Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
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 12 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

1,380
Posts
306
Votes
Jacob Sherman
  • 12 Penns Trail Suite 138 Newtown, PA 18940
306
Votes |
1,380
Posts
Jacob Sherman
  • 12 Penns Trail Suite 138 Newtown, PA 18940
Replied

have you reached out to a real estate attorney ? 

Loading replies...