All Forum Posts by: Allen Tracy

Thanks @David Robertson for that document.  I have the book on estimating rehab costs but figured I'd ask in the local Columbus forums to get more specific numbers.  I live in Los Angeles so the numbers here are insane but my properties are in Columbus.

Good to know about the fencing, I had a quote and it was just over $4,000 which I thought was high but sounds like it's just about right.

Does anyone have a worksheet with general costs for itemized rehab/replacement items?  I'm trying to put something together so I can do a really rough estimate of costs to fix a property after the inspection but before final purchase without having a contractor walk the property.  Just something to get me in the ballpark.  They can either be labor only or labor and materials.  I mainly purchase multifamily in B- to C neighborhoods.  Here are numbers that my property management company has given me so far.

Roof - $3.45sqft (I've heard it's good to budget $5-$6sqft)
LVP Flooring - $3.50sqft
Furnace Replacement - $1,500
Water Heater Replacement - $845
Windows - $650 per window

I currently don't need full gut numbers or numbers that can vary super wildly like foundation issues but looking more for cosmetic rehabs for unit turns and/or general replacement items that would pop up in an inspection report.  I've hear unit turns/small rehabs on multifamilies with 2bed/1bath a good number to budget is anywhere between $8,000 to $12,000 per unit.  Obviously they can be done for more or less depending on chosen materials and much more if unforeseen problems pop up.  Let me know what you guys are paying for the above and below items and anything else you have numbers for.

Outside/Inside Paint
Gutters/Downspouts
Exterior/Interior Door Replacement
Kitchen Turn/Rehab 
Bathroom Turn/Rehab
Backyard fence

Now that I own a few units I've seen the horrible side of direct marketing.  I don't mind getting post cards or letters in the mail but I now receive texts all the time asking me about selling my properties.  Somehow they got my Mom's phone number also even though she's not on any of my properties and send her the same texts about my specific properties.  I also was getting a phone call every day where the person wouldn't leave a message.  After a week I finally answered and they asked if I was willing to sell my property I had just purchased.  I was so furious with them it really hurt their chance of me working with them.  Leave a voicemail and I'll call you back if I'm interested.

Some of these marketers make so many calls that the mobile service marks them as Potential Spam or Marketing on caller ID.  When the phone company detects a single number making many calls in a row it flags the account and automatically assigns it that Spam caller ID.  Just a tip for all those direct phone marketers, take it easy on calling tons of people right in a row unless you want to be assigned Potential Spam or Marketing caller ID.

Good question because I prefer carpet in my personal bedroom but non carpet floors seem like a better choice for rental.  One place I lived in had hardwood in bedroom and I just got rugs for both sides of the bed.

It definitely takes a while to figure it all out. And once you figure out what you’re interested in and you purchase a few properties your goals may change. It’s good to know what kinds of options are out there. 

 Hey James, looks like you're new to the forums, welcome!  You may have a hard time finding help from people if you're looking for "anywhere that has the best deal".  That could mean a lot of different things to a lot of different people.  You'll want to go ahead and do your research to narrow down what "best deal" means to you.  Do you want cash flow?  Cash on cash return?  Equity?  Are you interested in single family?  Multifamily?  Do you want turnkey or a fixer upper?  Do you want to house hack?  What type of neighborhood are you interested in, A, B, C?  How do you plan on funding your "best deal"?

Make sure to do your homework, ready books (lots of them), watch/listen to podcasts (lots of them), read through the forums, run the Bigger Pockets calculator over and over.  Narrow down exactly what you're looking for.  The really good agents are super busy and can definitely help guide to the right parts of a city to buy in but they can't help you determine what a best deal would mean to you.  Here's an example that I used on my first few purchases.

"I'm looking to purchase an out of state multifamily home.  I'll be paying cash and I have a budget of $75,000-$150,000.  I'd like something that is in decent shape but needs some light cosmetic work so I can add some value.  I'm aiming for 12% cash on cash return and $150 a door cashflow.  I'm comfortable with something in a B- to C class neighborhood."

As you start to search and run the numbers your criteria may change which is totally find but you'll want to give agents an idea of what to send you and they can recommend the areas where you can find those properties.

Hope that helps a little.

Hey Sean, nice to meet you.  I've got a couple of duplexes in Columbus so far.  I am always trying to better understand the market there and keep an eye out for future opportunities.

I’ve had really good interactions with the company I’m with. They’ve had two of my duplexes for a couple of months now so I’m still new with them but they have a huge team and have been very helpful managing everything for me remotely including repairs. 

https://www.realsolutionsrenta...

I'm located in California, have a couple of properties in Columbus, and am using a credit union in New York for my refinancing.  It's probably nice to develop a relationship with someone local there you can meet up with but it's definitely not necessary.  Just wanted to mention it in case you wanted to look somewhere that's not local.