Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Rehabbing & House Flipping
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated 10 months ago on . Most recent reply

User Stats

57
Posts
16
Votes
Scott Taylor
  • Investor
  • Oakland, CA
16
Votes |
57
Posts

How would you handle this dispute with a rehabber?

Scott Taylor
  • Investor
  • Oakland, CA
Posted

I had a rehab project to fix up a unit. Rehab project was supposed to cost $50k.

The unit involved was a small studio; under it, a garage. This was renting for around $700 (garage for an additional $100). 

The unit was wrecked but I was sold a rehab project that would be much more expensive so that the unit could be converted into a bigger living space; the idea being that we could get more rent out of it (close to $1200 vs. $800/mo).

The rehab was supposed to take ~ 3mo. It ended up taking around a year.

During this, the rehabber was not responsive to my calls/texts. Meanwhile, the city was also fining me for the unit not being up to code.

After the project completed, I got a trumped up bill, asking for roughly $10k more (~ $60k). 

I had not agreed to any of these additional charges before the rehab was completed and was surprised when I was sent the final bill. 

Also, because of code issues, the unit can't rent as a larger 2 bdr. on two floors so is still a garage + studio/small 1bdr, so the whole point of a doing a larger rehab was pointless. (in fact, the rehabber had extra expenses because they had to fire rate the garage).

Further, I'm out of roughly 9 months of rent (@1k per month = ~ 9k).

How would you handle this?

Most Popular Reply

User Stats

1,375
Posts
306
Votes
Jacob Sherman
  • 12 Penns Trail Suite 138 Newtown, PA 18940
306
Votes |
1,375
Posts
Jacob Sherman
  • 12 Penns Trail Suite 138 Newtown, PA 18940
Replied

have you reached out to a real estate attorney ? 

Loading replies...