All Forum Posts by: Johnny Quilenderino

@Evan Polaski my cost per board will be a little cheaper. I will be at the mercy of the trades, I will not use a GC, but I will get three bids on each piece of the project (Electrical install, plumbing install, finish work). These will be one bed, one bath, with a small closet, and upstairs is a two and one. Window units for A/C and baseboard heaters. No furnaces for units the economics of the area just does not support it and will not support it in five years. 

I got quotes to get electrical, plumbing, Dominion power pecker head and meter installs to a total of combined number of 40k (material and labor). Then I have 35k in finished work materials it looks like and about 10k in permitting. 

I guess the real question is now, how much does finish work cost. I know there was a formula of (2.5 x material cost) + 10 percent of fluff to get rough estimate of a final buildout is that about the same or with the fires and lumber cost skyrocketing etc. it is a little more expensive. Most of the house is framed internally, just missing things like the closets. 

@Ryan Poske this is in an economic opportunity area of Virginia, we do not put a high end or even middle of the road stuff in these units. Definitely accounted for thank you for the heads up. Five unit property, 4 - 1bed/1bath, one 2/1. Yes, each one will be separately metered for water and electricity. 

@Ryan Cleary is it even safe to say his name ... Haha.

@Ryan Cleary I will give them a call later on today. Thank you.

@Kevin Paulk framing for all the doors and exterior is fine. Might need some paint by the time we are done. It has the old tiling from 50's that last forever as long as you keep them painted. 

My team acquired a five unit in Suffolk, VA this past year and we are thinking of options of funding the rehab.

The windows and roof were finished in 2018. The house is over 100 years old. We watched the guy pull out 7 dumpsters full of debris and old building materials. When I walked through, the house no longer has any of the plumbing (galvanized steel) and none of the old wiring knob and tube, and actually is a blank canvas inside still would need to be built back from the studs to a five unit.

What am I missing?

1. Insulation

2. Plumbing (was plumbed for a three unit will expand to a five unit)

3. Electrical (was a three unit will need three breaker boxes installed and the pecker head moved)

4. Drywall, paint, etc.

5. Floor finishings

6. Water heaters

7. Ovens

8. Refrigerators

9. Structural and mechanical permits 

10. A/Cs

My cash is locked up in other deals. I am estimating about 100k to fully finish this, with an ARV of 300k or higher, that I could refinance.

What are some creative ways to fund this, I have been doing buy and holds, and now looks like I got my first BRRR. Thanks in advance!

I sold from Boston Ma and picked up a 6 unit in Norfolk

Have you thought about a 1031 tax exchange? Duplex or something else?

@Jacob O'Connor

5 comments

5 likes

5 conversations

2 posts a day (Instagram/FB)

One post a day on non-business page

One blog per week

Two you tube videos

Keep that up for six months then move to webinars instead of blogging and videos

@Darren Fryson

Most leases run until they are over ie one year or two years regardless of ownership. Check your state landlord tenant laws.

Insurance will not cover if they stop paying, it is on you, six months buffer PITI before you start playing real ball here!

@Darren Fryson ask for verified back statements with the monthly deposits, a T-12, also talk the PM, talk to the utilities guy etc. Verify everything.

Then have a conversation with the owner if you can. Find out the reason of selling.