Santa Ana, CA · Member since 2016 · 29 posts · 19 votes
Good morning BiggerPocketers,
I have a degree in construction management and currently a construction Project Manager for a drywall company. I have done projects anywhere from a 42 stories luxury high rise, luxury retails, hospitals, school, and to smaller tenant improvements.
Please feel free to ask away any questions you guys have regarding to construction such as rehabilitation, scheduling, framing, drywall, taping, ceilings, soffits, material prices, budgeting, and/or anything. I will answer your questions to my best knowledge and if I do not know the answer, I will find out.
This is my attempt in giving back to the BiggerPockets community since I have learned so much from here. Hopefully I be able to help this community out in answering questions.
Feel free to connect with me and ask private questions if you don't like to post your questions here.
Investor · Riverside, CA · Member since 2014 · 239 posts · 177 votes
9y
Julie Marquez sorry to poke my nose into your question, but as for drywall, honestly you might run into a bit of trouble with a dry waller not wanting to mud the walls/ceiling for as cheap as you'd like purely based off the reason that they didn't install it, but there definitely is the exception. One reason I say that is, if you install it with many dips, bumps, holes etc, they will have to come back and do multiple coats of mud, thus taking away from their profit. Once again though, there's definitelyyyy the exception. As for "green board", you always hang a sheet behind kitchen/bath vanities, and in showers, the preferred method is to use Hardi backer or mud float, not drywall. But that's just my opinion. All of our showers are with Hardi backer which is readily available at Lowes, Home Depot etc. Back to drywall though, I never deter anatomy from attempting drywall themselves at some point, because it's SUCH a good lesson and trade to know. But if it's on a large scale, sub it out. Hope that helps
From what I have seen, people do invest in old construction properties. I am not sure how often do they replace their roofs but there are many reason why they would replace them.
1. Asphalt Shingle lifespan is around 10-15 years (we prefer to use lighter roofing materials and lighter materials in California for Seismic reasons) comparing to metal which is 30-45 years, much heavier product.
Thank you Darren! Shingles - that explains a lot. They aren't used in Australia that much (I haven't seen them here) but saw a lot on my trip to the US. I did not go to seismic areas but saw a lot in Texas, which still leaves me wondering why they are prevalent there if they are so high-maintenance.
Katrina Malyn The most common type of roof or shingles which have pitch 4/12 or greater. Most homes built in with light frame construction build in the 70 80 90's use 20 year shingles. Most flippers buy older homes. It is about time for these roofs to be replaced.
Thank you Taye. Shingles - that is probably the answer. I also wonder why shingles? Are they better than tiles or metal?
Investor · Ocala, FL · Member since 2016 · 299 posts · 110 votes
9y
@Matt McConkey In Florida, we also have to pull permits to add another meter to properties, which may include an upgrade to the current code (such as having the wire 4' above the roof, while the old wiring was attached to the facia). On the flip side, in Florida, we cannot cut off the utility to a tenant even if they are not paying rent so they can stay longer in the property and run up the bills. I never put any utilities in my name, so would rather pay the extra to make each tenant responsible for their own bills (same with water meters). When you pay for the utility bills, there is no incentive to conserve electricity or water.
It's hard to get insurance on a rental house if the shingle roof is over 10 years old in Florida. With the sun beating down on roofs year round, or leaves falling and sitting there causing moisture to go under the roof and rot wood, the usefulness of shingle roofs is not a lot over 10 years. I recently purchased a house with a bad roof and after getting estimates, found a local metal only roofing company that was only $1,000 more than shingles to replace the roof and it comes with a 40 year warranty. For the small difference in price, I am going with the metal roof.
Santa Ana, CA · Member since 2016 · 29 posts · 19 votes
9y
Eddie T. Visual inspection of wear and tear. Loss of structural integrity such as leaks, and loss of aesthetics.
Hope that helps. Feel free to ask if you have any other questions.
Real Estate Broker · CA · Member since 2016 · 243 posts · 226 votes
9y
@Darren D. Ngo have good flooring guys you want to recommend? Here is the issue: I know a bunch of guys. Specifically the guy I use on all my apartments is who fast and reasonable for apartment type flooring. But they are all coming in so high. We just moved and I would like some nice wideplank hardwood in my house. I know what it should cost and the bids are just ridiculous because of where our new house is located. But they come out here and just can't help but mark everything up. I really don't feel like measuring everything and then calling around for quotes stating that I live in Riverside so I can get a reasonale price. We are talking $14-$20 a foot no baseboard plus like 10-15k for the stairs. Like you know, the cost of a new Porsche. Without any options, but still.
Rental Property Investor · Shakopee, MN · Member since 2015 · 985 posts · 374 votes
9y
I don't know if I am using the correct terminology. But a house I looked at had like a 2 inch gap between cinder blocks on the basement wall. This went all the way across for probably 4 feet. One row was about 2 inches below the top row. Is this something to be concerned about? We thought maybe there was saturation from water or it got disrupted when they did the sidewalk on the other side.
Investor · Northeast · Member since 2014 · 57 posts · 41 votes
9y
@Darren D. Ngo - I did not read every question (so my apologies if these are duplicates).
2 Qs:
1) In your experience how do you deal with avoiding "project fatigue" in keeping your GC and team motivated at the end of a project when things are 95% complete and people are getting ready to move on? Anything specific you do here to really keep the team motivated to push to the end (other than $$$)?
2) In your experience - how do you best structure your contracts with investors/partners to incentivize your GC and team to do high quality work and save time/money?
Bonus..
3) What do you use for a cost per square foot on a cosmetic rehab? and how much do you plan for a "buffer"?
