All Forum Posts by: Jon Lepel

I know there is no substitute for an actual walkthrough with a contractor and getting actual quotes but I watched a video(which was dated within the last 3 weeks)with Pace Morby, Jamil Damji, and Chris Keeley where they walked a rehab house. Jamil did a rough calculation of $60 per Sq/ft for main living areas and $30 per sq/ft for basement rehab. Chris had an actual quote from his contractor. In the end, they were about $1,000 from each other's numbers. So my question is where would you find this “per sf/ft” number? Is there a rule of thumb or averages that everyone uses? I get it might vary by region by maybe $5-$10 a sq/ft but is this reasonable for a quick “no look” estimate? I also get that light rehab vs. complete demo/gut are completely different animals. I'm just looking to evaluate some properties and as we know it has to be done pretty quick so trying to figure out what to "ballpark" something if possible. (This is my first flip if you can't tell, LOL) Does anyone in upstate NY(Albany/Saratoga) have any numbers to share or rules of thumb/software/spreadsheets from experience as of lately?

Quote from @Scott Mac:

Maybe instead of a full rebuild, have you thought about just a modernization of it's look.

I did a mockup of Hardie board, a porch with a trendy standing seam metal porch roof, new doors and windows, architectural shingles roof ridge vents, and stone cladding around the foundation.

The house looks small and it's only one story, have you thought about teaching yourself to put on the Hardie board and save same money.

But there is a lot of extra land, and the neighbors houses do look a lot bigger though.

Decisions, decisions.

Just my 2 cents.

Very interesting. Guess I just need to learn to be a little more creative. Didn’t think about that. I’m very handy so I could handle some of that. It’s on a slab so maybe pulling the whole thing forward, adding another room on the other side and a garage with upper storage off on side. 
if I’m going to move it maybe split the lot in 2. 

Can I ask what you used to create that mock-up? 

As you note and is my dilemma. The lot is so large and the house in a wierd spot and so small it has many options. Dialing into the most cost effective is the trick. 

Thank you for your input. 

Quote from @Scott Mac:

Maybe instead of a full rebuild, have you thought about just a modernization of it's look.

I did a mockup of Hardie board, a porch with a trendy standing seam metal porch roof, new doors and windows, architectural shingles roof ridge vents, and stone cladding around the foundation.

The house looks small and it's only one story, have you thought about teaching yourself to put on the Hardie board and save same money.

But there is a lot of extra land, and the neighbors houses do look a lot bigger though.

Decisions, decisions.

Just my 2 cents.

Very interesting. Guess I just need to learn to be a little more creative. Didn’t think about that. I’m very handy so I could handle some of that. It’s on a slab so maybe pulling the whole thing forward, adding another room on the other side and a garage with upper storage off on side. 
if I’m going to move it maybe split the lot in 2. 

Can I ask what you used to create that mock-up? 

As you note and is my dilemma. The lot is so large and the house in a wierd spot and so small it has many options. Dialing into the most cost effective is the trick. 

Thank you for your input. 

Picture of the property for ref. 

Hi all, 

I have 25+ years in the commercial lending, credit, and management space in small regional banks, and large national financial institutions. I currently work for a $10B Credit Union in Upstate, NY. I've been a commercial lender, commercial credit underwriter(in RE and C&I), risk manager, loss mitigation manager, and C-level manager in the commercial space my entire career. While I've walked, looked at, discussed, and analysed 1000's investment RE deals, it never really clicked to be an investor myself, until now. :) LOL, not sure why. 

I also have a small bookkeeping business on the side, am a Certified ProAdvisor through QuickBooks Online, and I work with any small business, in any industry anywhere in the country. 

I'm the proud father of four and married to my best friend. 

I'm actively looking for my first deal. I've set my short and long-term goals, and am starting to "build my bench" of trusted RE professionals that I have worked with, banked, or know from my many years in this space. Looking to connect with folks, network, partner, and build short-term cash flow, and long-term wealth. 

Open to local meet-ups, and messages. 

Nice to meet you all! 

Looking at a property in a residential area with a ton of upside, I think. The issue/or difficulty is the house on the property is usually sized for the lot, layout, and location. The lot is a .4 acre, corner lot, but the house is a 2 bed, 1 bath, 791 sqft house. It needs total studs-down construction, if not more. So my dilemma is whether it would it be more cost effective to demo the house entirely and build something more feasible for the area/size lot or fully renovate the home, and have the tiny home on this huge lot. Subdividing comes into my head, but the house is smack in the middle so demo would be the only option. Oh and did I mention that this would be my first deal? I’ve been playing with the calculators and looking at many scenarios. Buy/wholesale, Buy/reno/flip, buy/demo/build(duplex and hold) or Build(single-family and flip), etc. My inexperience has me analysis paralysis. Also finding comps, etc. on a new build in the area is also difficult. Does anyone have any advice on some key points to consider? Experience in a similar situation? Any thoughts or advice is welcome.

Consider looking for a bookkeeper. One that works with RE professionals. 1) YOU get a much cleaner, crisper look at all your numbers when you need them. To me this is important because if you are waiting around for a FYE or a tax return to know what is going on it’s probably too late. 2) It gives you more time and info to make decisions vs spending time at your kitchen table trying to reconcile or categorize expenses. Your time and energy are worth more in making decisions and evaluating new deals. 3) it is ALOT cheaper.  And while you may still need a CPA for tax prep and maybe advice it is a lot easier to have those discussions when you already have all the info at yours(and their) finger tips so that you can now have really meaningful conversations about strategies, tax planning, etc. 4) it’s usually a lot cheaper (did I mention that) to have a bookkeeper for the mundane stuff and you can spend the $$ on the CPA where their time is much more expensive and you now need less of it. Just my opinion.