All Forum Posts by: Jason Morford

Thanks. I know about the order I want to do things except the kitchen. Electric is 200 water is copper pipes. Bathrooms were recently remolded but still need basic things like paint and flooring. All mechanicals passed inspection. 

So this was just a horder house, which ruined the carpets and the walls were outdated with old paper.  Literally rooms full of maniquins.  So many that on one tour the realtor was asked if it was a haunted house.  The of course the kitchen looked REAL BAD!!!  We are not moving any water wires, gas lines, etc.  Unless we drop a wall, I don't actually think anything will need permits.  I will double check though with code enforcement before any work is even quoted.  

I have a house I am thinking about buying to BRRRR (Buy, rehab, refinance, reinvest because I want this to by my home and then I will take the remaining money and reinvest to do other properties.) So I have a few questions before I go and look at the property. The outside of the house is perfect. and it looks as if they started the rehab and then stopped. The outside has a new roof and siding and doesn't need any landscaping. The chimneys are in good shape too outdoors. It has almost 3200 sq ft of space.
I am going to get it inspected and have a contractor look at it, but other than the kitchen, it looks all cosmetic.So any advice would be appreciated but below are my thoughts.

We would plan on putting luxury laminate flooring everywhere. I can do that myself, but it is cheap to hire it done. My guess is 2000 sq ft at $2 for the flooring and $2 to install or $8k for the entire house, but I think I can reduce that by a few thousand. (Kitchen flooring in the cost of the kitchen).

Kitchen would be a full remodel, new appliances, cabinets, counters, fixtures, luxury laminate flooring, and a new coat of paint and backsplash, etc. It would be a complete redesign. How much should I budget for the kitchen? I was thinking 15k. This would be about 7% of the AVR and I would do some work myself. Do you have any suggestions on the cost of the kitchen. 

It has forced air heat, but no AC with my estimated cost of $5k 

Paint, fixtures, etc throughout $5k. 

There is a fireplace I want to update in the back of the great room. How much would that normally cost?If we can take out a wall in the kitchen to open it up, how much does that usually cost with inspections for it and everything? My guess is we will spend another $10k in going over budget in areas or doing things that we just want to do such as updating the fireplace or taking out a wall in the kitchen.

Do these numbers sound right? Am I missing something? I tried to go high. That means on the low end about a 40k but up to 50k remodel. "Similar" homes, smaller, but newly remodeled are selling for $250-$300, $350k new. So even if it is on the low end it would increase the value about 60% of what I would have paid for it initially and the total investment (house plus repairs at 40k) still have 20% equity to start. I don't plan on making money, but to be able to take out what I put in with instant equity seems like a win win. If I choose to rent it, it looks like the avg rent in the area for lesser homes would be $2000/ month so my cashflow at that number would be at least $2-300 a month.

The purchases would be seperate. Move in the multifamily home until our home designed how she wants it is ready such as flooring, cabinets etc then move in her "dream" home. If we move, which will be hundreds of miles away we would either buy an available house or rent for a year while we look and whatnot. 

I have had to move around a lot in my early life and I am turning 40 next year and will be settling down in 1 location.  I have saved up about $250,000 useable cash for investing without loans or anything. I saved that much because since I graduated college I have made a house payment in an investment account.  I have no properties.  So this is what I was thinking:

Buy a "turn-key" or move in, or almost ready to move in multi-family home with FHA financings if possible, if not that would be okay and move in there for a year since I will need a place to move and I want to be picky about the house I will be moving into...okay my wife does.

During that year look for my permanent house that would "BRRRR" and do all of the process except the rent part and move there after the year. This would give me time to research, learn, and pick how we want the house with all its aesthetics.

Then refinance that and BRRRR after that with money gotten back from my own home.

Any ideas or suggestions?