All Forum Posts by: Sean Julian

And it’s rented. 1 day after rehab complete. Came in 2% higher cost. Need to wait for the 6 month point to refinance but I say coming within 2% on my first deal isn’t too bad.

Rehab finished today! Now to get a tenant. We’ve had some showings, but no one has wanted it yet. Hoping now that construction is done people will feel more comfortable renting it.

I live in Houston but decided to invest in Indiana. Like Brenda said, people are overpaying right now here. 

Rehab costs more than you plan. It’s more challenging to get a contractor than I thought. Those are my two biggies from my first rehab. 

Progress update....

Windows went in with only minor issues. HVAC came out today and broke my heart. Both the AC and Furnace are shot. I’m already crazy over budget and this doesn’t help. Plus it delays getting the tenant in. On the plus side, it wasn’t that much a surprise as the other contractor that bid said it was shot. But I was hoping my contractor was correct that it was serviceable. The first project sure is a doozie.

I’ll still do this again. I’m not quitting yet.

From what I’ve experienced the banks and mortgage companies are requiring a seasoning period. 6 months. 

Thanks!  

Another lesson learned today... I ordered the appliances today thinking that they would show up way too early and construction wouldn’t be done. Nope. No appliances until August 4 and rehab is scheduled to be done July 31. Now the contractor has to come back to the house. Darn rookies.

The contractor was nice enough to keep his word and and agreed to install them even though his part of the project should be done.

Rookie mistake number...who knows.

Found a great contractor. He was $3000-$6000 more than the other one I had found. But he could start and finish in a month instead of 2 1/2 months. I signed on the dotted line.

My buddy calls me and says, “so you signed up with the contractor that cost more but can get it done faster? How many months of net cash flow will it take you to make up the $3000-$6000? More than 2 1/2 months? Then maybe you should worry more about the quality instead of the speed. Was the new guy that much better that you needed to spend so much more?”

I absolutely chose the new contractor because of the time and I paid a lot for it. There were other reasons but I wouldn’t be honest if the 10 week vs 4 week didn’t make my mind up regardless of price. Oh well...another lesson learned.

We closed last evening. Another contractor came out and says he’ll send me an estimate this week. I signed a contract with a PM (waiting for her to agree to my changes to the contract). She has two people already interested in the place.