Rental Property Investor · Cedar City, UT · Member since 2016 · 209 posts · 45 votes
9y
@Taye N. those are tough questions to answer in a general way. One could give a broad answer and be way off base. The material cost varies from area to area, let alone state to state. The same problem with what the labor would be to do the project. If you get 2 or 3 Companies to bid, then you will know what the above is (they should have a breakdown of the cost of materials and labor in the proposal).
Investor · Redding, CA · Member since 2016 · 180 posts · 102 votes
9y
Do you have much experience with stucco? We're looking at a house to flip that has some major stucco issues. One stucco contractor gave us a doom and gloom scenario about repairing the exterior. His quote was $15,000 for a 900 sq. ft. house and that was without doing any sand blasting, which he doesn't do. Even for CA that seems high. The house itself is on the market for $90k. Is there a way to peel back all the existing stucco to the lathe below it and then just re-apply the stucco layers?
Santa Ana, CA · Member since 2016 · 29 posts · 19 votes
9y
Matt Hoyt
Unfortunately I do not know any flooring contractors. What you can do is get those contractors out there and bid against each other. You take the lowest price and ask each of them that "this guy is quoting me at this price, if you can beat it by X-amount then the work is yours". The point is to get a more competitive price. This method is called "bid shopping" and is illegal in public work bidding, but your house is not a public work project so you can utilize this method.
Investor · Redding, CA · Member since 2016 · 180 posts · 102 votes
9y
@Eddie T. - almost every flip house we look at needs a new roof. The giveaways are the age of the roof (that may be included in the MLS listing and, if not, the County or City building dept should have the previous roofing permit on file so you can find the age that way), leaks anywhere inside the house, wear and tear, melting or warped end caps (the pieces that wrap around the edges on comp roofs), missing shingles and eave damage.
Santa Ana, CA · Member since 2016 · 29 posts · 19 votes
9y
Brent Paul I am not familiar with basement since we have so few of them here in California. If the gap is not affecting your property in anyways, you can just seal it up with a sealant. If leaks is the problem then you need to waterproof the gap and seal it.
Hope that helps.
Santa Ana, CA · Member since 2016 · 29 posts · 19 votes
9y
David Sohn I am new to investing so I cannot answer your investing questions.
To keep your team motivated at the end of the project is to present to them the schedule. Tell them the consequence of not closing the job out on time and the liquidated damages. And usually, you have to hold a 10% of retention of their contracted scope as leverage for them to close out the job or get them to come back and touch up on imperfections. But make sure that your 10% retention is on the original contract or else you cannot enforce that upon them after the contract is already signed.
Cosmetics rehab is hard to give a footage price. It could be anything ranging for walls, ceilings, kitchen, flooring, or paint. Also depending on regions. Because of those reasons, I cannot give you an answer on that.
Sorry for not being that helpful on your questions.
Santa Ana, CA · Member since 2016 · 29 posts · 19 votes
9y
Chris Low yes. But all my experience with it is on commercial projects. If you want brand new stucco and lath, you would have to demo out all of the existing stucco and lath, and introduce a new stucco system. And that is going to cost you a lot of money. Without seeing it myself, I cant suggest a specific solution. But if it is not leaking nor badly damaged, you can always just touch it up with a finish coat and have it look good again.
Hope that helps.
Hayward, CA · Member since 2009 · 258 posts · 62 votes
9y
Chris Low i think stucco is around 5 to 7 sqft and depends on the texture.
So 900x6 $5600
I say you call a contractor and ask him how much per sqft do you charge for stucco.
Most can give you a close estimate before even coming out.
san jose, CA · Member since 2016 · 18 posts · 14 votes
9y
I thing @Taye N. is right on. i did 1000sqft house with new stucco for $5k. I had several people at that price so it wasnt a lowballer, etc. You can put new stucco over old - chip out the bad areas and re stucco everything and your cost will be $2k instead of $5k.
as far as motivating contractors - i like the carrot and stick approach. Carrot - be nice, understanding, flexible and offer to give them 5 or 10% extra if they finish ON THE date they agreed to at the beginning of the project.. on the flip slide keep after them..if they say they will do something on a specific day demand that they get it done. Also do not pay the last, per contract, 10% or whatever until everything is done. and be quick to put them on warning that you will get someone else to finish the work if the project slips. and most important do not pay for more than the work they have completed..so no deposit, progress payments that are reasonable and the last 10% or so after everything is done.
Hayward, CA · Member since 2009 · 258 posts · 62 votes
9y
Brent Paul
If there cracks in the mason walls and located in the basement it could be a big problem.
You will have leaks and later walls to be out of plumb if it continues to move. You check the walls that are sitting on it and see if they are level. You should check the floor to see if you have any uneven spots.
In california we can them cmu and are filled with rebar and concrete in layers.
Real Estate Broker · CA · Member since 2016 · 243 posts · 226 votes
9y
@Darren D. Ngo Yes solid advice I agree. I have done that plenty of times but you need to be relatively close. These bids are nuts. Thought since you were local you might know someone. I will figure it out as I have no choice, I foolishly promised my wife before we moved in.....
David Sohn I am new to investing so I cannot answer your investing questions.
To keep your team motivated at the end of the project is to present to them the schedule. Tell them the consequence of not closing the job out on time and the liquidated damages. And usually, you have to hold a 10% of retention of their contracted scope as leverage for them to close out the job or get them to come back and touch up on imperfections. But make sure that your 10% retention is on the original contract or else you cannot enforce that upon them after the contract is already signed.
Very helpful, thanks for offering your advice and expertise Darren! Best of luck to you!
Santa Ana, CA · Member since 2016 · 29 posts · 19 votes
9y
I actually Know somebody. I thought in You were in Riverside. If you don't mind, shoot me your phone number and if the contractor is interested, he will call you and give you an estimate.