All Forum Posts by: Sergio A. Chucaralao

Doing your own general construction for a rehab project can have several advantages but can be very costly attempting  without having knowledge and experience.

1. Cost Savings:By acting as your own general contractor, you can potentially save money by avoiding the markup that professional GCs add to subcontractor fees and materials costs.

2. Direct Control: Managing the project yourself gives you direct control over every aspect, from selecting materials to scheduling subcontractors, ensuring that your vision is accurately 

3.Learning Experience: Taking on the role of a GC can be a valuable learning experience, providing insight into the construction process and improving your skills for future projects.

4. Quality Assurance:You can personally oversee the quality of work, ensuring that all tasks meet your standards and avoiding potential shortcuts that some contractors might take.

5. Direct Communication: Communicating directly with subcontractors can lead to clearer instructions and better outcomes, reducing the risk of misunderstandings or miscommunications that can occur when messages are passed through a GC.

6. Financial Transparency:Managing the budget yourself allows for greater transparency in costs, helping you to identify where money is being spent and find opportunities for savings.

It's important to consider the potential downsides, such as the significant time commitment, the need for substantial construction knowledge and experience, the risk of costly mistakes, and the responsibility for managing permits, inspections, and compliance with building codes. If you're confident in your abilities and have the necessary time and resources, taking on the role of your own GC can be highly rewarding. 

Quote from @Ryan Brown:

Good evening,

I'm a landlord and have a tenant on the 2nd floor who has children. Therefore, it's required to put up window guards for their safety. Since the weather is getting warmer, they would like to use their window air conditioning.

The problem is that the window guards are not allowing the air conditioners to be installed. What options do I have to help my tenants to have some type or relief from the upcoming hot temperatures?

Looking forward to your replies.

Thank you in advance for all the advice/tips.

P.S. Attached is a photo of the window guard

I would reach out the building department and ask them what is allowed,  usually  the window air conditioner  doesn't leave enough gap on the sides for a child to fit and you secure the window with brackets in the window tracks, this way the window doesn’t slide up. But again I would check to make sure.

Quote from @Lisa Rechsteiner:

Hi guys,

I am in need of help with my decision as to paint my kitchen cabinets or not. Would y’all be willing to look at this photo and give your opinions?

I don’t want to hire a painter to do this. The quotes I got are outrageous! Also, should I paint the inside as well? They are just raw press board now.

 If that was my case, I would first look at the comps. Also I would check the return on investment, if you were to make those improvements. It is all about if it will helps the sale, in price or time it will sit on the market  which it ultimately comes down to money because of holding costs.  I hope this helps! Happy investing!.

Quote from @Lynn McGeein:

@Sergio A. Chucaralao I have a set email response for inquiries that states my typical qualifications, attaches my application, states if they meet those requirements, I’m scheduling appointments x date between 12-3, send preferred time and I’ll confirm, and that I do not accept applications until after meeting at the appointment. If asked, I tell them I’ll discuss possible minor exceptions to typical qualifications at appointment, but absolutely no judgments or evictions. I overbook as usually a few no-shows. If they say they can’t make that day, I let them know I’ll set up another date if an applicant is not accepted from this session. I don’t really want the ones who are already being difficult before they apply, so helps to weed them out.

 Thank you for taking the time to reply, I was curious to see how other landlords pre-screen or screen potential tenants. 

Quote from @Haz Zoleta:

I might have a property in the area that's more a SHELL...new plumbing,electic,roof,flooring,walls,ceiling,HVAC etc it's 2400 SQFT. It's already been cleaned out just a shell. 2 Floors and attic.  Can anyone give me an Estimate of what this would cost?

 As everyone have said, it is difficult to estimate with the little information and without being in the property physically. There are so many factors that influence the cost of the rehab. The best option would be getting a local reputable contractor to walk the property and discuss your intentions with the property.  With that square footage I would say 180k to 230k. Again that is just a number that can easily be way off.  

Quote from @Christina Baliva:

Hey there! Although I have been a BiggerPockets site member and listener for many years, I have to admit that I've been stuck in analysis paralysis. I am now ready to push past this and get out there! With this being said, I have interests in a few different avenues: STRs, BRRR and flipping. My two questions are:

1. What is one piece of advice you'd give me as I begin my journey? 

2. With my interests above, what avenue would be the best direction to begin with in the Phoenix Metro area?

Thanks in advance!

Happy to see that you are trying to break that analysis paralysis,  there are some things I would consider: How are you planning to source deals? How much funding do you have? What is your risk tolerance? What are your exit strategies?how much rehab knowledge do you have and if you don't, how will you find reliable contractors? How will you mitigate in case the contractor doesn't perform? I am not trying to overwhelm you but right now borrowing money is expensive and it can turn a good deal in to a bad one. I do BRRR but I am able to take more risk because I am the GC and I also fund my own rehabs.  If you are able to answer all those questions you will have a better idea which path you want to follow.
Best of luck!

Quote from @Stefani Mokris:

Hello everyone! 

Are there any in person meet ups in North Jersey anytime soon?

Do you know if North Jersey has a REIA?

Thank you!

I found this one, it's coming up next month, If anyone is going, send me a message to get a table together, if anyone is interested.

Quote from @Nicholas Sanchez:

New to adding a second bathroom to a home. EB is where the electrical box is and WH is the water heater. 

Where would be the best place to possibly add a second bath with the least renovation needed? 

I was thinking of possible adding the bathroom where that laundry room is and move the laundry room next to the water heater with a stacked washer/dryer unit. 

House is on a slab. 

 It depends what are you looking for, If you are trying to do it on a budget. The sewer line will dictate the best location. If budget is not issue I would make the primary room into a master's room and turn the closet of the second room in to the new bathroom using part of the laundry room.  Then the laundry room left over space will also turn in to the closet for that second bedroom. I like it better in the closet location because it is closer to both bedrooms compared to the laundry room. 

Quote from @Andrea Lopez:

Looking for a Cost Segregation CPA specialist for my first 2-family property in Northern Jersey!

Hi, is this an investment property?  If it is your primary residence you can't cost seg. I believe. 

Quote from @Teho Kim:

Just found out that assumable loans are a thing for VA loans. My next military assignment is to Del Rio TX and I'd like to get take advantage of the assumable loan.

But despite it being a small town with a proportionally large military presence, I'm not seeing any mention of assumable loans on listings. Is this something I have to inquire for each listing agent? 

I personally would approach this with a self assessment. Think first who will give up this great benefit?  Would you do it and why? Remember all the not so wise decisions the junior enlisted have done or some not so junior as well? I would educate them on how it will affect them.  When a service member allows someone to assume their VA loan, it can have several implications: The service member may regain their VA loan entitlement, which can be used for a future home purchase. However, they may need to meet certain conditions and repay any remaining amount of the loan or use their remaining entitlement.
 Allowing someone to assume the VA loan may impact the service member's ability to secure a new VA loan until the assumed loan is paid off or released through refinancing. This can potentially limit their options for future home purchases.
It's important for service members to consult with their lender and the VA (U.S. Department of Veterans Affairs) to fully understand the implications and requirements of allowing someone to assume their VA loan. Additionally, they may want to seek legal or financial advice to ensure they make the best decision for their specific circumstances.

If after all this if you still looking to take advantage of such opportunity, I would verbalize in your new duty station that you invest in real-estate and that are looking to take over a loan. I would go after assumable loans but not VA loans because if someone is letting you assume thier VA loan is probably because they don't know the disservice they are doing to thier future. Best of luck!