All Forum Posts by: Randy F.

Another option is to rent the garage seperately from the house for storage or a work shop. In years past, ive had need of extra space for toys, tools, equipment, and when my hobbies outgrew my shop space. Ive paid up to $350 for an insulated, heated garage and $150 for storage.

I dont disagree with Brian Hoyts assessment based on his assumptions, I simply make different assumptions.

Dont have enough info on the one side, but the 1" drop on the other wouldnt cause me a great deal of alarm. Ive seen 6" resolved with mud jacking. It sounds like the building is fairly new and in this day and age there's a torch under everyones butt. One would think the developer/contractor used in a higher end project would have used rhe proper fill and compacted to spec. Where settling generally with show is at corners where there is the least load dispersal. And the density acheived thru compaction is lower at the perimeter of a pad and if it did not extend far enough past the footprint of building, the material in that area will settle. The cheapest test is time. Staking the perimeter for reference points, and watching for additional movement would be the way to go if you had time, but the deal awaits. Would be nice to know exactly how long since it was built. The age as well as the time fo year can give clues. If it has gone thru a cycle of seasons and its only an inch at all settling points, I wouldnt be afraid of the deal.

Brians advice to tie it up with a 21 day inspection contingency period is a good one. Sounds like a great opportunity... I would tie it up and get as much time as possible.

Hope it works out for ya, Mike.

As they say, " If it were easy..."

Where is the mold? If in bathroom, make sure fan is clean, runs, and that its being used while showering and run at least until mirror fogging disappears. If in bottom corners on walls its lack of air circulation. You can also check and make sure exhaust fan over range works, vent is clear, and that its being used while boiling water etc.

Running an ozone air purifier will kill many types of mold.

Texas grows some big Whitetails and hunters will pay a good price for their own little slice of heaven. If the surrounding area has a high percentage of forest land and the 40 is mostly treed, id bet theres a healthy population of whitetails. Are there any ponds syreams or marshy areas? Any row crops nearby? Is it flatland or rolling hills? You could pay a local farmer to till up a few strategically placed 2-5 acre food plots and market it to hunters. And you could lease it to hunters until you get a buyer at your price. Id be willing to google map it and give my opinion on it if you message me the address.

I like the way you think, Amie. I like the big old homes with carriage houses in the midwest for that very reason. The largest expense will be bringing in water and sewer. Even if its close by, the dollars add up fast bringing it in under the slab. It will also likely need its own electrical service as Steve mentioned, and then rewired based in layout.

The first thing I would check out is whether or not the city will allow it. If it is as it sounds, that the garage door is right on the alley, it may be within the easement. May be grandfathered as garage, but generally a dwelling needs to be a minimum of ten feet off property line. You might also check on what they would require as far as plans and permitting. Having never been a habitable dwelling before, they may require engineered drawing/plans. If youre trying to get it done under 20K it all adds up really quick.

If the garage doesnt pan out and this is in a smaller town where mobile homes are permitted, you could plant a decent one on the lot for near the 20K and get $500 -$600 with the garage. If you put $25K into setting up MH you'd be all in with the two rentals at 1.7%.

The importance of a detailed scope of work cant be understated. Unfortunately, there are many contractors who basically fly by the seat of their pants, and a rehab can get out of control in a hurry.

A take-off from the detailed scope provides a detailed schedule, providing daily goals for crew, black and white expectations for accountability between investor & contractor and contractor a crew. And there is no better tool for both investor and contractor to track labor, and learn and fine tune estimating skills.

Generally speaking, a contractor who is unwilling to provide a detailed scope and schedule, isnt confident in his ability to either draft them accurately or meet their dictates. At that point its a crap shoot.

As Karen mentioned, why it got out of hand is important to know, and may clue you to whether to bail him out or not. Even if he does great work and plays well with others, if he isnt organized and hasnt learned to manage the work flow, how can you expect him to do better on the next five rehabs while hes paying you back.

Another thing to consider is what his financial health will be taking a $1000 hit on each job. Once you get behind the eight ball it can be tough catching up. And his incentive to put his time into other jobs will be greater if his cash flow is restricted.

Im not about bashing contractors... Theres enough of that going on already. He may do great work, have a strong work ethic, amd be a great guy to work with, but simply isnt the full package. The fact that you are considering the loan indicates he has redeeming qualities. In that case, you might treat this as a learning experience and work with him on doing it right going forward.

Please keep us posted. Good luck!

Most anyone who asks gets my advice, educated opinions, and unwritten estimates at no cost. Owner occupied get free written estimates and bids. Everyone else pays between $150 and $500, depending on how extensive it is, and that is refundable if contracted.

The reason for the higher cost, aside from the spot on comments of others, is because I put my name on it. And I dont put my name on it unless I put in the time and energy required to provide the most thorough and accurate estimate and scope possible, which includes an accounting for all potential problems and challenges not visable. My business relies upon and thrives upon word of mouth, but it goes both ways. When consumers receive a great product or service, on average they will tell 2-3 people about it. When consumers receive a bad product or service, they will tell 7-9 people about it. And I dont take the responsibility lightly. My work could cause an investor to get into a deal that burns him. If hes a newbie, that could be life changing.

I agree that learning to estimate ones own rehab is ideal. Without actual remodeling experience you can learn it well enough to make your "guesstimates", and after having completed a large number of different types of properties you will even begin to see the unseen and come in close to actual cost, but contractors cant and dont(shouldnt) give "guesstimates".

How many of the rehabs you have estimated came in a couple grand or more under real cost? If I did that Id be out of business. As an investor, how many dollars are you willing to gamble? A heating thermostat has a differential; the temperature difference between beginning and end of cycle. On top of that, there is overshoot; residual heat that comes after thermostat is satisfied. A small differential leaves temperature in a comfortable range throughout heating cycle. If you have a ten degree differential between the call for heat and end of cycle, you may find the low and high ends of cycle are a bit uncomfortable. The benefits of a "small differential" to a rehabber can be measured not only on ROI, but on confidence and peace of mind. Knowledge is power. And starting out that is HUGE.

Its easy to throw out opinions and advice when we wont suffer the real world consequences. I certainly dont always say the right thing and often rant away out of a desire to be thorough and understood... to a fault! I just hope everyone remembers that even as BP is a truly enjoyable experience, people are asking serious questions and put faith and trust in the experience of its posters. That should not be taken lightly.

Hey! Maybe if I dont pay my mortgage, I could get...

"Spank me! Spank me!... Make me have a good FICO score!"

How about...

"S&M@BP"

OR

"Bigger Pockets... Around you ankles"

Finding motivated sellers? Hmmm... I find that leaving the house works pretty darn good!!

Ned, now THAT is a smart azz comment. Yours was apropo!

Actually, networking with agents and contractors is a great way to find deals that may not be listed yet. Ive gotten the inside scoop many times from a burnt out landlords looking to see what it would cost to bring units up to saleable condition.