Rehab vs cosmetic renovation by Property management contractors

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Rehab vs cosmetic renovation by Property management contractors

Artur A.
Member since 2020 · 78 posts · 27 votes

Hi. I've recently bought an out-of-state rental property in Cincinnati, OH.

My property manager gave me a list of rehab items for the unit. What are your thoughts?:

I'm thinking about doing a rehab vs. just fixing & cosmetic renovation. With rehab, rents will increase by $200 and we'll be able to get a better tenant (in PM's opinion). 

What are your thoughts on cost (is it better to find and hire a contractor or go with PM's contractor)? Is it better to do a rehab or cosmetic renovation in terms of ROI and risks?

labor/Material rough estimate

Flooring(labor) : 2500

Flooring Material: 1.5 per sq feet + padding

Kitchen - 3000

Cabinet & counter top ( see/select home depot website)

Bathroom - 3000

Tile + Tub and fixtures ( see/select home depot website )

Electric - 1500 ( inside unit )

Electric Materials ( see/select home depot website

Plumbing - 1500 ( inside unit kitchen and bathrooms )

Plumbing Supplies see/select home depot website

Painting - 3000

Paint see/select home depot website

Windows ( replacements ) per window $450 all included

Cleaning - $350 final cleaning

Trash Out -$500 ( includes dumpster and dumping fee )

Appliances - 2000

// Total (without materials): 18’700 

From Inspection Report

Labor ONLY

3.3 - Repair gutters - $475

5.4 - Exhaustive fan (kitchen) - $350

5.7 - Dishwasher - replace ( $450 )

9.3 - water heater - fixed and fixed all the leaky gas lines - 2K

10.7 - replace all outlets - $2500

2.9 - Insulation not present (basement) -

4.1 Damaged drywall (wallboard contractor) - $ 750

4.2 - Wall - elevated moisture leaking window - replace window ?

6.0 Sinc is draining slowly (bathroom) - snake the sink - $350

6.1 Float on the flapper (Toilet) - $75

6.4 Exhaustive fan in bathroom - ??

7.4 Ventilation in bathroom - ??

9.1 - removing deadlines - $175

10.2 Grounding rod - have to check with electrician

10.6 Damaged fixture (fan) - $150

10.7 Replacing outlets

10.9 Smoke detectors - $150

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Kushaal Malde
Lender · San Francisco · Member since 2019 · 113 posts · 49 votes
4y

@Artur A. congrats on the purchase. What was your rehab budget going into the project? With this scope of work, it is best practice to get at least 3 different contractor bids, and you already have one from your PM. 

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  • Kushaal Malde
    Lender · San Francisco · Member since 2019 · 113 posts · 49 votes
    4y

    @Artur A. congrats on the purchase. What was your rehab budget going into the project? With this scope of work, it is best practice to get at least 3 different contractor bids, and you already have one from your PM. 

    1Reply
  • Artur A.
    OP
    Member since 2020 · 78 posts · 27 votes
    4y

    Thank you @Kushaal Malde

    0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    4y

    @Artur A. what data has your PMC supplied to support their recommendations? They should be able to send you several comparables, not just 1-2, that show what they claim.

    Also have an issue with them getting cabinets at Home Depot! Should only be done if matching something existing. Otherwise, they should have a dealers license , or have a contact that does, and be able to get better quality cabinets for the same price.

    Why are they replacing the tub?

    Why an exhaust fan in the kitchen and not an above-range microwave?

    $2k to replace all outlets? What's the price/unit? Material is less than a dollar and it take 5-10 minutes each!

    Why do you need insulation in a basement?

    $350 to snake a sink?

    Exhaust fan in bathroom should be under $450

    Smoke detectors no more than $50/each installed

    [email protected]248-209-6824
    Logical Property Management4.9458 Reviews
    WebsiteView Page
    1Reply
  • Artur A.
    OP
    Member since 2020 · 78 posts · 27 votes
    4y
    Quote from @Drew Sygit:

    @Artur A. what data has your PMC supplied to support their recommendations? They should be able to send you several comparables, not just 1-2, that show what they claim.

