All Forum Posts by: Justin Fox

@Sisto Averno

You can move forward as soon as you want.  He's already been confrontational and said he won't do the work until you pay him more money (more money than you have already paid him to do the work that is unfinished).  Print up your conversation, make sure your actions are within your rights in the contract (if there is one) and move on.  Once you or someone else finishes the work he left undone, he's SOL.  Make sure you report him on BBB, local Facebook groups and etc, blast that a-hole.

He could try to get a lien put on the property but if what you are saying here is true then it probably wouldn't go anywhere.

I've refused to pay many, many people and companies until work is done.  Hell I've stiffed johnny on the spot because they never came to suck out the turds.  If you're a poor contractor/sub/company then you don't get paid, simple as that.

Next time, have all this spelled out in a contract like @Bob Razler suggested.

For some other examples:

AC Installation, they get 1/2 when the inside unit, registers, ducts and wiring are roughed in.  They get the other 1/2 when the outside unit is installed, system is charged, thermostat installed and is cooling.

Plumbing, they get 1/3 when the plumbing is roughed in, 1/3 when it's topped out and the final 1/3 when finish work is completed.

My contractor doesn't even get his first draw until the house is up and felt/doors/windows/siding are installed.  Another after electrical, plumbing, AC, insulation are installed/roughed-in and only if they pass the engineering inspection(s), and etc.

For a painting job (if I hired that out) I would only pay for supplies up front and would only reimburse the painter for those supplies upon receiving a receipt (I've painted many homes and remodeled, I know what they would need).  Then I'd pay him the labor upon completion (to my satisfaction).

Get all your quotes from the subs via the contractor upfront and in writing, and hold them accountable to that quote.  Save them for next time too for haggle purposes.  I've gotten same dollar labor costs 3 years in a row on my builds.

Hopefully telling him you're moving on will prompt him to get his act together, or you can actually move on and get this finished quickly.

@Roupnel Pierre

Like said previously just go around and get the different banks' fees, seasoning periods, how much they'll cash out, minimum loan amounts and etc.  I remember when I closed on my home the local branch had a origination fee based on a % of the purchase but the Amarillo branch had a flat rate origination that was much, much cheaper.   Guess who we went with?  Lol.

It's just like any other niche market or business model and a different type of income stream.  If you can make lots of money getting someone else to talk about what made you successful in real estate in seminars around the country, why wouldn't you?  Likewise for book sells and etc.

If you don't want to rent to people with evictions then put that in your criteria up front when people inquire about your property.

I'm not in the business of being a counselor.  Whether or not you are is for you to decide.

@Jesse Scott

The only things I would do, if anything are:

1. Paint the cabinets with white oil-base, with nickel hardware (doorcorner.com).  Use bright-white from sherwin williams so you can take unused cans back.  Sand and prime the doors and bases with Zinsser 1-2-3.  You can get a sprayer from harbor freight for < $200 and might be able to squeeze out just one gallon with a 211 tip (the sprayer comes with a 517 (exterior)).  Maybe a white subway tile back splash with a grey grout closely matching the floor.  The counters are going to clash no matter what you do.  You can install porcelain tile counters with a wood bullnose super cheap as well.

2. Sink faucet.

3. Appliances.  Facebook specials.

But if you can get market rent as it is and will still get the same market rent after the reno, don't bother for now.

@Yingchun Li

If you have the ability to, I would stain/seal or just seal the concrete.  Now you may have glue stains and etc, but if not I would definitely go that route.  It's the cheapest and easiest diy.

Otherwise I would definitely go with a lighter, neutral tile.  You can get it fairly cheap and cleaning during turnover is easy.  I just pressure wash the grout in the entry ways and high traffic areas and it looks like new.  Save a bag of the grout in the attic in case of chips due to wear or dog nails.  

I would never allow a cat in any of my homes.  For one, they're gross.  Climbing all over the counters and purr-rubbing their *** on the dinner plates, yuck.  Second and most important, I'm severely allergic to cats and since I'm the owner/operator it could pose serious health risks.

If you end up renting to the Beagle people, you need to charge a ~$250 pet fee and an additional $20/25 pet rent per month.  Deep cleaning a rental after pets can be expensive especially taking into consideration yard, door, and smell damage.

I would use porcelain in the bathrooms/kitchen/mud rooms for sure and make sure to get a more textured tile for the bathrooms as tile can be very slippery with wet feet.  In the rest of the house you could use either really, but would personally use porcelain as it absorbs less water (nearly water proof).

Good luck!

I don't track mileage at all anymore (quit recently) due to most (if not all) of my driving being considered commuting (since I don't opt for the home office deduction).  After excluding commuting miles, the allowable miles (per IRS) I drive once every 2-3 years from the rental to another destination and back just isn't worth keeping track of.

Do the same restrictions apply when driving to and from a home and construction site?  I'm thinking yes, but not sure as construction is more active and not simply picking up the rent.  If I drive to a store from home to pick up fixtures/etc for the new construction and then back home, is that considered commuting as well?

Also, can you take the home office deduction some years and not others?  I'm sure we would meet the requirements this year, but if we don't build/buy/renovate next year then we wouldn't for 2018.

Thanks

@G. Brian Davis yep you read that right.

My first thought would not be sympathy.  It's not okay... so yeah, really.  No, you kick his *** because he's in your house, you don't worry about legalities or consequences because no one will care.  That probably holds true whether or not the guy is homeless.

@Chris Eaker

We built them with a contractor but he worked with us so we could do a majority of the finish work (painting interior and exterior, floors, counter tops, back splash and hardware installation).

i clean the outside units when they get all grassy.  I change the air filter every month when I pick up the check.  If something goes out, I slap a window unit in the master and make a request online at AHS, technician comes out the next day, they order parts and usually fix it within a few days.  Had a 12 year old compressor just go out : (.  

I change the filter myself every month so I'm not too concerned about the inside coil being dirty.

The HVACs in my two new construction rentals have 10 year warranty on parts and labor.