All Forum Posts by: John Vietmeyer

I'm closing on my 3rd property, a 1600 sq ft SFH built in 1975. The numbers originally looked great for the growing Charleston SC market, but my repair costs are quickly adding up. Since it is not earning much as a flip, my plan is to rent it for a few years, take the tax break, hope for some appreciation, then sell. The house is in what I'd classify as a B neighborhood consisting of good schools and nicer older homes. The biggest competition after rehab will be new construction developments. Here are my projected numbers

Purchase price: 135k

Renovation budget: 40k (currently)

ARV: 208k

Do any of the following improvements seem extraneous?

1) Scrape popcorn: $2500

2) Add a tankless hot water heater: $2500 (opens closet in house and resolves code issues with existing tank)

3) Pergo XP flooring through all house besides bathrooms.  $5,000 (could go with cheaper laminant and save $1,500)

4) Gut the two small bathrooms $7,000 (Replace bisque jetted bath tub with white standard tub, reframe leaky tile shower, replace vanities/ toilets.)

5) resurface kitchen cabinet doors $1,600

6) granite counter top ~$3,000

7) Remove structural wall separating living rooms $2,000

8) GE appliances $2,200

There is other work to be done (HVAC, foundation, paint etc.) but items above are the ones with potential for cost savings. 

I'm leaning toward rolling the dice and going with the $5,300.  Spoke with the guy who will be doing the work himself.  He has a license and will be pulling permits.  Main run will be metal with flex to the registers.  

He said the unit he would be installing is a Franklin with 10 year parts warranty.  I've never heard of Franklin, but he said it was made by York.  Is that right?

I'm renovating a 1970s 1600 sq foot rambler that needs all new duct work in crawl space and a 3 ton package unit.  Quotes were $12,000, $8,500 and $5,300.  I know and trust the companies on the first two quotes.  The $5,300 quote is a guy refered by my floor and paint contractor.  

The variables I think I need to consider are:

1) use of metal vs flex duct

2) type of unit installed and warranty

3) will permits be pulled / work done by licensed professional

I want to save money but don't want to create headaches. If I can save money On the HVAC, I will be able to invest more in renovating the kitchen.  Any thoughts?

In general I have just sucked up the cost of the screen myself as cheep insurance. If you follow the screening process you should know if folks have issues before doing the screen. 

From a personal stand point the only time I want to charge is if they lie on their application.  

As such, I have also set it up such that they pay and I credit them the cost in the first months rent as long as things check out. 

good point.  My lender says they can refinance based on a new appraisal within 6 months but just wanted to double check.  

Seems the 6 months will be fine then.  Just a little scary since the balance will be due and I don't want to limit my options to get the best terms possible.  

Is there a maturation period required when refinancing in a BRRR senario?

I'm buying a home with a bank portfolio loan that needs to be repaid in 6 months. I can get the work done, but am worried that I will be limited in refinance options with less than 6 month maturity from the original purchase.  

what kind of counter tops are they?

Nice job! I'm taking notes for my next project.  

Took a little over 2 weeks but HUD approved the purchase 5k under the 140k asking price. It was a short sale foreclosure. I now have the ratified contract in hand and project #3 is getting underway.

Quick update:

I'm still waiting for a ratified contract. The seller accepted my offer which is 5K below the HUD appraised value, but I don't get a ratified contract until HUD has approved. It's been ~ 2 weeks and they will not provide any estimates on how much longer it could take.

Has anyone else experience this?  I'm not sure if I am waiting in vein for this deal to be ratified.  I'm sure if they wait long enough someone will come in with a full price offer.

Greg - you are right. It has to do with a foreclosure resulting from a reverse mortgage.  

My accepted contract is at 133k and the HUD appraisal is at 140k so hopefully I don't have to go through the appeals process.

http://www.city-data.com/forum/real-estate/1239650-property-being-sold-subject-24-cfr-3.html