    Also have an issue with them getting cabinets at Home Depot! Should only be done if matching something existing. Otherwise, they should have a dealers license , or have a contact that does, and be able to get better quality cabinets for the same price.

    Why are they replacing the tub?

    Why an exhaust fan in the kitchen and not an above-range microwave?

    $2k to replace all outlets? What's the price/unit? Material is less than a dollar and it take 5-10 minutes each!

    Why do you need insulation in a basement?

    $350 to snake a sink?

    Exhaust fan in bathroom should be under $450

    Smoke detectors no more than $50/each installed

    Can you share your thoughts about the cost please?

    About data from PMC - I guess they have a remodeling and home improvement business. They shared 2 comparables (cosmetic rehab and remodeling)

    Regarding outlets - ungrounded outlets are in the inspection report. Take them out (ground 3 prong outlets). Plus grounding rod (6 rooms * 5 in the room)

    Regarding the snake - he said they need a long snake because it might be outside of the house 





     Updates for cosmetic rehab:

    labor/Material rough estimate
    Flooring - 3 rd floor take out the carpet and staples and paint - $1200

    Paint ( Need to be provided )

    Bathroom Caulk and grout reglaze the tub and sink - $650
    Reglaze Kit to be provided Plumbing - $250

    Plumbing Supplies see/select home depot websitePainting - 3000

    Paint see/select home depot website

    Use plexiglass for broken glass - $150 / per instance Plexi glass need to be provided Cleaning - $350 final cleaning
    Trash Out -$500 ( includes dumpster and dumping fee to the land fill ) - Sofa and Bed with frame

    From Inspection Report
    Labor ONLY

    3.3 - Repair gutters - $475

    5.7 - Dishwasher - replace ( $450 )

    4.1 Damaged drywall (wallboard contractor) - $ 750

    4.2 - Wall - elevated moisture leaking window - replace window = seal it silicone - $250

    6.0 Sinc is draining slowly (bathroom) - snake the sink - $350

    6.1 Float on the flapper (Toilet) - $75

    9.1 - removing deadlines - $175

    10.7 - replace all outlets - $2500
    6 outlets in each room (2.5 br)

    10.2 Grounding rod - have to check with electrician

    10.6 Damaged fixture (fan) - $150

    10.9 Smoke detectors - $150 (2.5 br)

    0Reply
  • Jordan Noble
    Real Estate Agent · Cincinnati, OH · Member since 2019 · 45 posts · 42 votes
    4y

    @Artur A.

    Would love to hear more details about this specific deal.  Neighborhood, current rental rate, purchase price?  That is another determining factor on how extensive you can get with your rehab and still get a return.  

    Overall though, the cost on these don't seem outragous by any means and are mainly functional fixes rather than going over the top on cosmetics so at face value this seems like you should be able to comfortably move forward with it

    1Reply
  • Artur A.
    OP
    Member since 2020 · 78 posts · 27 votes
    4y
    Quote from @Jordan Noble:

    @Artur A.

    Would love to hear more details about this specific deal.  Neighborhood, current rental rate, purchase price?  That is another determining factor on how extensive you can get with your rehab and still get a return.  

    Overall though, the cost on these don't seem outragous by any means and are mainly functional fixes rather than going over the top on cosmetics so at face value this seems like you should be able to comfortably move forward with it


     Thank you, Jordan

    0Reply
  • Artur A.
    OP
    Member since 2020 · 78 posts · 27 votes
    4y
    Quote from @Jordan Noble:

    @Artur A.

    Would love to hear more details about this specific deal.  Neighborhood, current rental rate, purchase price?  That is another determining factor on how extensive you can get with your rehab and still get a return.  

    Overall though, the cost on these don't seem outragous by any means and are mainly functional fixes rather than going over the top on cosmetics so at face value this seems like you should be able to comfortably move forward with it


    Norwood, 219k, Rents: 725+1200.

    Materials are not included
    Original Scope and Estimate - $12625

    0Reply
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