All Forum Posts by: Matthew Paul

For someone with no experience doing a BRRR investment out of state EVERYTHING has to go right . You have to find a great deal , in a good area , find a great contractor who can get things done fast and priced right , you have to then find a great tenant who will pay the rent .

This is hard to do , even harder long distance '

As a contractor I can tell you this , rehabs almost always go over budget , and take longer than expected . There is always a delay on supplies , problems that come up , permits and inspections .etc .

Investing is NEVER a sure thing if it was everybody would be doing it .

3 Votes

Rates are going to do one of three things . They are going to go up , they are going to go down or they will stay the same . If you buy now and they go up you will be happy with your rate , if they go down , you refinance , if they stay the same nothing changes .

But odds are house prices wont go down . There is little inventory If you have a deal that works with todays rates go for it . Deals are hard to find in todays market .

1 Vote

Fort Worth, Texas

Quote from @Bob Stevens:

Quote from @Matthew Paul:

Quote from @Bob Stevens:

Quote from @Matthew Paul:

Quote from @Bob Stevens:

Quote from @Matthew Paul:

Quote from @Bob Stevens:

Quote from @Dan Frehmeyer:

I am currently rehabbing my primary at the moment with plans to rent out this fall. I am doing mostly cosmetic fixes to a SFH currently.

I am looking for thoughts on whether I should be proactive with replacing a 20yr+ old roof (missing shingles, multiple layers, looks terrible) and a 25yr+ old hvac. The water heater was replaced a few months ago.

I have access to very cheap money so my thought is to be proactive with those major expenses before I turn it into a rental. The property will still cash flow with the extra cost of these expenses. Additionally, the house will likely appraise very favorably after as well with a cash out refi a big possibility

Thoughts?

YES replace the roof, about 250- 275 a sq depending on pitch. YES replace the furnace, 1800ish, ASSUMING is about 1k- 1500 sq ft house

Boy things are cheap where you are . roof is $450 to $600 a sq depending on pitch here in Maryland

I know I paid $550 a sq ( 55 sq OUCH) when I lived in SC, total rip off, Material cost them about 100 bux a sq, 450 a sq profit for two days, Not a bad gig.

Materials are more like $185 a sq . Labor is not cheap , workers comp for roofers is crazy high , add in dump fees . Profit to the company after all that is around 20% . Not 450 a sq

Materials are not 190 a sq closer to 100. Also when you're a big roofing co, they buy in bulk, (Just like we do with our furnace's, HW tanks and flooring). I bet there under 100 a sq. 30-year Architectual. On a 50 sq roof to have 450 gross. so 22k in two days, they are making much more than 4k. the 20% you mentioned. Either way we get it done for 250ish, MAX,

All the best

I guess that laborers make minimum wage in your area , and the companies pay under the table and have no insurance . What do I know ? I must have been getting it wrong the last 40 years in construction . Sure the shingles run a bit over $100 a sq , but you need felt paper , drip edge , flashing , coil nails , misc supplies , delivery , disposal costs , labor , insurance , sales commissions , overhead , whats left is profit , and it it runs around 20% .

All the best to you .

SO, I had 3 guys for two days, let's say each are paid 200 per day, so 1200 bux. The GROSS was about 22k so how does that company only net 4kish ? Too many homeowners get ripped off daily.

3k for a furnace when the material is 800 and takes under 3 hours. We get them done for 1300.

All the best

I dont see how homeowners get ripped off daily ? The homeowner is in charge of the price . A contractor submits their quote and the homeowner either accepts it or rejects it . Contracting is a business , the salesman is there to sell a roof to the customer for the most he can get . Thats called salesmanship . If that salesman can show the customer the benefit of hiring his company , then he is doing his job . there is no reason to leave money on the table . As long as the contractor completes the work according to the agreement , there is no rip off .

As a contractor I am there to provide a service and maximize profit to the company .

No different than me buying a house and flipping it for a profit . The goal is to make as much as you can .

1 Vote

Quote from @Bob Stevens:

Quote from @Matthew Paul:

Quote from @Bob Stevens:

Quote from @Matthew Paul:

Quote from @Bob Stevens:

Quote from @Dan Frehmeyer:

I am currently rehabbing my primary at the moment with plans to rent out this fall. I am doing mostly cosmetic fixes to a SFH currently.

Thoughts?

YES replace the roof, about 250- 275 a sq depending on pitch. YES replace the furnace, 1800ish, ASSUMING is about 1k- 1500 sq ft house

Boy things are cheap where you are . roof is $450 to $600 a sq depending on pitch here in Maryland

I know I paid $550 a sq ( 55 sq OUCH) when I lived in SC, total rip off, Material cost them about 100 bux a sq, 450 a sq profit for two days, Not a bad gig.

Materials are more like $185 a sq . Labor is not cheap , workers comp for roofers is crazy high , add in dump fees . Profit to the company after all that is around 20% . Not 450 a sq

All the best

All the best to you .

0 Votes

Quote from @Bob Stevens:

Quote from @Matthew Paul:

Quote from @Bob Stevens:

Quote from @Dan Frehmeyer:

I am currently rehabbing my primary at the moment with plans to rent out this fall. I am doing mostly cosmetic fixes to a SFH currently.

Thoughts?

YES replace the roof, about 250- 275 a sq depending on pitch. YES replace the furnace, 1800ish, ASSUMING is about 1k- 1500 sq ft house

Boy things are cheap where you are . roof is $450 to $600 a sq depending on pitch here in Maryland

I know I paid $550 a sq ( 55 sq OUCH) when I lived in SC, total rip off, Material cost them about 100 bux a sq, 450 a sq profit for two days, Not a bad gig.

Materials are more like $185 a sq . Labor is not cheap , workers comp for roofers is crazy high , add in dump fees . Profit to the company after all that is around 20% . Not 450 a sq

1 Vote

Quote from @Bob Stevens:

Quote from @Dan Frehmeyer:

I am currently rehabbing my primary at the moment with plans to rent out this fall. I am doing mostly cosmetic fixes to a SFH currently.

Thoughts?

YES replace the roof, about 250- 275 a sq depending on pitch. YES replace the furnace, 1800ish, ASSUMING is about 1k- 1500 sq ft house

Boy things are cheap where you are . roof is $450 to $600 a sq depending on pitch here in Maryland

0 Votes

The contractor usually provides the customer with a contract

2 Votes

Montgomery, Alabama

Quote from @Dan Frehmeyer:

Quote from @Matthew Paul:

If you have shingles missing , thats probably from wind or storm damage . Have a roofer give you their opinion , and make a claim on insurance .

I have had multiple roofers say that insurance will replace the whole roof due to that damage. My concern is that I am putting myself in danger of being uninsurable moving forward if I go that route. Am I being unreasonably cautious?

Thats what insurance is for . i have 2 properties that had wind damage , Both were covered , both same insurance company and this was 4 years ago and rates didnt go up much at all . If you are not making claims all the time , you are fine .

DO NOT sign a contract with the roofer until its approved .

2 Votes

All Forum Posts by: Matthew Paul

Matthew Paul has started 166 posts and replied 6748 times.

Post: Creative way to move in together and use current properties

Post: W-2 Exit strategy

Post: Newbie Investor needs help with lending

Post: Should I Be Worried About Interest Rates?

Post: Replace roof and HVAC?

Post: Replace roof and HVAC?

Post: Replace roof and HVAC?

Post: Replace roof and HVAC?

Post: Rehab simple contractor agreement

Post: Replace roof and HVAC?