All Forum Posts by: Jim Adrian

Demo and replace for sure.  Don't waste time painting it, maintenance issue later.  I would look at turning it into a gas fire place with crush glass.   Fireplace looks off center of the room.  Look at a floating hearth that plays with the rectilinear look.   Here are some links for design inspiration.

https://goo.gl/images/ZGHjiP

https://goo.gl/images/RKaBnq

https://goo.gl/images/pHqeyJ

It referes to time remaining.  Looks like I need to clarify this in the lease better.  

I tried to go month to month and it was scaring people away.  At the end of the day tenants will move out on you whether they met the lease period or not. Also look at adding fees for "Condition of Propert Assessment" section of your lease.  Now you have something pre-defined and agreed to before hand.  No one can say you are making things up in retaliation.

@Bernie Huckestein

You have several options.  Remember you are in a humid climate so you vapor barrier wants to be on the outside not the interior side. Based on 2012 IECC, zone 2 you will want R-13.  You will need to confirm with local building dept if you will need continuous insulation. 

1) remove siding and install sheathing with insulation adhered to it.  See link below.  This includes a weather barrier as well.  You can also add extra unfaced batt insulation in the studs as well.  Best R-value option.  You will have issues at windows and doors due to extra thickness.  Several mfrs have products like this. 

https://insulateyourbuild.com/

https://www.hunterpanels.com/product-over/wall-products-overview

https://www.buildgp.com/thermostat-radiant-barrier-osb

https://www.buildgp.com/denselement-barrier-system

2) remove siding and use spray foam. Great r-value and vapor barrier. Then add your sheathing and siding back on.

3) If you add sheathing, then you can us spray foam from the exterior side.  Because your walls are sealed you will need to use an open cell foam.  I would hire this out and would take 1 day to do.  They will remove a row of siding around the house, cut a 3" dia hole into the sheathing, fill up the wall, place a plug into the wall and reinstall the siding.  Nails will be patched up and you will have to paint all the spots.  In your case the siding will be off. I did this on my house like 8 years ago and it made world of differences.

@Laila Farally

You should use 8% for vacancy, 10% for property management.   Cap ex typically is around 10 but looks like you are doing some repairs. 

@Kay March

You should include an early termination clause in your lease.  Below is what I have. Its a no questions asked type of deal and they are already know ahead of time what it will cost them.  The formatting is a little off from cut and paste but there are 2 sections under early termination section.  Mitigation also comes from being able to keep or use the security deposit for rent, but this is the absolute last resort especially if there is damages done to the place.  You will need to coordinate wording of your lease. In the end this gives you 30 days to get this place re-rented at no cost to you.  You wont have to go in and make repairs/paint etc.

Coordinate this with your "Notice to Terminate Lease" section talking about 30 day notice etc.  Review your local landlord - tenant laws as well.

1. EARLY LEASE TERMINATION FEE (LIQUIDATED DAMAGES). In the event the Tenants desires to terminate the Lease early they may do so at the written approval from the Landlord.A thirty day (30) written notice is required and will be provided at the first (1st) day of the month. Rent will be paid through the end of the month.

1. Military Deployment Orders / PCS:

   The Servicemembers Civil Relief Act (SCRA)is a law that is intended to help protect the legal rights of members called to active duty. The protections under SCRA apply to active duty members of the regular forces, members of the National Guard when serving in an active duty status under federal orders, members of the reserve forces called to active duty and members of the Coast Guard serving on active duty in support of the armed forces. Tenant’s protection under SCRA begins on the date they enter active duty and generally terminates within 30 to 90 days after the date of discharge from active duty. If you terminate your lease under the SCRA, your lease will end 30 days after the first date on which the next monthly payment of rent is due.Tenant will provide written notice to the landlord and a copy of your Permanent Change of Stations (PCS) / Deployment Orders.Tenant received permanent change of station orders or deployment orders for a period of more than 90 days will be allow ending the lease process. The deposit will be processed according to Lease agreements. No additional penalty fee will be required.

2. Tenant Requested:

   The Tenant will provide written and proper notice as stated above.

1. 0-3 Months: There is a penalty fee of one (1) month’s rent.
2. 3-6 Months: There is a penalty fee of two (2) month’s rent.
3. 6-9 Months: There is a penalty fee of four (4) month’s rent.

Typically a permit is not required for demo work. Call your local building dept to find out what is required for your jurisdiction on new work.  Plumbing and electrical will most likely need a permit.   

You can have them sign the lease and take the security deposit prior to moving in. Rent can start on a separate date like Dec 1 and prorate the days till Nov 20.  Rent divided by 30 = prorated daily amount.  If they are not under lease, they can walk away from you. Simply spell out when lease starts,  residency starts and ends.   

You my friend really need to talk with a local architect and developer to get things in perspective.  I would hate to see you get upside down.  Its great you are asking questions but you still have a lot more to learn.

Not sure how you got to $10m figure, none the less follow along...  So $10m divided by 90k sf =  $111 per sq ft.  This is extremely low!   Commercial projects run in the $250 or more per sq ft price here in the Midwest for comparison.  I took a quick look at 2018 RS Means "Square Foot Costs" book (they have several different books)  for 95k sq ft hotel will run $180 per sf with an eifs façade.   The cost goes up from here and this is very plane jane.  

Look at all the different hotels brands and how each has its own unique identity.  If you build a marriot style hotel and only holiday inn is interested, now lobby finishes will not match corporate standards. 

For 135k in fees I have no idea what you are getting. This may not include the other discipline fees; civil, structural, mechanical, plumbing and electrical.   6% of $10m is $600k.    Understand what is being provided and not provided for the services you are requesting.  Proceed slowly and with great caution. I hope this helps you.

Best of luck!  

Gross vs net: I don't think it matters I would guess the difference between the 2 would be around 10%.  You already took the cost per sf deduction from new construction cost.  New construction would run in the $125 sf range.  Level of finish will dictate this number as well.

The cost per sf will only give you a generalized cost.  Its not the most accurate method but more of a checks and balance approach.  If you want a true and accurate cost estimate you will need to do an itemized breakdown. RS Means is a great source for cost estimating. 

Contractors are going to give you a loose number based on not having any Drawings to bid from.  Having Drawings is the best way to keep the contractor focused of what work is to be done.  If you are just telling him to do this and that over there during a walk-thru his number will be high and or he will hit you up for a change order later.   It would take an architect about 2 - 3 weeks to create drawings for you.  Then you can let contractors hard bid the project.

At $150k you are $46 per sf but I think this is low.  Sprinkler system will run you  around $10 a sq ft. Digging out the basement, arch/eng fees... I would say you are close to the $85 (or more) sf range when its a complete gut job. And you will need underpinning, if not plan for it now. You are only saving about 15 -20% of the building which is the structural frame,  some electrical, some plumbing, and some (little?) mechanical.  Not sure what you are doing with the roof and exterior walls. You also have demo removal cost.  That's my guestimate for you.  Good luck and keep us posted.