All Forum Posts by: Mike B.

@Jason Homa there's a previous post about this a few years ago, but I don't think prices have changed a lot.

Below are my numbers (I speak from experience), based on REHABs only (I'm talking partial to full guts, everything new).  The numbers below are NOT representative of new construction

$35/sq ft doing the work myself

$50/sq ft doing half the work, subbing out the rest

$75/sq ft hiring everything out (acting as the GC)

Hi all,

Haven't posted a big update in awhile, but after completing a previous BRRRR 2 years ago, a flip last year, and a flip-up (personally) to a larger SFH, I'm now working on my 5th project in West Passyunk neighborhood of South Philadelphia.

It's a 3 bed / 1 bath, 1100sq ft row home. Was on the MLS originally for $150K, picked it up for $127,500 (View report) and I'm now in the middle of the rehab. Based on comps & market analysis, after refinancing (and renting out of course) I'll own the property with a 30 year note with NONE of my own money tied into the property, cash flowing a couple hundred a month (I do my own PM, place is getting overhauled throughout thus no major capEx for awhile). 

Since we are mid-progress, still have a lot to go including: Drywall (half the house needs it), painting throughout (neutral light gray tones), kitchen put back together, recessed lights installed (all LED), floors re-sanded and stained (original red oak on 1st & 2nd floor), etc etc.  Will post more photos/info as we get progress done over the next month.  QUESTIONS?  Feel free to ask

Enjoy the progress photos!!

Front of home on the day I closed--> now with awnings removed and new siding on bay window.  Awaiting paint for front door & window (mint green).  Thankfully roof was in decent shape, just needed touch up and silver re-coating.  Will be good another 5 years 

Kitchen: 20+ year old formica cabinets, black appliances and drop ceilings to 8' height --> gutted kitchen revealing original 9 FOOT ceilings and opened the entryway up more!   And yes I'll be putting in white shaker cabinets (uppers are 40"), SS appliances, Quartz, etc.  LVT Plank for floors etc in the future (also recessed lights)

Basement: Cleaned out, updated electrical, plumbing, and GAS (used to be oil) with new central HVAC unit installed and ready for hookup to the PGW line (waiting on PGW).  When done will clean everything up and paint the walls white, add more lighting.  Ceiling height is just over 7' so it feels really spacious

MBR: 13x11 with bay window.  Dark paint --> whole house will  be painted light gray/neutral colors throughout. Built a new master closet (his and her doors, with lighting)

Rear bedroom: added a big closet

Bathroom: keeping the tub (reglazing white), added new wall tile and fixtures, doing new vanity and LVT flooring

@Brynt Rushing - can you get a 2nd appraisal (from a different person/company)?  Are you locked into this bank in some manner?  Why not go to a second or third place? Just curious

I had a friend who recently had a similar scenario.  His personal home under-appraised from market value.  He ended up applying with another bank (and thus a new appraiser came out) and voila.. an appropriate market appraisal was given! 

@Brandon P. - I hope your lease spells out whether they can or cannot paint the walls.  If not, it should in the future and you will eat the cost this time.  My leases specifically state that you cannot paint walls/rooms etc without consent from the owner. 

Quartz.  Doesn't need to be sealed (like granite), can handle heat, etc.  By me, I can get some nice looking white speckle ones for $42/sq ft installed.  Most of kitchens are 100sq ft total (countertops are usually 20-25sq ft at most), so the price difference of granite vs. quartz is minimal. When people come to see the rental, they're always impressed by the quartz (and thus i get more applicants).  Plus if I need to sell my property, it already has a higher end material. 

I've utilized a tub sprayer/reglazer before. Found them on Angie's List (sorted by highest and best reviews).  I used them to spray tub and tile (which was pink) a bright white color.  Cost me $1K for the bathroom which has tile on all the walls + tub.  Well worth it.  Done in a day.  I was able to complete the entire bathroom remodel in 3 days vs. demo and putting in new tile, etc.  Well worth it (I did this in a rental PS).

@Christen G. - I make my own closet system utilizing Closet Maid kits (white melamine) stocked in Home Depot.  Sides and shelves are 3/4" thick and the products can easily be adapted to most closet sizes to make it look semi-custom.  I also add some custom size shelving by purchasing 3/4" white melamine shelves and cutting them to size for odd spaces.  Again, a little extra work but final product is great.  If you have a cheap rental and want a basic kit, you can get similar closet kits from Walmart.com (ship to store for pickup).  However would note the sides and shelves are 1/2" (sometimes 3/8") vs. 3/4" sold at HD. 

I also use LVP in kitchens and baths now.  Installation is faster then tile, waterproof, etc.  I always buy a quality product and as noted above, Lumber Liquidators has good pricing on mid to high tier products.  Signup as a contractor with them and you'll get a discounted price vs. retail

West Passyunk square area or Girard Estates has some decent homes. May be able to purchase two for that price, do a little renovation and rent them out. They have turnkey properties too for low 200s. Depending on what you want to get into next. I invest in that area, PM me if you have questions

Tom Linnik deals are definitely tighter and “great deals” are few and far between. I have a regular job and do real estate on the side. I just got another rental that needs work which is being done now to rent by this summer. But after that I will only wait for another good deal. I agree in the meantime saving money is good until you find “the good one” to buy. Real estate over the long haul is a great way to make extra income, but taking a break now, you might miss out on 1-2 great deals. So I would say “take a break” for a few years but I would say you can do it at a more relaxed pace.