All Forum Posts by: Account Closed

I have ran my own numbers and I feel like I am getting a really good deal here, but I would like you seasoned rehabbers to let me know your take on it.

To give a little background....This is a lower end neighborhood, so I will be using lower end items of course. All of the things that are being bought will be new though, if that makes any sense.

JOB ITEMS:

I. LIVING ROOM $117.33
*1. Carpet
2. Ceiling fan
3. Remove Chair Rail
4. Paint
5. Mini Blind
6. Clean brick fireplace
7. (5) outlets, (1) 2 gang switch covers

II. STUDY/OFFICE $306.24
1. Replace french entry doors/glass
2. Replace closet doors
*3. Repair lower left wall
4. Door trim
*5. Paint
6. (4) outlets & (1) light switch covers
*7. Floor
8. Ceiling fan
9. (2) door knobs

III. KITCHEN $2618.56
*1. Repair floor & washroom
2. New "over the range" microwave
3. New faucet w/ sprayer
4. New countertop
5. New door (3 hinge)
6. Wash closet door
7. Trim washer conn. Box
8. Drop light fixture
9. Fluorescent light fixture wash closet
10. Dishwasher
*11. Paint
12. Mini blind
13. Luann panel on cabinet
*14. Repair wall corner
15. (7) outlets, (2) switch, (1) 2gang switch covers
16. Paint light rings & register
17. Drawer handle
*18. Paint on cabinet doors
19. Pantry door knob

IV. MASTER BEDROOM $237.06
*1.Repair holes/patches in wall
*2. Paint ceiling white
*3. Paint walls
4. Mini blinds
5. New double French doors
6. (4) holes in wall
*7. Floor tiles/keeping tile
8. (2) door knobs

V. MASTER BATH $460.06
1. New faucet w/ pop-U
*2. Paint ceiling white
3. 1st closet door
4. 2nd closet door
*5. Paint walls
*6. Patch walls
*7. Paint trim
8. Door knob
9. (3) switch, (1) outlet, (1) switch covers
*10. Tiles at closet doors
11. Paint cabinet
12. Shower head & hardware
13. Mini blind

VI. 1ST BEDROOM $260.88
*1 Carpet
2. Closet door
*3. Repair holes in walls
*4. Paint
5. New ceiling fan
6. Mini blind
7. (4) outlets (1) switch covers
8. New door
9. New door knob & closet knob

VII. 2ND BEDROOM $247.89
*1. Carpet
2. New door
3. New closet door
4. Repair ceiling
*5. Paint
6. New ceiling fan
7. New door knobs
8. (2) closet door knobs
9. (4) outlets, (1) switch covers
10. Mini blinds

VIII. OUTSIDE $2,346.24
1. New shutters (8)
*2. Paint
3. New Lg. 3 part window
4. New fence in back
5. New gutter above front door only
6. Powerwash brick & siding
7. Missing facia siding
8. Post on back
9. Inside corner siding
10. New screen door back
11. New screen door front
12. Rear outside light fixture
13. New front entry light fix.
14. New post on front porch
15. Screens for windows for front
16. Garage door trim
17. Garage door repair
18. Garage door opener

IX. GARAGE $21.65
*1. Paint walls
2.door knob

X. HALL BATH $422.17
*1. Paint ceiling
*2. Paint wall
*3. Demo floor tile
*4. New floor tiles
5. Reinstall appr. 35 wall tiles
6. New light fixture
7. Replace (2) window panes
8. New a/c vent
9. Ceramic soap dish
10. Toilet /toilet seat
11. Ceramic towel rack
12. Outlet/switch covers
13. Tissue holder
14. new door
15. Door knob
16. Shower head & hardware

XI. HALLWAY $119.08
1. Door on closet
2. Light fixture
*3. Carpet
4. (2) closed door knobs
5. Door bell

XII. DINING RM $178.61
*1. New flooring tile
2. Drop down light fixture
3. Replace (1) mini blinds
4. Outlets/switches covers
*5. Paint
6. Ext door knob & deadbolt

