All Forum Posts by: Rob Myers

I've torn out too many low quality tub surrounds to the point that I just go with tile now.  Property constructed, it will last a very long time.  Make sure to have a cement board backer with an appropriate moisture barrier.  I use a basic builder grade 12x12 large format tile that I pay around $1 a piece for.  Install of the tile costs me around $250.  All in, I'm around $500 to get the work done.  Yes, this is double what you could get a basic fiberglass surround put in for but the durability and peace of mind is worth it to me.

This particular job sounds like something a handyman should take on.  It's a couple hours of work to swap out a bathroom vanity.  

The benefit of using a GC is that the various subcontractors are going to prioritize the GC's work because they feed them a lot of business during the year.  If you subcontract direct, you are much lower on the priority scale of getting the work completed.  It makes a difference in a competitive market with busy subcontractors.

It's already been said above, but it depends on what your end goal is.  Around 35, I began investing in real estate in an effort to diversify my retirement income - not to replace my income and become a new career.  My goal is to have 3-4 different income streams in retirement.  Real estate and my 401ks are two of them.  

I think your approach may be a bit off.  The reason to work on a cost + fee percentage isn't to beat down pricing.  It's for full disclosure and allowing you input on how the project team is put together.  You are going to have a difficult time building trust and finding someone to work with you if the main objective is to beat down cost.  Look at it as a method to maintain some level of control and disclosure and you won't be disappointed. 

For me, I also consider the tenant before making any decision to raise rent.  Good tenants that pay on time, take care of minor issues themselves and respect my property don't see the level or number of rent increases that others do.

If the land is already zoned multifamily and you can divide the current property into two properties that still meet the minimum SF required for the type of property you want to build, don't burden yourself with pursuing a PUD. It also makes it easier to unload one of the properties if you needed to in the future. Research the current city bylaws for your current zoning to understand what you can and can't do without a zoning change. Only then would I consider changes to zoning or a potential PUD.

I'm used to seeing pricing at $2.50-$3.00/SF in my area, however, it looks like they are doing some sort of floor leveling afterwards which would add $.  Is the slab in bad shape?  Any reason they can't just remove the tile and mastic?

Something isn't adding up. If you have a 2+ year rental history, your rental income should HELP your DTI, not hurt it. Based on the numbers above, it seems as if you have positive cash flow. Talk to a new banker today.

I've also been shopping for a 4 family in the Milwaukee area and have some to the same conclusion as @William S.  Purchase prices in the neighborhoods I'm interested in are in the $250-$290k range.  Rents around $750.  Even with lower numbers for capex, I'm at best cash flowing $100/mo on paper.  No thanks.

I know this isn't the answer you are looking for, but why not write lawn care and snow removal into the leases?  I have my duplexes setup with shared responsibility for lawn and snow and don't worry about it.  Yes, you will have the occasional complaint over one of the tenants not pulling their fair share, but it usually ends up working itself out.