All Forum Posts by: Tyler H.

Ed Allen, Allen Consulting

I've had luck on my rehabs, with similar ARV's, without putting in fridges.

It can also be used as a point of negotiation with a serious buyer, plus

they can pick the model they want.

I haven't seen a fire damage rehab, with similar square footage, that could be done the right way, for less than 40K,  so you are probably on track, depending on status of the HVAC. Probably not a great first rehab project, unless you use a well seasoned GC, who has great rapport and track record with city officials and that can navigate the city permit process quickly. They can produce big profits if you buy and rehab right!

For your first rehab, it may make sense to buy your own materials (delivery optional), primarily so you can become familiar with the actual market costs of different types of materials. Your contractor may even be willing to go with you or make an itemized list.

Be upfront with your contractor about the fact you want to cut costs and most of the time they will try to help you or give some tips about saving some $. Most contractors will only accept cash or check for payment.   FYI:  You can save 5% on your material purchases with a Lowes Business Card.

You can put up a sturdy curtain rod (or 2) with some sheer type curtains and be done for less than $35 ( think Wal Mart, Big Lots, or Dollar General). This may give prospective tenants a better sense of privacy when they are viewing property. Address ownership of these items in the lease as well.

Fannie/Freddie now offer a 3% down program, may be a good work around, 

depending on the buyer's lender specific overlays 

regarding title/appraisal seasoning:

http://www.fanniemae.com/portal/about-us/media/corporate-news/2014/6203.html

I've had success with Laminate Flooring on rehabs under 150k, primarily in living areas, etc, but not in kitchen/baths, as laminate is worthless when it gets wet.

I use Floor n Decor, they have plenty of styles of 12mm laminate under $1.50 sq ft

A great installer makes a big difference too.

Congrats on your first rehab! Be smart with your rehab costs , hire good subcontractors (the cheapest bids are now always the best), maintain ample insurance. When your rehab is complete, listing the property will be a great experience for you as well. Definitely use TREC forms for everything. 

You are held to a higher standard as an agent, so you must be sure to thoroughly disclose with all  paperwork deemed necessary.  Consult with your broker, your broker's compliance coordinator and or legal counsel with any questions you have about specific issues. Best of luck!

You can list the property for sale anytime (with details on when it will be available and finishing touches that you plan to add), the earlier the better, as you may generate multiple buyer leads during the process. However,  I would hold off showing the property until the rehab is complete. Retail buyers have very little imagination for the end product. 

When in doubt, get it under contact, preferably with a longer option period to assess all options. Garland is a desirable area for many investors, so you should be able to generate some interest if you decide to wholesale (provided there is room in the deal).

 You can be upfront with the seller and tell her them you may pass the deal onto a partner (i.e. assign).