All Forum Posts by: Account Closed

@Darius Ogloza lol “Great Wall”. I just lumped the partition wall with the price for replacing drywall throughout the property. I’m not even sure, I think the original walls are plaster.

Oh yeah...and kitchen and bathroom cabinetry and countertops: $14,200

@Sean McCluskey

Total roof replacement plus some reframing to correct improper roof design. $13500

Plumbing: water heater, softener all fixtures for kitchens and bathroom x 2. $15000

Masonry: fix crappy footings in crawlspace. $3000

HVAC: new furnace, ductwork as nec, AC. $11500

Vinyl siding: $10000

Gutters/downspouts: $1100

Electrical: Remove supply and install new wiring, boxes switches: $12500

Doors, interior and exterior and hole will need to be cut for a new window : $5500

Partition wall/ drywall and framing: $14000

Flooring: fix subfloor as necessary, install LVP

$6800

Oak trim/ finish carpentry: $10000

Demo/ framing/ general construction: $11000

Lighting: $1500

Appliances: $7000

Then some miscellaneous, profit and overhead and contractor management fee comes to: $40000

Yep,@Tim Herman and @David Robertson that is the dilemma. The thing is BP is always like "you gotta jump in the game" "you gotta get the ball rolling" so even though the rehab part of this deal scares the begeebers outta me, there are no duplexes in my area that would list at even close to $270. Even if they did, a cash buyer with no contingencies would come along and scoop it up (this has been my experience over the past year). When it is done it will have new everything and I will not have to worry about CapEx for years and the vacancy rate in Madison is like 0%. So I have this dog of a property that no one else wants to even go near and I feel like this is my way into the game. It's scary though!

@David Robertson  I haven't closed on the house yet or signed a contract with the contractor.  I will go back and figure out how to pare things down so that I can get the costs under control.  There will be a 3-bed unit and a 1-bed unit and I will be occupying the one bed unit.  I will rent out the other unit for $1500

I also got a bid from another contractor and even though his estimate was higher I felt he had a more reliable and better equipped team to deal with the job.  So I went with the outfit that basically had more overhead...which leads to higher costs

Answer to the question why and how...I had a friend/mentor who was in REI and also had done some flipping who estimated that if he and his crew did the rehab it would be under 100k. It is pretty close to a full gut rehab. There are two units where the roof of one is gabled and the roof of the other is flat. There are issues so the roof design needs to be altered. Also there will be a couple modifications to the floor plans of the units

I've always living in college towns and find that they are very recession proof and offer a very low vacancy rate so the area interests me in general.  Not sure about renting specifically to college kids.  I think that's kind of a speciality.

Calling out to all investors...How many of you thought you had at least a base hit on your first property and then, in the end it turned out to bite you (financially speaking). I am in the process of buying a foreclosed duplex in a good location where the market is very robust. I thought that would justify paying a little more for it (122k). I ran all the number six ways to sunday and thought I would do ok...because I thought rehab costs would be less than 100k. Now they keep ballooning, past 100k, past 150k. I have not closed yet and I’m starting to think I should bail some how...I only have a 3.5% down payment but it’s hard to figure out how this is going to cash flow when the complete rehab is done. Any advice??? I don’t want my first deal to kill my momentum.

@Soniel Estime hey there, I’ve said before that I loved your story of trials and triumph.  Wondering if you can share more stats on the property like square footage, unit size and what your cash flow was like.  I’m trying to do a 203k right now and I haven’t yet closed.  Trying to get the contractor to put the bid in the format that will be acceptable to the lender is like trying to herd cats.  But one thing that is freaking me out is the consultant’s accounting of the work that needs to be done is considerably higher than the contractor.  My pretty good deal is slipping away before my eyes.