Flip that Baby !

[James Kandasamy]

Hi BPers,

This is my latest rehab. One of biggest and ugliest house that i have purchased. The garage has ceiling damaged by water and everywhere else some kids has vandalize the house.  Found the deal through my direct marketing.   House has been vacant for past 5 years. That means....all mechanical items need to be replaced.

Smells money inside the house. Awesome deal in terms of numbers . The numbers are below 68% ARV after repairs and closing cost included. This is expected to be a Buy and Hold. I would do double close on this with hard money and later Conventional financing.

1 month rehab estimate but i am not rushing as it would be hard to find good tenants during Winter months anyway.  I usually do my own rehabs with subcontractor but in this case i am trying a General contractor with good credibility.  Its going to be beautiful after its done. Will post as the project continues.

James

[James Kandasamy]

Mid Way Rehab update 11/28/14. Location : Converse, San Antonio, TX.

- Removed pop corn from the ceiling. Done by GC

- Replaced damaged sheet rock except the garage. Done by GC

- Interior painting completed.  Done by GC

- Removed all trash from the house.....what a difference it makes in terms of interior energy. Done by GC

- Replace all boarded windows with new windows glass. Did with my own sub- contractors. Saved $1000.

- Installed new Fence on side side of the house. Tried asking the neightbor to share the cost but the neighbor was lecturing me about how he's making ends meet.  I just did it myself. Did with my own sub- contractors . Saved $500.

- Trimmed trees surrounding the house. Did with my own sub- contractors. Saved $300.

- Roof repairs. Did with my own sub- contractors.  Not sure how much we saved as we have reliable roofer.

- Installed cameras to ensure no vandalism . Had bad experience in the past when one of my house had the wires stolen during rehab. Also bought builders risk insurance rather than TDP rental insurances. The builder risk cover for up to months vacancy and stolen wire scenario.

One strategy that we use is to mingled the rehab with GC and my own Subs. We do that to minimize cost as i have established really good sub contractors for specific work like windows repair and tree trimming. The Fence repair sub is a new person who we found on craigslist. they gave us a great deal on the fence. Another well trusted carpenter gave me a quote for $100 less for the fence. I chose to go with the fence contractor as they are the specialist in fence. Same thing with the tree trimming nd windows repairs. They are the specialist in their area. Even though the GC will make our life easier by managing the specific work, nothing beats hiring the specific professionals. Work that needs a lot of co-ordination and working side by side like painting, sheetrock repair, popcorn removal , thrash hauling  better to be done by a GC as there is too much project management and too much Interdependencies between them. Just to let you know that this house is 120 miles aways from my city so need a balance between time and rehab cost.

Cool surprises. Electrical work came up 4K less as another electrician thought the 2nd floor copper wires were stolen as part of the vandalism.  

Next Steps

- Finish Exterior painting, install light/wall electrical fixtures, Install new toilets, vanities, new 3.5 ton AC. new appliances, resurface the counter top and fix.clean chimney.

- Start advertising for renters. This is expected to be interesting as we're entering into winter months.

Overall, this project seems to be one of the smoothest project we have done until now.. experience counts here. Will wait for completion to share my overall experience.

Happy Thanksgiving !

@Charmaine M.  @Frankie Woods 

@Tina Scarisbrick @Jayagowri Deenadayalan @Craig Harpestad