All Forum Posts by: Adam Oldham

Looks cool and the units appear to be fairly new! How much are they asking for the building?  

I would definitely ask the property manager what the atmosphere is like at the facility, what a typical tenant is like, how long do they stay at the apartment complex. How do tenants typically pay and if they pay on time. When you get farther into due diligence I would ask for the rent rolls to see how many units are paying, how much their paying etc. 

Additionally, for the building I would be looking at the roof and the exterior of the building. If they look worn put together a budget for how much it would cost to repair. For the units themselves I would look at the mechanicals e.g. water heater, furnace, bathtub, ac units etc. These will typically be expensive items to repair so you want to have an idea when these will need to be replaced. 

If you go under contract I would definitely check out each of the units individually and have a contractor walk the units with you. This should give you an idea of the price to fix up the units. I would definitely spend the time to visit as many units as you possibly can or have someone else who is knowledgeable and then record the details of each unit in a spreadsheet, take pictures etc. This will be helpful when putting together numbers. 

Hope this helps! 

Adam 

I was curious if there is any general consensus on how long a 900 sqft single story ranch should take to completely rehab. In my mind I have always budgeted 2-3 months but this time and time again seems to be overzealous and tends to be much longer. I have done several flips but all of them tend to take longer than I expect. I am not sure if it is a contractor issue or just that projects like this take this long. 

To give more details about the house it was a full renovation, we had the house gutted all way down to the studs on interior/exterior, at one point you could see through the house. We opened up the living room/kitchen with headers, installed a new roof, siding, flooring, trim, doors, tile shower and floors, paint, installed new subfloor etc. 

With these details in mind how long would you budget to complete a renovation project of this size? Additionally our bid to complete this project was approximately 85-90k for the full renovation and we provided a large portion of the materials(e.g. framing, siding, roofing, finished fixtures etc). Knowing this do you think the rehab cost was reasonable? 

Hey Jason looks interesting how long did it take you to receive your permits. I’m currently still waiting for mine. I applied during all of the COVID stuff. 

If you have done out of state investing how do you come up with your scope of work and verify that the work done by the contractor is good and meets all the local building code requirements? 

In my case I invest where I live but I feel like I don’t know enough to be my own GC or to dispute a contractor when I feel the work is not on par with how it should be?

How would you go about verifying the GC’s work or verifying subcontractors work meets local building requirements? Because I am not an expert in construction but I would like to think after doing a few flips I have a general idea of what to expect, and could spot when work appears to be sub par or not fully completed to the extent it should be.

Normally I would think bring in a 3rd party such as another contractor or an inspector but in the case of a contractor I feel like a lot of contractors trash other contractors work, so this may not be helpful and an inspector may not know enough about foundation work for example to know between good and bad quality work.

Thanks in advance for any input!

Best,

Adam Oldham

Hi Biggerpockets, 

Can anyone recommend an HVAC contractor in the Indianapolis area? I am currently working on a house that will need new ductwork, furnace, ac etc. 

Thanks! 

Adam 

I am looking into pre-fabricated construction for flips. My goal is to have quicker construction times and potentially save on the materials/labor costs since most of the construction is done before the house arrives. Does anyone have experience flipping homes with modular construction?  

I went and toured Rochester Homes this weekend to take a look at their factory and process. The results seem promising but I have yet to sit down with them to talk numbers since there is a lot of variable cost based on the level of finish, lot condition, and then hiring a 3rd party to finish out the final details e.g. making final electrical connections, connecting plumbing to main drive line, running duct work etc. 

With all of this said does anyone have experience with pre-fabricated construction? If so what has your experience been like? Do you think you are actually saving money or is it more of a time aspect? 

Investment Info:

Single-family residence fix & flip investment in Indianapolis.

Purchase price: $32,500
Cash invested: $25,000
Sale price: $79,900

Charming 2 Bdrm Bungalow just blocks south(walking distance) from the heart of Irvington, shops, restaurants. Completely updated home, new cabinets, new countertops, new appliances, new flooring, updated bathroom. Nice covered front porch, open living rm to dinning rm, turn the basement into more living space, work shop, or just extra storage, detached garage works for multiple purposes. This home has just the right mix of old and new to make this the house a place you can call home!

What made you interested in investing in this type of deal?

The project was fairly small and mainly cosmetic so I knew it would be a good place to start for my first flip.

How did you find this deal and how did you negotiate it?

I found this through a wholesaler and we negotiated the price down a bit since it had been on the market for a while and we developed a relationship with the wholesaler.

How did you finance this deal?

Private money

How did you add value to the deal?

We gutted the kitchens/bathroom and installed new faucets, bathtubs, cabinets, etc to create a fresh, modern look.

What was the outcome?

We ended up selling the property for a profit and learned a lot about the renovation process.

Lessons learned? Challenges?

Since I had never done a flip before, the hardest part was understanding how to fix the problems we saw and what it would cost to get the job done. In retrospect after doing more flips since then I realized that what I envisioned as major problems were only minor and easily solvable. I have learned to break down large issues into smaller steps to identify my fears or concerns, and then create a game plan to solve them.

Hey Antoine, 

Yes I am looking to build these homes in Indy, in areas such as Fountain Square, Bates-Hendricks and a few other areas. 

Hello everyone, 

I am looking into doing development work with pre-fabricated homes but more on the higher end with a modern, contemporary look. Does anyone have good recommendations for manufacturer's who build pre-fabricated homes? I am looking to bypass retail companies that sell the homes to homeowners and go straight to the manufacturer to then sell the home. Thanks in advance for any input or suggestions! 

Adam

Hello everyone, 

I am looking to build houses with a traditional or contemporary look and I was wondering if anyone had recommendations for builders to build a home. I've done some preliminary searching but everything I have found has been more geared to building a home for the home owner and not from the investment side. If you have any recommendations please let me know. 

Thanks, 

Adam