All Forum Posts by: Bob Okenwa

@Adam Abdel-Hafez @Wilson Churchill @Curtis J.

Thanks for the insight guys. I don't plan on bringing in a whole crew. I just have a painter and cabinet guy in mind. I'll definitely try to lean on the expertise and connections a GC has, but at the same time I won't allow him to take me for a ride as I have a pretty decent handle on what should cost what. I want to be respectful of how a GC works and how he gets things done without being overbearing and micromanaging. I've left my last 2 jobs because of this lol. But I really love the feedback. Gives me more insight into the mind of a contractor.

@John Weidner I was thinking the same thing. I would (like every investor) love to keep the costs under control and figure that bringing in cheaper subs will keeps the GC's honest unless the GC is willing to renegotiate his terms somewhat for me to keep from bringing in outside subs.

@Angel Dejesus Thanks for sharing. I by no means want to be overbearing and take over the GC's job, but I'm just trying to think ahead before getting a property under contract and being surprised if a GC has a huge issue with my proposed method.

@Curtis J. Do you think I'd be able to negotiate the price down on the GC if I know I can get a better rate through a sub? Also I plan to use my own finish materials but the GC can get his own building materials. Would that be an issue too?

@J Scott

Thanks for the advice. I know some guys would want to control the whole show, but I was wondering if this would be a way for me to negotiate the GC's estimate down a bit if I have guys who can do it for cheaper that what he quoted. By no means would I want to create a schedule conflict, but a dollar saved is a dollar earned.

Hi everyone,

I was wondering how many of you exclusively use GC's for everything on a rehab project or use GC's for some of the work and sub-out some of the work yourself? For instance, I have a few connection on my own such as a concrete guy and a painter who I think would be cheaper than using the GC's guys for.  Any opinions would be appreciated.

@Engelo Rumora

Thanks for the insight. Much appreciated. How much do you spend on an average deal out there in terms of rehab?

Hi @Neal Badru. You sound like you have a solid plan in place. Just make sure you're cashflow numbers can be hit before purchasing anything. For duplexes-fourplexes in this city at that price, you're going to be in D class neighborhoods where rents on 2 bedrooms go for about $500/month. You're also going to want to account for property management (8%-10%) monthly even if you don't plan to use them at the outset. You also gotta factor in water/sewer/trash, insurance, vacancy, CapEx, maintenance, and property taxes to make sure you're hitting that $500 a month cashflow. If you have any target properties I'd be glad to help you run the numbers. Always good to see another Arizonan get started in REI. Best of luck.

@Rob Drum

I feel ya man. You want to make the house a shining jewel, but don't want to overdo it for your area. If the comps don't justify the money, I suppose you have to trust the numbers and flip to them and what makes the most sense return-wise.

@Engelo Rumora

I've looked into the Midwest market and it looks to be quite profitable. Are there any specific areas in OH that are doing better than others that you focus on or do you cover the entire state? Also, what is your typical rehab like in terms of project scope and cost? Total rehabs? mainly cosmetic? Basement redesign? etc. I've seen some great numbers in your area from my own research and other investors here. Thx.

@Account Closed

Nothing wrong with driving for dollars. Any type of mail campaign is going to take more than 1 round to be successful it most cases, but having a list of specifically distressed possible sellers can't hurt either.