Advice and Connections on Investment Property in Napa

[Jodi Low]

Thank you for clicking into this feed!  I'm excited to make new connections here on BP.

CURRENT PROJECT:  I have a great opportunity to learn more about the industry and gain experience by helping a dear friend with a newly inherited income property.  Neither of us has done anything like this before, although he has some basic experience with construction/remodels.  The property is owned free and clear, in a rural unincorporated area of Napa that is transitioning. The current plan is to hold, take a cash-out or hard money, address deferred maintenance and rent.  I will be posting here often to get advice as we move forward, and for now, I am looking for referrals to good licensed contractors, to make connections in the Napa area and any advice on assessing market rents after improvements.  

DETAILS

SFH: 2 story, 2bd, 2.5 bath, 1900 sf, 2 car garage, additional shop or storage area, river view (flood zone)

Estimated current market value:  $5-600K 
Comps have been tough as it's a unique area with limited comparable properties for sale. Updated turnkey properties in that neighborhood have sold for 700K-1.5M in the last 12 months and1 property is currently listed down the street for 1.2M.

Improvements needs:  new roof, replace wrap-around deck and 2nd floor balcony, interior paint, flooring.  Kitchen and bathrooms are somewhat dated, but in good working order and could use some minor repairs, if there is money left in the budget, would consider updating them if it would increase the rent.  Proposed rehab budget $50-60K.

Question #1:  Do you cushion your rehab budgets over BID?  If so, by what %?

Question #2:  Would you consider using an unlicensed contractor for items like interior paint or flooring?

Estimated market rent after improvements:  $3K (averaged from other similar properties in town w/ no waterfront)

I've spent time researching local rent rates for in-town properties as well as properties in the immediate rural region but have been unable to find comparable water-front listings.  There is limited inventory regionally but lots of new construction underway in town.

Question #3:  How would you go about assessing current or after reno rent value?

MY BACKGROUND: I am relatively new to BP and excited to be learning everything I can about income property investing and building wealth and financial freedom through property investment. For 10 years, I've been a passive landlord of a 500 SF SFH property out of state with a small positive cash flow, good equity and increasing property value and am exploring how to leverage this property to eventually own multiple income properties through the BRRR approach as well has potentially house hacking in my local area where I currently rent. I have a thread about that here: https://www.biggerpockets.com/forums/52/topics/779349-hold-or-sell-and-help-with-the-s

Thanks for any insights, experience you are willing to share.  Feel free to post here or DM me.