Columbia, MD · Member since 2013 · 7 posts · 1 vote
Hi everyone, I am not certain this belongs in the beginner's forum or here, but here go's. I am finally in position to purchase a rental property in the Baltimore area. I have gone out with a realtor to view some properties and being a novice, with minimal home repair knowledge, I am concerned about accurately determining the costs associated with repairs that may have to be made on the property to get the unit ready for rental. Would a general contractor be suited for this task? The next question is what would I expect a contractor (if that is the right person to use for this) to charge me for this type of assessment? Thanks in advance!
Investor · Washington, DC · Member since 2014 · 71 posts · 25 votes
11y
I would suggest you look for a property that ONLY needs cosmetic upgrades like paint, appliances and fixtures. Maybe a foreclosure that was well maintained or a short sale if you the patience. Read some of the post on estimating repair costs, watch some YouTube videos and buy J. Scott's book. The Holmes Inspection by Mike Holmes is another great book. Learn to spot what's a major issue ie... foundation, roofing, old plumbing. Then when you get a good prospect under contract pay an inspector to verify your instincts. Lastly come up with a scope of work for your repairs and have 3 or more contractors give you estimates. Once you have some experience and/or you've hired someone to do rehab work then they might be willing to do some walk thrus with you.
Investor · Baltimore, MD · Member since 2012 · 605 posts · 103 votes
11y
A general contractor can give you a bid. If you plan to get multiple bids from various contractors, they should not charge you, but I would be careful not to waste anybody's time.
Columbia, MD · Member since 2013 · 7 posts · 1 vote
11y
Thanks for the response Anil. The last thing I would want to do is waste anyone's time. With that being said, ideally I would want someone who could accompany me when I go to tour the potential properties and be able to give me an assessment of repairs and subsequent costs prior to me submitting an offer. Of course this doesn't speak to things that may not be apparent during a tour, such as bad wiring , plumbing , etc but if new Sheetrock has to be installed or maybe kitchen cabinets need to be purchased, they would be able to give me an approximate cost.
San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
11y
Normally, you'd make an offer subject to the inspections, and they'll give you a written report including estimates of the work.
I've never heard of hiring a contractor to go with you to view properties. If you could find one with the time, it seems like it would be expensive.
I'd just take a good look myself, and if you don't see anything glaringly wrong, and you know you want it if it passes inspections, just write an offer subject to inspections.
Real Estate Investor · Cypress, TX · Member since 2015 · 41 posts · 26 votes
11y
When I buy houses I make offers with an option based on inspection. I have the inspector come in and my contractor there at the same time. I have the contractor give me a bid based on what the inspector finds on the spot. I know then if I need to amend my offer based on the amount of work to be done.
Las Vegas, NV · Member since 2015 · 29 posts · 0 votes
11y
Why dont people just say its a sillie idea. To have a General contractor accompany you on properties you MIGHT be interested in....................come on now!
Investor · Washington, DC · Member since 2014 · 71 posts · 25 votes
11y
I would suggest you look for a property that ONLY needs cosmetic upgrades like paint, appliances and fixtures. Maybe a foreclosure that was well maintained or a short sale if you the patience. Read some of the post on estimating repair costs, watch some YouTube videos and buy J. Scott's book. The Holmes Inspection by Mike Holmes is another great book. Learn to spot what's a major issue ie... foundation, roofing, old plumbing. Then when you get a good prospect under contract pay an inspector to verify your instincts. Lastly come up with a scope of work for your repairs and have 3 or more contractors give you estimates. Once you have some experience and/or you've hired someone to do rehab work then they might be willing to do some walk thrus with you.
Columbia, MD · Member since 2013 · 7 posts · 1 vote
11y
Thanks for the reference material Tarik. I just ordered one of the books. I didn't think the youtube posts would help much since labor rates on repairs seem to vary from area to area, but I will check into that. Thanks to everyone who took the time to post constructive advice
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
11y
@Clarence Mungo most contractors are not going to want to go with you to inspect a property you do not have under contract unless they get paid. They want to be sure there is a fair chance they will get the work.
Over time you will start go get a feel what things cost. networking with other investors and learning what they paid for work is a good start. There are lots of clubs in the Baltimore area to network. You can often find myself and @Anil Samuel at the BWI Meetup (Google it)