All Forum Posts by: Cory Iannacone

Jody Schnurrenberger Dennis Del top lessons learned: 1) a good contractor is extremely valuable. I️ once heard someone say pick 2 out of 3: 1) price, 2) work quality and 3) timeliness. This contractor on this second project was referred through my realtor. Small business and he had 4/5 guys working for him. I️ did interview contractors through craigslist , which is what I️ used on my first rehab, but I️ think a good referral is the way to go. I️ had to fire my contractor from my first project because he just bailed on the project and I️ kept trying to work with him. It really drugged the project out longer than necessary. First rehab was about 6/7 months because of issues with my contractor. This second project was knocked out in a month, and I️ ended up renting it out that same week. And delay would have put me into the holiday season, which I️ think would have delayed renting the place out. 2) I️ used basically all the same materials from 1st project, so I️ wasn’t reinventing the wheel. When I ordered material for second project, I️ just went into HD with sku #s and quantity and the order was done. Saved time shopping materials. 3) it was very helpful to be only 15 mins away from property on second project. I️ visited the second project every day while construction was happening. The first project was 1.5 hours away. I️ couldn’t visit as often, which I️ believe contributed to the delay for project 1. 4) one of my bigger screw ups for project 2 was I️ didn’t measure the door width before purchasing appliances. Got an awesome deal on appliances, but they wouldn’t fit on delivery day so they all had to be sent back. I️ spent that day at Lowe’s coordinating the return and getting new appliances ASAP because this was at the end of completion of project. 5) if you’re rehabbing, I️ recommend ordering carpet measurement and material very early—as soon as you closed. Takes a couple weeks to install, unless you do 72 hr carpet. But 72 hour Carpet was not as good of material and cost more money. 6) because this lease started nov 1, I️ asked for an 18 month lease so that I️ would be in prime rental season (spring ) when it expired—April 30. Helps me get a new tenant in if they done renew in 18 months. If they renew, I’ll ask for a 1 year lease. Renting during holiday season is not optimal. 7) always buy new tenant gift card to local nice restaurants for move in gift. Start relationship on right foot to show you care. They said, “wow. You are a great landlord. You know how to treat a tenant.” I’m sure there’s more. But that’s what initially comes to mind.

I️ have a broker you can use. PM me. I️ looked at State Farm but it wasn’t as good as what I️ got through my broker

@Victor Steffen It truly depends on what area of Harrisburg you are looking at.  There are a number of areas that have been revitalized over the last 10 years.  Others remain very depressed.  The revitalized areas are more expensive to purchase, but also draw good tenants--young professionals.  The depressed areas draw the opposite.  They may have much better cash flow, but they also have higher turnover, more issues with property damage/repairs, etc.  

Here's a duplex I just purchased in Old Uptown Historic District last month and just finished rehabbing.  A lot of money was spent revitalizing this area over the past decade. 

https://www.biggerpockets.com/forums/223-biggerpoc...

Thanks @LaShelle Stewart Here are my rough numbers:

Interior ($6,000.00), includes:

- paint

- electrical (replace all outlets/switches, fixtures, etc)

- backsplash

- plumbing (replace toilet, faucets, etc)

- repair damaged doors and carpentry

Exterior Paint ($4,000.00)

13 Windows Replaced ($4,000)

Carpentry (wood repair)  - $2,000.00

Install additional bath $4,000 labor

Install vinyl plank flooring ($1,000.00)

Repointing $2,800

Re-pour concrete pathway - $2,600

Keep in mind, this is the amount I am out of pocket. I financed materials through no interest deals, which I will pay off within 2 years.  This includes:

Appliances - $1,700.00

Granite Counter - $1,300

Materials - $5,000 

@Brenton Way self managing for now.  The whole property has been updated (so hopefully no true maintenance issues and there’s not much to do assuming I get a good tenant). But I budgeted for PM when running numbers.

@Cliff F. and @Chris Jensen - I used a conventional loan.  However, I did end up going with a 10/1 Arm (through portfolio lending) which allowed me to put down only 20% instead of the 25% required by Fannie Mae and Freddie Mac standards.  

@Chris Jensen - I hired a contractor for all the work.  Local guy with a handful of workers.  Gave me a great price and was one hell of a worker.  As far as my experience goes, this is only my second rehab.  My first one took me about 7 months.  This one I was able to knock out in a month because I learned a lot from my last one. I would say no major problems with this one.  Largest challenge was the amount of time spent going to Home Depot to exchange materials and pick up new ones. Trying to become more efficient.  

@Brenton Way So do I.  It's nicer than my kitchen.

@Brenton Way I should be in the right range, just on the high side (But, I consider mine to be on the nicer end).  First property is in Catonsville, Maryland (suburbs of Baltimore).  I rehabbed that one too and got top dollar for rent and awesome tenants.  Here's the kitchen from that one.

@Brenton Way Old Uptown Historic District.  It's the area that has seen a revitalization over the past 10 years.  There is a ton of space--the tenant is basically getting a whole house.

@Jody Schnurrenberger that was my thought process in adding a second bathroom. Now each floor has a very large bedroom and it's own bathroom. I thought it would help increase the rent and getting roommates to split the cost. Cost of adding a second bath was about $5,000. Assuming that helps me get an additIonal $100 / month in rent, that would be a 24% ROI.