All Forum Posts by: Ricky Stafford

 Yeah and I really don't plan on doing any more deals in the area that this rental is in so I may be better off just going through a GC. For some reason I have in my head that most investors work with GCs as a rule but sounds like it may be more case by case.

Well, my one and only project that I did before was done by my cousin and his son and a friend. They all charged me by the hour. I was basically able to just tell them everything I wanted and it seemed to go pretty smoothly. While they did a great job I think, they don't normally do rehab work nor will they probably want to in the future. Thus, I'm in my current predicament.

Is 10-15% standard markup buy a contractor? I have read that they can markup as high as 50% and don't like to disclose numbers so that got me a little scared.

The architect tip is a great one. I have thought about it. The space isn't very large or complicated though (basically a few boxes < 800 sq ft) so I may be able to save that expense.

I realize at the end of the day it's all on me whether I want to put in tons of work to save money (and like you say, still get sub-par work done) or hire experienced professionals to make sure things get done right. I am assuming most investors hire GCs, but I wasn't sure so I wanted to ask. It doesn't seem to get talked about enough (or maybe I'm not looking hard enough) because when someone says "contractor", it can mean anything. An electrician is a contractor as much as the person managing the build. I would assume that the GC generally has employees though or subcontractors they have experience with and trust.

I should also add I'm looking for this rental to be a STR. I'm not interested in flipping at the moment (not sure why they bundled Rehab/Flipping into one forum)

I'm curious how most investors handle their rehabs/remodels.

I have a space that needs completely gutted and it is going to be a big job. It will require everyone - electrician, contractor, plumber, sheet rock, flooring, etc...

I am wondering (and beginning to think not) if it's worth trying to manage the project and purchase materials and pay people hourly. So far, it's been a bust. I called a carpenter that does a lot of work in the area but he has so far been flaky and dodgy. He only came to look at the place a few weeks ago and said he would call me early this week, but haven't heard anything. An electrician I talked to last week told me he would get to me by yesterday or today. Again, nothing.

Are most investors simply hiring a contractor to sub out the work and then presumably eat the 50% markup? I can't hardly stomach the markup involved in letting someone else manage everything. Then again, I'm an investor and not a contractor/builder so I can't hardly stomach managing people that don't want to work either.

I was originally considering Austin because I might move there in the future but I have basically given up on finding a deal from out of state after looking over and over.

So, I feel like San Antonio is a good pick since I know there are still deals and it's not far from Austin if I do move.

My question is - are there still deals to be had in B+ to A- neighborhoods (high quality tenants) while still seeing >1% rent/purchase price returns? I'm concerned with high taxes and HVAC maintenance (with the heat) so I would think one would have to demand a fairly high return to be safe.

Thanks Matt for the detailed, helpful information. I keep hearing Brandon and Josh talk about "house hacking" so I just assumed that duplexes were very common and abundant across the states. It sounds like a dream setup for the startup investor.

I definitely want to be in minimum of a "B" to "B++" neighborhood at this point in my life, so I probably wouldn't be willing to make a quality of life sacrifice to find a duplex.

It's sounding more and more like I just need to suck it up and have roommates in a 3/2 situation.

Thanks for all the replies thus far.

I am really only considering Raleigh since that is where the tech companies are concentrated and I'm also considering employment opportunities for myself in the area. I like to invest where I live. I currently live in Western NC so it isn't that far. 

The only downsides to Raleigh I've seen are A) not many duplexes and B) mostly cookie-cutter type homes. Austin is expensive but there seems to be a lot more older homes with style/character. 

I'm also not dead set on a duplex and am not opposed to a 3/2 and could rent 2 bedrooms out as STR or LTR if necessary. I am not super concerned with positive cash flow as long as I can break even. I figure if I am living for free then that is enough for me until I can find other investment potential. I'm thinking this will still be easier to do in Raleigh than Austin though.

Hi.

I am interested at swooping up a vacation rental style investment in the shape of a duplex that would also double as a long term rental should it be necessary. I would live in one side. In most markets I have looked, there are few, if any, duplexes for sale. Zillow makes it notoriously difficult to find duplexes. The only way I have found any are by using the keyword "duplex" or "multifamily". 

I've checked Austin, TX and Raleigh, NC as they are both hotbeds for tech which is kind of what I am looking for, with Austin being the more general-purpose market (but also more expensive).

Any ideas on where to start? Thanks

I rent out roughly 40% of my house on Airbnb (it's divided by door, has its own open kitchen living area, bathroom, bedroom). I renovated and started renting the middle of last year. 

The apartment isn't used for personal use at all, so I assume I'm able to claim depreciation even if it's vacant. It rents consistently, about 20 days a month, but there are still some vacancies. I've already filled in tax info for the 5 yr depreciating items that I bought last year for the apartment. 

My question is, can I claim residential depreciation over 27.5 years for the apartment itself since it was a personal "home" that was converted to a rental? Would I just take the FMV of the entire house and multiply by 40% / 27.5 for yearly depreciation? And how would I find FMV in the first place?

Thanks in advance for any insight.

What do you call someone who owns 7 "successful" rental units, if not a seasoned investor? It's all relative of course, but I think you're more ahead of the eight ball in respect to most others. Even most others on this forum. A recent BP podcast told us that 50% of all real estate investors owned one property. So there you go.

I think the problem is you've asked a broad question which leads to broad answers. We need more details. I actually think @Kyle Hipp was probably the most spot on. It does sound like you have no reason to try because you have reasons to fail (income no matter what). So I agree with anyone else who says some personal development is in order. I would highly recommend reading as much as you can and maybe even get more formal education. As far

If you want excitement, change, and things to happen, then definitely move. Not all of the mid-west is bad, just like not all of the east or west coast is bad. Just find out what it is you want to do and find a place where doing what you want to do is commonplace or at least feasible. You're young and it does sound like you're single, and you have basically location independent income, so I don't see a whole lot that is holding you back. I wouldn't necessarily sell my property if it was cash flowing. And you say you can't even sell. Find a PM and if you still have positive cash flow then just move! Get a few part time jobs and freshen up your surroundings. But definitely set goals and make plans to get from point A to point B before you just up and move.