Finally some speaks up! I thought I was alone on that one. Glad to here a professional electrician speak his mind and look to future posts from you Heathen. Welcome to the site.

This is absurdly false. Residential wiring is much more involved and code intensive than commercial wiring. It is very easy to make a residential electrician into a commercial, but very difficult to go the other way. It makes logical sense, too, that the residential code would be more forebearing. Most electricians actually do not know how to wire, or repair the electrical, in a home. They have done commerical all of their lives. The apprenticeship curriculum of federally recognized programs cover less that 1 semester (less than 1 of 8) on ressy wiring. I am not here to toot my own horn, but this is my world. I live it. And, am proud to contribute my knowledge to this forum. Some of my credentials (very briefly): Electrical Engineer from Lehigh University Licensed Journeyman Electrican President / CEO of CM Squared, Inc. (Full Service Electricians) President of Central PA Chapter of the Independent Electrical Contractors Past Apprenticeship & Training Chair of IEC Nationally Acclaimed Instructor for the NAHB PS - I am not here seeking work and only work in Central PA

The comps I've seen... I just followed up with asking anyone I thought knew more then me about pricing.

I thought you came up with the valuation yourself from comps you had seen. I would never trust someone else's numbers. I always do my own research to determine ARV. If someone else told you it would be worth 300k after you were done I would ask them to back that number up with some documentation. God who knows how they come up with that number....they could of just asked Amerikotes brother for his opinion to come up with that number. :lol: :lol: Check on that number!

You don't think they were blowing smoke on the valuation in hopes that maybe I would list with them upon completion?!

I think he was refering to the same thing I spoke about. Looking at the rents it's value should be around $165k but you are saying comps are in the $300k thus the two aren't lining up. It's possible that comps are selling for that $300k but that doesn't make those comps a good investment either. It happens here in the Chicago market all the time. I don't see how some of these landlords make any money but some markets just get overpriced like that. Maybe your market is that way too, I don't know.

REI, what do you mean by the rents not lining up? Like I said in a earlier post... those values are coming from real estate agents and area comps. The rents are based on what I know I can get in the area based on my other building.

I am not sure about the numbers. Sticking to the high level version... Based on the future value have you considered construction financing from the bank? They would pay off the 1st and then fund the work. If you are offering the place for $80K and expect the repairs to be about the same a new buyer would be in for $160+. If the place is really worth $300K to $400K that sounds OK. Not sure that the rents line up. I also can not tell what repairs are optional given the idea that you might be expanding to 6 units. Something is off if no one is interested in buying. Consider selling a partial stake or doing a joint venture with a contractor. Creative and open to problems if you use the wrong structure. Think out of the box or just drop the price to clear the asset off your books.

Sorry... I forgot to answer this part of your reply. Its been listed since late December. I've had under 10 showings. I don't remember exactly how many have been here but I've probably had an average of 1 a week. There is no doubt that I'm a little high on the price at 80k, but since there is a mortgage on the property I wanted to be able to have some wiggle room to work out a deal without losing money.

I'm going to have to look into that more and ask around. I'm going based on what I've been told by 3 or 4 realtors realtors and area comps. As for how confident I am in my costs... pretty confident. If anything I've often thought maybe I had it too padded and as a result too inflated. I've had the last 2 years thinking and talking about it. I've also had a couple of people who I would consider to know more about this then I do tell me "its a $80k to $100k job". I wasn't going with a contractor for the job... instead I had all my trades people picked and my brother was going to over see (and do some of the work that he can do) the rehab.

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Updated almost 17 years ago, 02/23/2008

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Tim WardPoster

Renter
Saint John

Rehabbing & House Flipping

What would you do?

Tim WardPoster

Renter
Saint John

Posted August 03, 2008 10:47

Hi Everyone!

I have a 5800sq ft, 4 unit apartment building in New Brunswick, Canada that I bought a couple of years ago. The building is quite old and has lots of old/dated wiring that has made it un-rentable until it is rewired.

With all my quotes... I'm looking at about $90k to $100k to renovate the building. There is mortgage of around $60k that I assumed as part of the deal on the building. Upon completion it should have a sale value of $300k and upwards of $400k if we make it a 6 unit building.

I don't have enough equity in my other building to cover my costs and I've been spreading the word whenever I can to let people know that I'm open to ideas. I really need to get this place fixed and/or out of my hair.

What would you do? Does anyone on here have any advice that would be related to my situation in Canada?

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