All Forum Posts by: Aaron Gorum

@Gregg Reinbold with an ARV of $125k you will cash out around $90k. $150k will give you $112k. I just cash out refinanced my rental in Auburn Al and they also took my renter history and lease into consideration, but if you are going to live there, that income should just help your debt/income ratio. But, I am not a lender not a financial expert, just talking from my deals.

Have you looked into a Title 1 loan. Its a HUD backed program. Also, there is a 203K refinance option that allows you to tie in rehab into the refinance. Have you given any thought to selling it off to an investor with the agreement that the rehab work would be done by you once you purchase your construction company?? Just thinking outside the box...

@Drayden Morgan I would highly recommend Keller Williams. They have the best training plan out there. They are also a technology company and provide that tech to you as part of your dues to help you succeed. They also set you up with mentors out the gate (you split commissions) for your first few sales/buys. 

They also have deals that help you purchase homes and their own mortgage company. I am still active duty and working with them here in RI. Call the front desk of your local branch and ask a few questions. Then call some others and see how they all compare. Its like dating, everyone likes something different.  

Also, if you are planning on getting out, take the RE license course now. Learn the law and marketing tactics. Buy Gary Keller's book, the Millionaire Real Estate Agent and then the Millionaire Real Estate Investor. Prepare that way, know your trade and not a script. 

Best of luck and hope to hear great things about you!

Not to hijack this thread, but can I get the invite to the RIREIG virtual meetup?

@Jeremy Pace counter tops are not installed yet. He wasn’t ready for them when they came to map the base. All repairs must be fixed prior to countertop installation.

@Jonathan Greer No, I feel if I knew more about codes I would have set expectations better for myself. Meant only to give credit to folks that I’m picking up knowledge from.

Had a conversation with the contractor today to air out our issues. He has agreed to fix all the issues with the exception of the ceiling. This was on me and an oversight that will haunt me with hind sight being 20/20 (but I won't make the mistake again). We agreed the new drywall ceiling would go up over the old plaster ceiling (me thinking there is no way the ceiling could have a bow). Had I requested the plaster be taken down completely, the ceiling would have been more level throughout. 

The erroneous holes inside the cabinets were made because he eye balled where the studs were supposed to be. Also, because one wall used to be the back of the house, but now has an addition. This should have been caught because he took down all drywall to do minor construction work to move an existing window. He will fix this with a mini-wax blend-fil wax pencil and blend to match the cabinet interior. If he is unable to fix to our satisfaction, he has offered to purchase new cabinets.

Several upper cabinets only had one screw due to him not reading the installation guide that comes with the cabinets. They specify the location and type of screw. He has added more screws into the studs IAW with the installation guide. One part that keeps irritating me is that he continues to use the wrong screws inside the cabinet. They call for pan head screws, he continues to use dry wall screws. Same size and length but totally different look once I googled pan head screw. I have them on order and will deduct from his overall bill once he installs them. 

The poly issues he owned up to not cleaning as he should prior to laying it down. He took full responsibility and offered for a cleaner to come into the house to continue to clean every wall and ceiling.

Code for RI is only one rail. He stated that he didn't install the other one because he didn't have to. He did state that he knew I wanted it prior to the start.

All in all I think this was a productive meeting and we will move forward starting next week. He fully understand and has agreed that he will not receive his last payment until we are completely satisfied. I didn't clarify this previously but this is our home until new orders come in 3 years, and the contractor lives right across the street from us! I think we will be able to come to an understanding.

Lessons learned to debrief from this experience (I know it isn't over):

Start with a very defined contract preferably with a Quality Assurance step prior to payment @Pat L.

Set quality standards from the start and be ready to move to another contractor at the first sign of non-communication or non-fulfillment of promises or not meeting the standards set@Brian Pulaski

Even though I was stationed in San Diego during this renovation in RI, I had plenty of Navy members that would have been more than happy to critique anyone else's work. @Bryan Devitt

Read more up on codes in the areas that I am conducting the renovations @Account Closed

No one brought this up, but something I have done through this process (and in my Navy career) always follow any conversation with an email dictating was was discussed and agreed upon and have the other party agree or make changes. This ensures a proper paper trail when things hit the roof. 

Thank you all for the feedback.

@Bryan Devitt I’m active duty navy. I was stationed in San Diego and moving during the renovation.

@Bill Kramer it wasn’t special cabinetry. There was a soffit built by the previous owner to accommodate his cabinets. Ours came straight from Home Depot.

We just finished a kitchen renovation around Newport RI and we aren’t happy with the quality of work provided.

First, the contractor ran way over timeline. I didn’t have a penalty for that because I thought a simple kitchen remodel shouldn’t take more than 9 weeks.

The oak flooring was stained. However several areas show slight bubbling and some areas have the new stain on the white cabinets. Also, the walls are still covered in saw dust from staining and finishing the floors.

He moved the basement stairway from the kitchen to the hallway to allow for the open concept design. The old stairs had two posts and two railings. He only installed one for some reason.

The kitchen cabinets were bought new and he only reported one damaged, setting us back another two weeks for manufacturing of a new section. He was not ready for counter installation and that costs a week and $200 (he is paying that). He had to build a new ceiling to make the cabinets work, but apparently the ceiling isn’t level and he used the bevel molding to shave down to make level instead of as the finishing touch it was supposed to be. Also the upper cabinets only have one set of screws holding them up. It took him apparent two time (every time) to find a stud. However, I don’t trust that the cabinets won’t fall once filled. There are no screws in the bottom cabinets. Finally the screws to adjoin the pieces of cabinetry isn’t there, leaving several noticeable gaps between them.

I haven’t paid the final payment to the contractor. I figured it’s the only leverage I have to get work completed to my satisfaction. My question is how long and how much would I be able to withhold for such poor craftsmanship.

Any actual help would be appreciated. Precedent would be the best! Take care.