Does anyone know investor friendly general contractor in Richmond ?
I am looking for someone who is capable of handling minor/Small Scale Renovations on single family properties.
Also, someone that has no problem meeting me at a walk through on a potential property and providing me with a scope of work and estimate on site.
Any help would be greatly appreciated!
Contact Pete through this website and he'll walk the property with you and give you a high, med, low scale budget. He will also create a scope of work for you. Of course all of this is at a fee but he's great to work with because he's patient with new and experienced investor and really explains things to you in depth. He's also accurate with his number which I can confirm after walking many properties with him and getting several different pricing opinions.
@Charan K. I haven't personally used them but I have been referred by a few people that I have previously worked with to Jason Bhattacharya and Farrar Construction.
@Charan K. I don't think any contractor will walk through a property and gives estimates before an a ratified contract for free. If you find one that does, count yourself lucky!
@Amy H. Thank You for the referrals.I can do the rough estimate of the repairs. But prices vary based on many other factors and local market. So, I need them during due diligence period to cross check the Numbers.
I don't like to waste their energy on a property which I am not going to close.
I second Pete D. He is fantastic. He helped me out a great deal as a new investor.
Best of luck!
Hi Charan, It will be difficult to get a contractor to look at a potential property if you've never work with them before. I've never worked with Pete but have heard great things about his services at REI meetings.
@Charan K. It cost $90-- I used the service this June. I have heard, however, that prices have gone up to something like $120.
@Alma Kenup Thank you !!
@Charan K. That's an area that is flipping right now. I've seen quite a few renovated homes come on the market over there in the recent months. As long as it cash flows and you've accounted for all of the appropriate expenses.
@Amy H. Thanks for the Quick Feedback.
It's a turnkey property with monthly cash flow around ~300 (Monthly Rent: $800, Expenses: PM:$100,CAPEX:$100,Vacancy:$100,Tax:$70,Insurance:$30,Other Expenses:$100).
@Charan K. I would build in a buffer for taxes to play it safe. Oakwood didn't see an increase in property assessment value this year over 2014 values but every surrounding area around Oakwood did. Church Hill had an average of 31.5% increase, Chimborazo had an average of 31.7%, Church Hill North had 27.0%, Union Hill had 45% increase, and Oakwood Cemetery had an increase of 23.8%. That would increase your taxes a good amount. So if you say this house has a current tax assessment of $70k, maybe build in $15-20 a month to cover your bases in case Oakwood assessment starts to increase as well. Most likely though, your rent will also increase as the area starts to appreciate.
Also, is the house recently remodeled or renovated? $1200 for repairs isn't a lot when the homes are built in the 1920s in that area. Make sure the HVAC system and roof are in good condition and can last while you build up your CAPEX reserves.
If you're paying cash for the whole thing, check your CoC return before investing. I've seen a lot of NOVA investors come down here and have awful CoC returns because they are thinking just because they can pay all cash for a house, that it automatically makes it a great deal (I used to manage REOs for HUD). That's not always the case.
@Amy H. Thank You, Very Much. I will consider taxes as $100 /month to keep me safe. House is fully renovated, it don't require any major repairs at this point of time. Condo HOA covers Roof and Exterior Maintenance. My CoC is about 8%, I am planning to leverage it some time down the line.
@Charan K. Are you planning to buy this property all cash? When you say cash flows ~300, I would also run the ROI. I didn't see any estimates on mortgage which got me questioning whether the property is actually worth it or not for you.