XIII. ENTRY $106.08
*1. 5'8"x4'8 1/8" floor
2. ceiling light Fixture
*3. Hole in wall
*4. Paint
5. Ext. Door knob & deadbolt
6. Closet door knob
7. One 2gang switch cover
*8. Ceiling repair

$2,461.32 *price covers items below
ALL INT. PAINT
ALL EXT. PAINT
WALL/CEILING REPAIR
ALL FLOOR TILE & LABOR
ALL CARPET & PADDING & LABOR
WALL TILE

MATERIAL $9,903.17
LABOR $10,000.00

TOTAL $19,903.17

Looks like a great deal. I would be concerned with the quality of work that they will do (ex. cheap paint shows). I would ask them for and check several references to see what quality of work they do to ensure it's to your expectations.

0 Votes

I believe that the best way to accumulate wealth in the United States is to hold real estate investments for long periods of time.

80% of the landmass of the United States is held either by the government or is in agricultural use. That leaves only one fifth of the area to support all commercial and residential uses, including the infrastructure that is the backbone of commerce. The population density of the U.S. in 2010 was approximately 90% per square mile, but effectively we are supporting 400 persons per square mile for most of our improved land uses (adjusting for farming and gov't).

Between 2005 and 2020, census projections show and increase of more than 40 million Americans, which will bring effective population density above 450 persons per square mile. The 2010 census indicated that 79% of the U.S. population is concentrated in urban areas, a proportion that continues to increase over time. As intensity of land use increases, The upward pressure on real estate values is a persistent feature of the national economy.

0 Votes

@Steve Candor

How old is HVAC system? What condition is it in?

Is this your first four plex? If so, I think you might be surprised how much more property managements presence you'll need, especially for property built in early 1900s.

0 Votes

@Bryan N.

You can outsources these things, but make sure you're reviewing everything to ensure it's being done right (it rarely is). My experience is the job is rarely done to my standards, so I have a light a fire under then quite a bit. It is rational for them to do the minimum amount of work possible to get paid.

0 Votes

@Bryan N.

NO, never. Trust, but VERIFY everything yourself.

Think about it. There's a reason why agents are agents, and most are not investors.

You will always care more about your investments than anybody else.

1 Vote

@Keith K.

Demand.

Real estate values are impacted by supply and demand. Supply and demand for real estate is impacted mainly by population growth and job growth. Larger cities will generally have more employment opportunities and more of a mix of different types of employment (although not always...ex. Las Vegas). Small cities will not have as strong a demand for housing as large cities. These are mainly the reasons why investors focus on larger cities.

That said, if you're less focused on appreciation, can generate cash flow in a market, and have a solid property management model, go for it! I'm sure there are plenty of investors on BP making good money in smaller markets.

1 Vote

Originally posted by @Steve Candor:

4 family fully occupied. I believe I can get the rents up when they leave specifically the 3 bedrooms as I think they are under market.

current ask 145k

Electric 20/month

Water 140 month (seems low?? but owner provided)

Taxes 3k a year

1bed 475

1bed 425

3bed 575

3bed 625

These are the current rents. I think I can get the the 3bed at 700. And the 1bed to 500

How are you going to manage this?

What are the property management fees?

It is a small # of units, so cost will be a greater proportion of revenue than larger buildings. Or are you planning to move? You might be forced to if management doesn't go as expected. FYI: property management on smaller unit properties are more difficult than with 60+ unit deals.

This is all utilities paid by owner?

Do buildings around this also offer all utilities paid?

Individually metered for electric?

Any way to have the tenants pay utilities or setup a RUBS system?

Yes, water seems low.

When was it built? What type of HVAC does it have?

If old, you might have to spend a good chunk of change on HVAC.

0 Votes

All Forum Posts by: Account Closed

Account Closed has started 40 posts and replied 518 times.

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Post: 4 family asking 145k