All Forum Posts by: Adam Abdel-Hafez

Just because there are tunnels does not mean you have active termites. I have had many inspections of homes that had tunnels but the termites were not active. I also have dealt with homes that did have termites. I actually recently demoed and re-framed a garage due to a termite infestation. The garage door frame was sagging in a manner that the support header was almost about to fail. We demoed all the framing, I had my termite company come out and once they inspected it they said it was just contained to the garage. So they treated the garage, and I re-framed. I would definitely do this before you list it.

Labor and material are pretty much the same on a rehab. On repairs, you are mostly paying for labor as most repairs don't cost more than $50 in material unless it is a large repair. Doing the work yourself depends on your skill level if it makes sense for you to do repairs/rehabs. If it takes you all day to do misc repairs like replace doors, etc when a handyman could do it in a few hours then I would go with the handyman. You need to just evaluate how valuable your time is.

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@Yoni Rozenstein I would have to agree with the others on your capex. 2004 is a newer house, but keep in mind that means the water heater, hvac system, roof, etc are all 13 yrs old. So in the next few years, all of these will need to be replaced more than likely. 

Also,  if you don't have one already, I would love to recommend a management company to you for your acquisition. I am a third-party contractor for them, so I am a little biased.  They manage for a lot of out-of-state owners as well as out of country owners.

Shawn Pottschmidt you are referring to what is called re screen the hardwood floors. Basically they just buff, clean, and add a coat of poly on the floors.

I would assume if you did everything you originally listed, you are looking at $10-$15k rehab per unit

I work with a pm company in Atlanta and I setup a questionnaire to ask tenants every time they call in for every type of situation. For example, say they call in and say they have no hot water. We ask them do they have gas/electric, have they paid their bill (sad that we have to ask this), is the pilot light on, did you reset the breaker,etc. Soke situations are able to be resolved this way. We also ask for pictures for everything. This lets me know in more detail the problem and if they tenant is abusing the item to let them know they will be charged for repairs due to excessive wear and tear by the tenant. Going out to the property for every repair is really not necessary unless you will be doing the work yourself.

Sorry for the poor grammar, done by my iPhone

You are only do a rough and I mean rough estimate on houses when you look at them online. As previously stated, you do this to determine whether or not it is worth it to walk the property. Unfortunately, if you don't have any experience rehabbing then this will almost be impossible for you to do. You have to make a lot of assumptions on these which are known from past experiences, which you don't have. For instance, if I see a house online that needs to be renovated that was built in the 50's, I am already going to assume it has cast iron plumbing and I will have to replace it. So, I would put that in my estimate. You need to get experience rehabbing before you can get into estimates. I would also recommend both of I Scott's books, especially for a beginner.

Danny Carter rehabbing 4 units, replacing a roof, and structural repairs is a lot for $40k. I don't know your scope, but that sounds almost impossible. If the only structural issues is sistering in some joists, replacing plywood, and jacking up the house then that's not a big deal. But if it has anything to do with the foundation, that will more than likely blow your $40k budget.