All Forum Posts by: Ilya Z.

@NIcholas Hamel it seems to me that a lot of the MLS properties that might be good deals would require significant rehab. I am assuming you are not going to do all the work yourself. In which case, do you have a GC/crew lined up who are (i) likely to be available to do the work in the near future, and (ii) would be willing to visit a property before you decide on an offer, to estimate rehab costs? I am a relative REI newbie (in the middle of our first flip rehab now) so I don't have much experience estimating rehab costs but I do have a sense that it's very easy to underestimate. So to me it seems that having someone lines up who can do not just (i) but also (ii) is critical to finding good deals on MLS (and off, too) and figuring out what the right offer would be.

We're in the middle of our rehab project. The GC, who's doing some of the work with his crew and outsourcing the rest, gave us labor+material prices for individual parts of the project (roof, kitchen, baths, deck etc) but not the material costs separately. We're happy with what he's done so far and for the items he completed he didn't go over the numbers he'd given us.

Now I think I want to get some of the materials myself to reduce cost. For example, we just picked up a bunch of free tile a local shop threw away and it should be enough for the whole kitchen backsplash. However, when I asked him to provide me with material allowances for each item, he didn't and instead said that we're welcome to buy any materials we want but in this case he'll charge us $X per man per hour for labor. Since the goal is to reduce the cost, this response is not particularly helpful.

I realize that by giving us one dollar amount, he's trying to avoid asking us for more money for labor in case it takes him longer to complete something. So there's some padding there for him. Plus there is a project management fee there somewhere too, which is fine. So far, there were some delays in starting some of the work but once he started, he finished on schedule. Which is understandable since the fixed price forces him to work fast.

So how can I negotiate this with him? If he doesn't give me his material $s, I wont know if I am actually saving money when I am buying, let alone the potential runaway cost of labor if we pay him by the hour. This is a rehab with a relatively low profit margin so we're getting everything as basic as we can. Obviously free tile is as cheap as it can get but other stuff is easy to buy too expensive. So on option is to go back to the original arrangement on everything except for items for which I know I can get cheap materials (like the free tile). But then I still need to renegotiate the numbers on those with him. How should I do it? Thx

Just talked to my local Lowe's. Their prodesk is closed until Monday, but they also suggested opening a business cc that has a cash reward. Not sure I can get one for the LLC I use for REI but if I can that might be some additional savings.

Originally posted by @Frank Geiger:

Totally agree; don't rehab a whole house and then put old, used appliances in. The new home owner will notice. I always go for stainless steel; it's the same price and looks much better. Lowes and HD have the packages you can buy for a few thousand bucks. Totally worth it and easy to estimate rehab costs with the appliance numbers right there.

The trick here is to find the right balance of cost and appearance/functionality, especially since our profit won't be very big on this property even in the best of scenarios. I actually love reusing things rather than buying new, both from the cost and "don't send good things to the landfill" perspectives, but in this case used appliances would not work.

Originally posted by @Daria B.:

I know you said no to Lowe’s/Home Depot but.....

Lowe’s Quote Support Program or Home Depot also has a contractor program. With Lowe’s you don’t need to be a contractor to get their quote. I have no idea about HD.

 I went through this not too long ago with my rental I was rehabbing. Feb-2019 to be exact. I was buying all new stainless appliances that although a rental, could also serve as good quality for a flip (same mid-grade).

I did a lot of searching and found I kept coming back to looking at the local Lowe’s/Home Depot and ultimately choosing Lowe’s for their QSP price I could not have gotten a better deal. I started in Nov2018 in search of local and online vendors/deals.

Buying at a holiday time was also a benefit on top of the Lowe’s QSP pricing (anything over $1500) they gave me a very good discount. I had planned on using the 10% military discount but the QSP was far better. I ended up get the appliance and all other materials like light fixtures, bath fixtures, toilets, and other odds and ends at Lowe’s.

Another reason I am glad I chose local was the return policy and quickness of getting a replacement addressed in less time than the online vendors who either required the return in hand before shipping out another, or, still having to wait another week for the replacement. With Lowe’s and the items I purchased they were all in the area and had several stores to get inventory from.

Other people in the area speak of auction places and other local-local appliance stores only in that area. I was never successful at finding any of them.

Never heard of QSP so thanks for the pointer! When I searched for it on their website, I only found lowesforpros.com and the prices there were not any lower than regular, but I'll visit the local Lowe's and talk to them. I have way more HDs in my areas than Lowe's but I have gotten better deals from them in the past so it's worth a try. Also, it;s a great idea to include other stuff like lights for a possibly better incentive. 

Originally posted by @Derek Janssen:

In Phoenix, I found a local appliance dealer called Spencer’s who was great to work with. Here’s what I liked:

- I had the same salesperson throughout the entire process which involved rescheduling delivery twice due to tile not being done. 
- handled the entire transaction over the phone which Lowe’s would not do (they required me to sign something in person)

- comparable prices with better customer service

- emailed me the quotes and specs of all appliances 

- removed my old appliances for a reasonable fee

- I’m supporting local small business like myself not some CEOs multi million dollar bonus. 

Thanks Derek. I did try to find a small local business which I would totally support had their prices been competitive with Lowes/HD's. I think for projects like mine, the big stores might be the way to go since I am trying to minimize the cost. If I was rehabbing a mansion that required top-notch appliances, a small store might be competitive. But I might give it another try, maybe I'll get lucky.

We're rehabbing a flip which includes a complete remodeling of the kitchen. So in a few weeks will need a full set of appliances: fridge, dishwasher, electric stove and fan. The spread on the house won't be very big, and the potential buyer is likely going to be a first-time home buyer, so we're looking for something basic (preferably stainless, though, based on the overall design). Are there alternatives to HDepot/Lowes in the DC/Baltimore/Frederick area where I could find new appliances for cheaper? Don't want to buy online (ebay/amazon/etc) and prefer to avoid used stuff, although might got for floor items/open-box/etc.

Thx!

So will be looking for someone who can do the inspection. Any references will be much appreciated!

Good Day Everyone,
I our search for fix-n-flips, we looked at a house in Hagerstown, MD. It's a rancher built around 1950. One thing we forgot to ask the owner about during our visit is the type and condition of their septic system. Now we're trying to estimate how much of a risk it could be. The property looks otherwise very attractive but we're wondering if septic could be a deal-breaker. Questions:
1. Is there such a thing as a typical type of septic systems for houses in that area of that age?
2. How likely is it that the system is still the original? If so, should we then plan to replace/upgrade it? How much would such a job cost?
3. Does it matter how often it was pumped over the years? Would it make sense to ask them for any record of that, similar to how one asks for repair records when buying a used car?
4. If we ask the owners to get it pumped and inspected, how much would that cost?
5. Anything else septic-related we should think of before putting an offer in?
Thank you!

Thanks @Lore Postman. I like the garage sale idea! At least where I live, it's a lot easier to talk to folks at garage sales than by knocking on doors or by walking up to them on the street. :-)  Plus where I live (MD suburb of DC) it seems like everyone and their brother are now driving around looking for distressed properties.