All Forum Posts by: Alex L.

This is really going to depend on the contractor, investor, and their relationship as well. 

I have two contractors that I work with regularly. I purchase materials, they pick up or pick out materials. Two different rehab project houses, $11,500 and $11,000 respectively (labor only price). 

Contractor A I pay something like $500-$1000 per week. If it feels like I'm paying too much too fast and the property isn't where it should be, then we'll switch to a "pay by job" case, i.e. once the floors are installed, or the kitchen is done, I'll pay X. This contractor tends to come and go, meaning the job is taking forever to get done, but for the price and the quality of his work, that's fine with me for this particular situation. We have a great relationship. This isn't something I'd recommend to others, but it's kind of just how things turned out in my situation and it's fine.

Contractor B asks for 40% up front, 30% at halfway, and the remaining 30% upon completion. Typically I'd feel a bit uncomfortable paying 40% down up front, but I've seen his work, his reviews, and he's a very trustworthy, reliable, punctual guy who does great work and has awesome attention to detail, so for him, I'm okay paying the 40% down. He provides very detailed estimates and updates with photos, and I appreciate it. Lots of communication.

Other contractors, the most I'd be comfortable putting down is 20% right from the get go, and I always pay for materials... unless it's something, like, getting a deck built, new drywall, or plumbing done, as individual things and not part of a full house rehab. In those situations, I'm comfortable paying for the entire job, assuming the numbers are reasonable and I know I'm not being unreasonably overcharged for materials (and as a previous property adjuster, I have a general sense of how much these things cost). Stuff like flooring, cabinets, bathroom fixtures, etc. I pay for on no interest CCs.

Short answer: Trials and tribulations, or taking recommendations from other RE investors. 

Longer, alternative answer: If it's something simple like a basic wood deck, I'd check places like Nextdoor, local FB groups, or Craigslist for budget contractors. I've personally stopped using Craigslist after too many "sub par" contractors, but have found great success in posting the project on Nextdoor, or in a local FB groups. Interested handymen or contractors comment on the post and give me their contact info, and I reach out. This is not a perfect method, but I've found some great contractors via Nextdoor and local FB groups... in fact, I found my "go-to" contractor through the latter after posting a job description with photo. My other "go-to" contractor was found as a recommendation from my budget HVAC guy.

Sometimes I see ads for a service like this pop up on my FB feed. Like AirBNB, but for pools. Can't remember off the top of my head what it's called, though. Personally, I wouldn't rent out my pool because:

(1) liability - as a former insurance professional, liability is always something I'm concerned about, and pools are a big source of liability concerns.

(2) me time - I enjoy my privacy and don't want strangers in my house, let alone my pool, but also I actually use my pool a lot so this might not be too much of a concern to others

(3) safety/accessibility - if I'm living at the location where the pool is, then that means people will have easier access to me, whether that means knocking on my door during their pool party to ask questions or voice concerns, or seeing my home which may put me/my property at risk in the future if someone less savory or with sticky fingers happens to be renting the pool. 

Those are just my thoughts on the notion, but again I'm already strongly against the idea because of #2. Doesn't necessarily mean it's a bad idea... I imagine it might do pretty well in areas where private pools aren't as common, like midwestern states, but that's just a guess.

I personally install cordless blinds, as well as a curtain rod (or at the very least, curtain rod brackets) so that tenants have the choice to hang curtains if they so choose... and also because that's one less **** up I have to fix. Back before I was "good" at installing curtain rod brackets or blinds, boy howdy did I leave a hot mess. So far, my method seems fine.

No offense Chris, but I've seen several of your posts floating around the BP forums over the last month or so, and based on your negative and defeatist attitude in the face of the plethora of information at the tips of your fingertips with the search function, and also the fact that you keep swatting away advice that is literally being spoon fed to you, I'm not confident that the RE space is right for you.

 Yes, that's true that weed is not an FDA approved drug. However, I still think that in a situation like this, the FDA regulation may be at direct odds with the Fair Housing Act, since they're both at the federal level. So, I'm just saying that I don't think anyone of us can say with 100% certainty that someone can legally deny housing to a prospective disabled tenant on the grounds that they use medical marijuana for their disability. 

I've used my credit cards for quite literally everything. However, some things the only way to pay with a credit card is by taking the cash out of it, sort of like a "loan." I'm not sure how realtor commissions work when it comes to paying them, but I would imagine it's not something you can just swipe your card for. Keep in mind, if you do take money out of the card, there's that 3-5% transfer fee for whatever amount you take out. So, if you're going to finance something this route, make sure the fees make sense. 

 100% agree regarding allowing or disallowing guns. 

As for the marijuana issue, I would think it's more complicated than weed simply being illegal at the federal level. Because if it's for medical use, then couldn't the tenant potential claim that they're being discriminated against as a disabled individual, who takes a certain medication? So then now you've got dueling issues -- marijuana being illegal at the federal level, and the Fair Housing Act making it illegal to not rent to someone due to disability. Sounds like weird limbo space to me where anything can go depending on the state you're in.

In any case, assuming they decide to rent to the tenant in question and can't keep them from smoking indoors, then I would imagine that at least any repairs or remediation needed from damage caused by smoking indoors -- medical or not -- would be able to be deducted from the security deposit.

I personally don't see any sort of recourse unless the purchase agreement specifically included wording that said something about the inherited tenants staying put, which... I don't think is common at all.

The fact that they wouldn't provide the previous landlord's info, on top of simply even being involved in an ongoing claim for property damage, would be an instant hell no from me. The icing on that hell no cake is the potential tenant telling you that they don't have to pay a pet fee because their dogs are ESAs. 

I have no problem with people having ESAs, or simply even having pets as long as they're well-behaved. What I do, in fact, have a problem with is a know-it-all tenant with no tact telling me what I can and can't do. There's nothing worse than an entitled individual, tenant or not. I'm pretty sure that landlords across the board can request a letter from a health care professional, but anyone can buy one of those letters online for like $40 so it's not worth wasting your time even asking.