All Forum Posts by: Luc Boiron

How you structure payments can vary. I'll tell you how I structure payments with my current contractor, but I will not say that this is the best way, simply that it has worked for me so far.

I pay the contractor for what they quote for labour, but reimburse them for materials so the materials are not included in the quote. I make sure I pay them back for materials as soon as they provide me a receipt and I know that is it on site, I don't want them holding those costs long at all.

For labour, I pay my contractor a small deposit (around 10% of the job) when they start. I then pay for the work they have completed, but hold back 10%. So if they have finished $10k worth of work, I will have paid them $9k. They get the last 10% after we do a final walkthrough/inspection where I point out the last minor things for them to fix. Once those last things are 100% done, they get 100% of the money after signing a waiver of liens.

Again, not saying this is the right way to do it, but it works for me and works for the contractor I have.

Where is the water coming in from? Did too much water get in the window well from the rain and it flowed over the window sill? This might be because the window well was never properly installed and run into the weeping tile around the footings, or it could be that it have gotten a little clogged over the years with dirt. It's a lot of work to dig that out so definitely not a first choice.

If the ground slopes towards the window well, it's possible that in heavy rain the water flows towards the window well and then gets in to it. If that's the case, you would want to grade the earth around it to make sure the water runs away from it.

One of the main reasons I see for water to get into basements if grading. Make sure the earth slopes away from this area. Also, make sure downspouts run at least 4' away from your house, so the water doesn't sit against the foundation.

There are many types of window wells, and there may be some that work for you. For example, there is the bubble kind:

http://www.homedepot.com/p/Shape-Products-42-in-x-...

That might work in your case. Instead of screwing it into the brick where you are blocking off access to the egress, it could be mounted with a hinge at the top so it flips up, or simply lean a brick against it so it can be pushed away easily. This would keep rain out of the window well.

So really, there are many solutions, but they will depend on how the rain is getting in to the house and window well, and how the window and well are set up. Some pictures would help.

Good luck!

Looks great! I Iike the different backsplash tiles in front of the hood fan. I'll have to consider doing that on my next flip.

That's awesome @Katherine Rossell!

You really seem to have nailed down this house hacking! Most people who house hack buy a duplex or triplex, live in it, and then sell it before buying the next one. That's nice, but what you're doing is exactly what should be done! Live in a house hack, then move out and get your next FHA loan house hack while renting the previous one. Amazing!

Keep it up!

Usually for flips you can offer 65-70% of the ARV less repair costs.

So take 65-70% of the ARV. That leaves you with $149,500 to 171,500. Subtract reno costs, and you are at $146,500 - 168,500.

Typically, if you can pay your reno and have 30-35% of the ARV left, even with all costs you have room for a sizeable profit.

Just make sure your assumptions are correct. If it can sell for $245,000 with only $3,000 in renovations needed to get it there, why is it only listed at $142,000?

Good luck!

@Ryan Martin I think we were chatting real estate right before the bar exam!

I'll private message you - we should meet up for a coffee. It's great to see people I already know on these forums!

@Paul Gill @Phil Gardner

We're doing so much work to the rest of the house that we decided to paint out all the trim. It's just the basement, which is a bonus space, and the primary spaces will likely be the ones to sell the house.

I don't have good pictures yet (and we're about 3 weeks from listing), but here are some quick shots I took of the painted trim. I think it makes the space a lot brighter and looks less dated, as much as I don't like the stucco.

Message me if you want to come see the house! I'd be happy to show you guys. We're almost at the end on this one. Landscaping happening this week, floors and kitchen going in this week. Almost done. Just might be delayed by the time it takes to order the new garage door, as it's a 15' wide door and not a 16' that is more standard.

@Ryan Perkins If you can add a bathroom for very little, it can be worth it. What you were saying about increasing value by 60-70% of your investment actually depends on the cost of your renovation. Try speaking to your realtor and asking how much they think the value would be increased by adding a bathroom. Also consider whether you would do a full or half bath. If the basement can be used as a living space, it could be nice to have a bathroom down there.

If the agent says you can add, for example, $5,000 in value for a 1/2 bath and $8,000 in vale for a full bath, you then need to speak to some contractors and try to get pricing. Often, a half bath can be added, with new walls, for $2,000-$3,000. It could also be a lot less if you DIY part of it. Spending $2,000 to increase the value by $5,000 would be worth it, IMO. However, since you are turning it into a rental, you need to see if that will get you any more rent.

Try to avoid spending too much money in the yard. Simply throwing down some topsoil with grass seed and watering it can be worth it. Landscaping gets expensive quickly though, and you usually won't see too much return on it, so keep it reasonable.

As for the basement, I would add the flooring and make that area finished. I would recommend vinyl plank flooring like Allure from HD. It looks really great and is much better with basements than carpets.

Welcome @Quang Nguyen

Where are you doing your BBA?

Amazing. Love the detail in your post. Love the finishes too.

Taking care of the details is so important, it can really separate a successful flip from a failure. I find the same thing for picking finishes. Two flippers could spend the same amount of money on the same property, with one increasing the value significantly and one not. Finishes need to be what buyers want, and details matter. Sometime people will tell me that it doesn't matter if the electrical plug isn't straight, that buyers won't notice. Wherever I can though, I fix things like that. I find taking care of the details separates a good renovation from a cheap flip, and helps get a better price for the property.

Congrats on your success!