Encapsulate a crawl space,New ductwork, rotting floor joists…

[Charlsi Kelley]

Hi BP! I am under contract on a property that has numbers potentially good enough for a brrr. We are under contract at 300k and ARV is 430 bast on very similar comps in neighborhood. I had a budget of 30k rehab to do the necessary updates to get to my 435k target ARV. Hone is in excellent shape - new roof, floors are perfect- just a time capsule from the 80s. However, the property has 4-6 rotting floor joists and needs new subfloor in some sections. The cause is apparently long-term moisture damage from the ductwork that runs in the craw space rather than the attic. Yes we are going to push for a price reduction but in your experience should I do all of these repairs all at once before tenants move in? Should I do them in stages after I can save up some cash flow/refinance? I don't believe any of these will add to the value of the ARV:

1. Replace joists, subfloor (appx 14k)

2. New ductwork (8k)

3. Encapsulate crawl space (8k)

[Dave E.]

@Charlsi Kelley I’ve been a contractor for over 24 years and I am a little confused by your post. Can you please explain how having ductwork in the crawl has caused such significant damage? That is very strange to me and sounds like something else may be going on? I’m not trying to be critical, just want to help and make sure the problem is actually getting solved for you!