All Forum Posts by: Kyle Gregg

@Tim G.

That's how i feel. If no permits needed, then why not? 

I see it from his perspective as well. He pitched himself as a man that gets things done like clockwork and likes to have full control of whats going on. If I'm in there tinkering around, it might cause some delays which his schedule. What if i am injured? Would he be liable for my injuries? 

I guess i am asking if this is a legal issue or not. If not, I am the owner and I am the one hiring him...

I am working a 203k loan right now and have a detailed scope of work put together. Currently, i am trying to massage the scope of work to keep within my budget. I had to remove things such as exposing brick walls. 

My GC has stated that since he is the one pulling permits, i wont be allowed to do anything to the house since he is liable for anything that happens on-site. 

I want to be able to expose brick myself during the demo phase instead of after the 203k is closed out. The amount of debris from this will be a headache to clean up post-rehab. 

Is the GC correct? Will i, the owner, not be able to perform brute labor to expose brick walls? 

@J Scott

 Have you ever heard of inspectors requiring a drain system?  

@Marcela Correa

Thank you for your input. The GC specialize in full gut rehabs with underpinning basements...and at that point, it would be stupid not to install a drain system. Unfortunately, i am not underpinning so I am hesitant to add on this extra cost. 

I will have to ask around!

I am working with a GC to put together a scope of work and he mentions that he usually installs a drain tile system in all his rehabs. The house currently does not have a basement drainage system but it looks to be very solid. I see no previous signs of water entry. Is it required? Is it a good idea to install one? ($2900 quote).

This is a rowhome in patterson park, baltimore city maryland. 

Thanks for any input. 

Talk to your 203k broker. They should have contacts to approved, licensed, general contractors that they have dealt with in the past. Using a GC that is familiar with the 203k process will make things a lot smoother. 

Also, depending on the amount of rehab required (35K+), you will NEED a HUD consultant. He will do initial inspections and inspections throughout the rehab process to make sure everything is going as planned.

Once you have these two people, have them both come to your property at the same time to put together an estimate. Having both of them there will make sure everything is covered in the estimate.  It will help to write down what you want done to the property to help guide the GC.

A GC estimate is usually free but the HUD consultant will charge an initial retainer fee ($400 or so).

This will be the best way to get started down your 203k path. I am currently working on a 203k myself and just submitted an offer on a potential property after doing what i mentioned above. 

Feel free to contact me if you have any questions! 

@Marc M.

I worked with @Nancy Roth for a short time and i can say that she is a wonderful person to work with! 

If you are serious about utilizing the 203k, i would recommend reaching out to a local lender that is experienced with the 203k process. They can get you pre-qualified to find out what your max budget could be. They can also recommend agents, approved contractors, and HUD consultants that they have worked with to get you started in the right direction.

The HUD consultant i work with wanted to add extra contingency due to the fact that the house we were looking at had a broken incoming water supply line. He wasn't able to see if the water heater or any of the plumbing fixtures worked. The house hasn't been rehabbed in 30-40 years so the condition of the plumbing, electrical, and mechanical behind walls were unknown. Also the house had some foundation issues.

So i would conclude that contingency would be based on how many items on their checklist that they were not able to inspect. More items = higher contingency. 

If i decided to purchase this property and started to dig into the walls and found asbestos wrapped ductwork, galvanized plumbing, and knob & tube wiring....i would be upset if i didnt have a contingency that accounted for potential problems.  

On the other hand, on a newer house that only needs cosmetic work...the contingency might be relatively low. 

You would want to look into the 203k. VA does not allow for renovations/rehabs.