Tips for finding a good contractor, fire damage, and rental props - Liberty, MO
Hello BP,
I have some tips for those of you who are currently investing or considering investing in areas like Kansas City, MO, Liberty, MO, Riverside, MO, Parkville, MO, and Gladstone, MO. Recently, we had a fire at one of our client's homes. Fortunately, our property management company was able to handle everything. Our team has flipped or BRRRed over 150 properties for our clients and ourselves, and I'd like to share a photo and pointers to help you spot a good contractor.Here's some background on the fire: it started in the garage, and the source of the fire was undetermined. The theory is that faulty power tools caused it, but investigators couldn't confirm this. The fire spread to the kitchen and living room, and the house was rated a complete loss after fire trucks soaked it. Repair estimates ranged from $220k to $280k, which is more than the house's sale value.
We recommend that our clients carry insurance with coverage of $50k or more over the property's value to prevent situations like this. Additionally, renters' insurance should be equal to homeowners' insurance.
Currently, we are finishing framing, roughing in electrical and plumbing, and preparing for inspections this week. The HVAC and roof are complete and have passed inspection.
Some tips to keep in mind include:
- A professional contractor will keep the site clean. Tools and materials will not be lying around.
- Electrical boxes should have wires tucked back inside. Any wires sticking out of the box that are not capped and left that way is a sign of an unprofessional electrician.
- After a fire, all studs should either be removed or sprayed with a primer like Kilz to ensure no fire odor. If the studs are not damaged, they can stay, but if the contractor hasn't sprayed them with a primer, they don't know how to handle fire damage.
- Every municipality has different rules, so it's essential to find out for yourself or ask your general contractor (GC). In this case, Liberty requires a mid-install and finished roof inspection, while most municipalities only require an inspection at the end. Be sure to hire a reputable GC to avoid additional expenses.
- Permits are a must. Skipping permits is a clear sign that you've hired the wrong GC or company. Proper permits and inspections protect you as the owner later in case something happens.
- If you have good quality hardwoods, try to keep them. They last longer, look beautiful, have value, and can be sanded and refinished. Avoid carpeting over them.
- If you have a major renovation, use it to your advantage. Rework the kitchen layout, add a fence if the budget allows, finish off a basement, remove outdated features, create a new attic access with steps, etc. If your GC can not accommodate these items within the given budget, shop around.
I hope these tips help. Happy investing!
