Small multi-family (2-4 units) buy & hold investment in Oakland.
property owned by my in laws that needs major rehab. goal is to rehab and rent. looking for tips/guidance on what rehab can be learned/performed myself, resources for learning (good youtube channels etc). also interested in contractor recommendations in the oakland california area!
Rental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
1y
I'm going to say that, in the beginning, it costs more and takes more time than I expected. Please source money before you "need" it.
That said, I pay for electrical and plumbing always, because these cause a danger to myself and the property, and also because they probably require a permit on anything they touch. Things I can do which add value and that don't require a permit: painting, tiling, installing luxury vinyl plank flooring, refinishing or replacing cabinetry.
Rental Property Investor · Redding, CA · Member since 2023 · 2 posts · 1 vote
1y
Hi Robert,
Great post!
First and foremost, please be realistic on what type of repairs you feel confident in executing on your own AND the time/resources expended to complete them. It's very easy to underestimate the project scope, budget and timelines, while dragging things out several months longer than anticipated.
Secondly, keep it simple. Be consistent with paint colors, paint sheens, floor coverings, fixtures and wall coverings. This will keep your life less stressful when performing repairs. I tend to install low-cost upgrades that allow my tenants to enjoy the qualities of a smart home, however, this can be a double edged sword if you have tenants who aren't tech savvy. That said, all of my switches, receptacles, LED lighting and water heaters and HVAC units are identical between my 'like' properties.
Regardless of permit requirements, if you have the grit to perform the work, you will save a bundle on contractors, while maintaining the quality of work that YOU expect. Less capex, more equity.
If you are performing extensive work that requires permitting, such as structural wall repairs, insulation, drywall, plumbing, electrical, mechanical, roofing, windows, please pull the permit(s) as they will aid in protecting you now and with a future sale. Remember that permits do not equate with workmanship; they only ensure that the work meets code. You'll be amazed at the deviations in workmanship that still meet code. Vet your contractors well.
While I do not own any properties in Oakland specifically, I can provide insight based on my professional experience, to the workflows for commercial and industrial permit applications....My advice is simple: Be patient; the Oakland AHJ has been severely understaffed for years and nothing returns quickly or comment free when moving through planning, building and fire reviews. Your OTC permits may be simpler these days. Some AHJs will allow you to submit a string of individual permits, while others want full visibility of the entire project and scope for a master permit. Where allowed, I tend to pull individual permits so that I reduce the risk of a master permit holding up occupancy, should it not pass on one of the finals. Keeping them separate is a great way to de-risk your specific work paths.
For my BRRRRs, I perform all of my electric service upgrades, re-wiring, plumbing, insulation, windows, drywall and general demo. Roofing is an area I'm not comfortable with, so I tend to demo my roofs and perform dry rot repairs. I use a roofing contractor for the foam or composite install (I gravitate to homes with low-slope roofs, hence the spray foam). Most CA roofing contractors are booked out 4+ months, beginning in April.
It's hard to tell from your photo angle, but I suspect you also have a low slope roof, covered in either spray foam, tar/gravel (BUR), or modified bitumen (torch down). If you need to update the roof, I recommend the spray foam roofing. It adds R-value and will last a very long time, if you seal it every 9-10 years. Also lower $$$ to install compared to modified bitumen.
