All Forum Posts by: Tab Teehee

Thanks Clifford! I'm going to post some before pics so you'll get a better idea of what we went through, lol

another lesson learned...be sure you understand the permits that your municipality will require and budget accordingly....in my case I needed a permit for electrical, mechanical (hvac), and plumbing at $75 each times 20, or $4,500, and that didn't include final inspection fees! 

@Byron Wilson

Lessons learned...

Focus on getting individual units complete and rented asap instead of working on multiple units at a time.

When contractors aren't performing up to task or dragging their feet, stop the bleeding right away and get them out of there!

The cheapest bids can end up costing you in the long run...hiring a professional GC would have cost me more up front, but I could having stated renting units months sooner.

@Byron Wilson

I wish I had some creative top secret financing scheme to share but it wasn't anything to complex....I approached a local bank that was familiar with the property about my interest in purchasing it, rehabbing it and professionally managing it.

I found a professional management company that helped me prepare a pro-forma for the bank, next was to determine what repairs and improvements were needed to bring the property to a condition to command max rents. Then I put together estimates for materials and labor to make it happen. All this information was provided to the bank and the appraiser, which was how we arrived at the ARV. The bank took my purchase price plus proposed improvements and offered me a 12 month interest only construction/purchase loan. I had to put about 100k into the deal. Now we have long term financing in place and some good cash flow!

@Tab Teehee

I didn't pull out any cash from the deal, so monthly cash flow is better, which is what I was after.