All Forum Posts by: Robert Lei

@Bruce Woodruff He told me no permits are needed, but he got called out by an inspector who saw the yard work while checking other neighbor's houses. So as far I know, only the sewer line has a permit, nothing else inside. I am sure inspections hasn't been a thing at this point. The contract is through Joist App, which lists all the work that needs to be done, broken out between whether the cost includes material and/or labor.

Yea, hindsight is 20/20, but my trip had no end in sight at that time, and I didn't want to completely withhold payments.

No, I can't control the hours, but should I not be able to hold them accountable to their words as far as what time they would be showing up each day?

I am about to go TDY again for no less than 2 months. I'd like to be able to trust them to finish the work in a timely manner. 

@Carl Millsap Thanks for the reply. The first timeline he gave me was 3-4 days for just the kitchen, vapor barrier, and the sewer line. 

1. He seems to be doing most of the work in house, with redoing concrete for the sewer line subcontracted.

2. Most of the materials I supplied from Lowes. Getting supplies hasn't been an issue this entire project.

3. No, I never expected him to be finished within 3-4 days, considering how old the house is. And there has been quite a bit of setbacks as soon as we peeled off the original drywall. However, all of them were fixed within 2 days. But the lack of progress on things that ought to be finished is frustrating. For example, part of the contractor was to reseat the toilet, which based on watching previous plumbers do it, I'd generously give it a 4 hour job. I'll admit the full bath was a late add-on, but that was added on day 2 out of 27 now. 

4. I haven't paid anything besides the deposit, the materials that we agreed he'd pick up, and the "completion" costs. Since I was out of the country, when he told me something was complete ie the sewer line and the vapor barrier, I'd pay that part of the contract in full. Come to find out, the driveway concrete was still torn up (ok, just waiting for his sub, but I've paid in full already), and there was no vapor barrier laid down in the crawlspace (GC had gotten a "picture verification" from his sub that it is completed, so I'd paid accordingly).

I left a very detailed note, and maintained verbal/text communication with my GC while I was gone, so I am not sure communication was the issue here. I asked him to explain some of the things I was looking for, and he was able to tell me exactly what I wanted. Again, he told me initially 3-4 days, and then "it will be done by the time you get back (I've been gone for 2.5 weeks at this point)," and right now, it's "we will be all wrapped up by Wednesday."

What is the most frustrating part of it all is that he would tell me he is showing up at 9, 1030, 11, or whatever, and be AT LEAST 2 hours late every time. And that's on the days I was around. I don't know if he showed up everyday while I was gone. For example, after I called him out for lying to me about the vapor barrier, he promised his guy would show up at 1030. Currently, 1310 and nothing. And no, he and his team doesn't work until 7, 8, or 9. They take off around 4 or 5.

Currently renovating my kitchen and I am curious as to the timeline I should be expecting my GC to finish. Yes I understand it depends on a lot of things, but I just need the floors redone, add a 30’ counter, add a dishwasher along with the water hook ups, new sink, add a garbage disposal, completely redo the ceiling, and replace the overhead light. I’d estimate my kitchen to be roughly 400sqft, with the majority of the cabinets untouched.

I’m asking because it’s taking my GC 26 days and counting to do it. I am also having him install vapor barrier in my crawl space(entire sqfootage of the house is ~1600sqft), replace my main sewerage line that runs into my tenant’s place, add in a full bath, and add in 2 small closets. 

I don’t want to be impatient, but there hasn’t been much progress anywhere as far as I can tell. Of everything I listed, not a single piece of the project is completely finished. Everything is still in progress. It didn’t help that I essentially got deployed for about 22 of those 26 days, so I’ve been receiving progress updates through phone calls and occasional pictures. 

Am I overreacting in wanting to fire this guy and just get new GCs?

Look up Window World. I am getting my windows replaced at ~$600 each, including the impact resistent/hurricane whatever features. They haven't started work on it yet, so standby on the review there. However, all the online reviews are pretty good.

@Account Closed

I am still active duty, and I do not pay PMI

Check with your local banks for residential loans. As long as you have a history of paying your debts (decent credit score), banks should lend to you.

Personally, I would find something that cash flowed positive, after all said and done (capex, maintanence, vacancy, PITI). But realize that every market is different, and if this is what it takes to get a foot in the door, then do it. Maintanence and capex would depend on what's in the property. Is it central air? Each unit has its own air? Whats going on with the water heater(s)? How old is everything? What shape is the roof in? Can you renovate the units to increase the rents?

My own technique is to do about 5 - 8% of rent goes towards maintanence cost per month. Whatever doesn't get used is saved into my reserves. My goal with the reserves is to have enough cash to survive 2 major capex replacement. That is going to be at least 10k for me. Are you a handy person? If not, you would have to hire out all the repairs. That would force you to spend a little more on monthly maintanence. But honestly, besides the occasional light bulb replacment, smoke detector battery replacement, HVAC filter replacement, your monthly repairs isn't all that much. 

Whether this property is too expensive depends on the market you are in. I can get a 4plex in my area for about 350-400k, and still cash flow $500+ after all said and done.

@Ryan Proffit

I am flying C17s out of Charleston, SC, where I also invest in.

I am currently renovating one of my units by myself. I’m a first timer everything, so it’s taking a while. However, I am deploying for 3 months at the end of this month. That means all work would have to stop, and won’t be completed till I get back, which means the earliest I can get a tenant in that unit is May, when I come back and finish the work myself.

There was an issue in another unit, and I hired a plumber, who turned out to be a general contractor. This GC found out I was deploying, and asked about renting my house hacked unit to a guy he brings in for seasonal work (~3 months). Long story short, I don’t want to, but the GC finds out about the reno unit, and offers to finish the work in exchange for housing his guy.

I really like the idea of exchanging rent for labor, especially since I can’t do it myself while I am gone. I was going to rent the unit for ~$950, and I would essentially get $2850($950x3 months) worth of “credits” from this GC. I offered to pay the difference of what it actually cost him and 3months rent (so if billed labor was $3k, I’d just pay the GC $150).

Reasons why I like this:

-Building rapport with this GC and his businesses

-I get my reno done professionally at a heavily discounted price or potentially free

-unit was going to sit empty anyways during my deployment, but now has a handy guy living in it

-short term deal with the GC, at most I would sign a 6 months contract and charge the actual amount beyond the cost of reno

Things I am getting done:

-Laminate floors install and base boards

-Cosmetic touch ups in bathroom (to include dry wall)

-new front door/frame install

-putting up ceiling fans

-replacing cast iron pipes for sewer lines

Would it be a good deal, all things considered?

tl;dr Deploying because of the military, renovation has to stop. Renting short term to a general contractor, who will finish the renovation in exchange for his rent

Dumb question, but is asking a police officer to swing by just to assess if there is weed (quick smell test) be too much/a violation of anything/asking for trouble?