bronx, NY 路 Member since 2017 路 88 posts 路 55 votes
    6y

    @Tab Teehee great stuff! Looking forward to reading your next post on what you find next. What is the unit breakdown and average rents in that area?

  • Rental Property Investor 路 Charlotte NC 路 Member since 2019 路 306 posts 路 183 votes
    6y
    Originally posted by @Tab Teehee:

    Reached a major milestone after nearly a year and a half....converted my construction loan to permanent financing!!! On 5/31/18 we closed on a 20 unit property that was 100% vacant and in need of lots of love! We added washer/dryer connections to all units and ductless min split heat pumps. Full stainless kitchen appliances including above range microwave. Textured all walls, painted all brown woodwork, new flooring, all new plumbing fixtures and toilets, bathtubs as needed, water heaters as needed....we did a lot!!! For a first time project i'd say we learned a lot and although the project took twice as long to complete as we planned, it's still a huge success! We are currently 85% occupied and 95% leased and expect to be 100% before end of year! This form definitely helped me get through some rough patches either by reading through others posts or posting my own questions. Now I'm asking myself what's next, lol! I'm hooked

    Congratulation!! Keep the great work up!  

  • Michael S.Pro Member
    Rental Property Investor 路 Richfield Springs, NY 路 Member since 2014 路 59 posts 路 8 votes
    6y

    @Tab Teehee

    Awesome!! My wife and I are looking to do something similar. Starting a single family flip next week to generate some cash. We are looking out of state, haven鈥檛 decided on an area yet but it鈥檚 very inspirational to see what you have done. Love @biggerpockets for giving us all an opportunity to help each other and learn. Best of luck in your next venture

  • Rental Property Investor 路 Lake Suzy, FL 路 Member since 2018 路 171 posts 路 216 votes
    6y

    @Michael S.

    Yes I agree it's great to connect on here with like minded people! I hope I've shown some people not to be afraid to look outside of their local area. Having some first hand knowledge of an area and meeting some locals would be huge in making the job a little easier though. Best of luck to you!

  • Rental Property Investor 路 Lake Suzy, FL 路 Member since 2018 路 171 posts 路 216 votes
    6y

    @Craig Gaydas

    Good luck with the roaches, lol!

    That was one good thing about my project, most of the units had been vacant for so long that any roaches would have died of starvation long ago! All joking aside....if you do encounter a roach problem, there is a product call Vendetta roach bait, that is incredible for long lasting results without any odor or sprays.

    I've wondered about the Ocala market as I've seen some deals up there.

  • Rental Property Investor 路 Lake Suzy, FL 路 Member since 2018 路 171 posts 路 216 votes
    6y

    @Jai Reddy

    RCB bank

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