All Forum Posts by: Alex Craig

@Jason D. Yes, agree. Was just thinking that maybe the contractor was not talking apples to apples. Or maybe he was just stoned. Besides painters, I have found carpet layers are the most stoned individuals within the construction trade.

Jeez--that is awful.  I would consult an eviction attorney. States like NY are extremely tenant friendly.  I googled this, maybe your answer lies here: https://ag.ny.gov/sites/default/files/tenants_rights.pdf

@Rafael Chávez you basically have 2 choices here. Build your own team or plug into an existing team that has everything you need under one roof. There is a lot of arguments for both options on Bigger Pockets. You can search BRRRR and Turnkey to see what you think fits the most. Mostly BRRRR is more control and if done right, less out of pocket cash which can help you build your portfolio faster, but much more time consuming, less passive, more risk and likely less cash flow due to maintenance if the rehab is not done right and deferred maintenance not addressed. TK is paying retail for a property, thus more out of pocket, but it completely fixed up with the right TK provider. TK should mean more cash flow. I guess you can say building your own team (BRRRR) will mean less money up front, more down the road. TK is more up front, less down the road. All depends on which strategy is meets your investment goals.

Maybe your contractor is talking about laminate flooring as that type of flooring does require a underlayment for the floor to float.  Laminate hardwood and vinyl plank can look similar, but they are completely different. 

On a different topic, I find tenants like carpet more in the bedrooms, which is less expensive too.  In theory, since most bedrooms have furniture taking up space in the bedroom, the carpet will last longer then carpet installed in high traffic areas.  Vinyl plank should always be installed in high traffic!!!

My quick answer. If you want less out of pocket and have cash reserves to sustain the maintenance on a BRRRR property, then go that route.

If you truly want to leverage all Cap-ex expenses, deferred maintenance and desire more consistent cash flow and have 20% down, then TK. 

Call code for sure or even local news. Code hates slumlords and news eats up stories like this. 

Totally agree with Caleb.  

What Brad says and look at the condition of the comparable house and upgrades. Such things as granite countertops, updated kitchens, etc. a good appraiser should take those upgrades into consideration. The good appraisers will, but the lazy ones may not. My comments are under the assumption that these upgrades would not be considered over renovated for the area. 

I am not in Cleveland, but thought my input would be helpful. On the homes we renovate, it is about $16 to $18 a sq ft for our rentals. That would include new roof, new HVAC, new hot water tank, updated kitchen, updated bathrooms to various degrees, new flooring throughout, landscaping, exterior and interior paint, all new plumbing and electrical fixtures and several other misc upgrades and repairs. That is me acting as the contractor since I have that license, thus zero markup. When I do a contracting job, I net 15 to 21% profit after all expenses. Expenses would include all overhead. Overhead is workers comp and General liability for that job. Then I figure my project managers time on the job, which is on average $800 and office expense is about . The vehicle cost which is about $250 a job. That will add about $5 to $7 a square ft to a job. 

I have not done mailers with any consistency, but when I was actively doing so periodically, what worked for me is driving for dollars. Find the dumpiest looking houses, then look up when they were bought. If 10 years or older, send a letter. The though process was they have 10 years worth of mortgage pay down and may take what they owe or slightly less. This is not efficient, but when I was in the field consistently it didn’t take any time to shoot an address back to my office to research. Also more cost effective too. I would say for every 80 letters, we got 1 deal, but this was 5 years ago and I understand the market has changed and there is more competitors for deals.