All Forum Posts by: Beau Wollens

 Dang, I hope he bought it! Seems like a no home run opportunity after reading your post. 

@Beau Wollens A bit late to reply, but please tell me you bought this deal. A 3BR, 1.5BA in the South End—just the land alone is worth more than $175K. You could have picked it up, flipped it right back on the market for $300K without lifting a finger, or done a basic builder-grade renovation and sold it for $625K+.

Also, most homes in the South End fall under RMF or R6 multifamily zoning. If the lot is at or near 6,000 sq. ft., there’s a strong chance you could legally convert to a two-family. Right now, the average two-family sale in Stamford is $818K—and that’s not even for a newly finished one.

Good luck if this opportunity is still around. Feel free to reach out if I can help in any way.

Hey @Beau Wollens.  Welcome to BiggerPockets.  You are correct that there is a lot of variability in prices.  Even from contractors on a project you can get quotes that vary by 50% or more.  The big thing that determines the price is what actually has to be done and the finishes that you select.

I know you said it is a gut remodel but are the floors still good?  Is the layout still good or are you moving lots of walls?  Is the roof good?  Is the foundation good?  If the foundation is good, the roof is good, the floors are good, the layout is good, you are probably saving at least $100k right there in labor/materials.

The other thing that frequents adds a lot of cost is when the unknown occurs.  We had an underground oil tank that we thought was a 270 gallon.  It ended up being about 1000 gallons.  Removing it cost us an additional $5k over our estimate.  When you have things that you do not know how bad they are until you open up pandora's box, it is hard to perfectly predict the cost.

I'd be happy to have a more in-depth conversation if interested.  DM me if interested.  I'd love to share whatever advice I can.

@Beau Wollens

just curious - why aren't you being "allowed" to do an inspection?  and even if you aren't going to do an inspection, can you walk it with a couple contractors?

bottom line - you can't use a square foot estimate... you need a bottoms up estimate as @Samuel Eddinger alluded to.  

so... clean-out and demo? furnace? roof?  water heater?  doors?  windows?  floors?  carpet?  bathroom(s)?  kitchen?  appliances?  basement?  electrical?  landscaping? etc.

and - you need to copy comps.  so - what are the comps selling for, and what features do they have?  you copy those features and you (hopefully) get that price. 

Quote from @Beau Wollens:

Hey Everyone,

I am an extremely novice real estate investor looking for some advice on an opportunity I have on the table. I have the option to buy a 1,300-sqft 3-bed, 1.5-bath house in South End neighborhood of Stamford, CT, from a family member before it goes on the market. The past tenant was a hoarder and the apartment has not been lived in or touched since 1999 (26 years)! 

I have been told by a contractor that the foundation of the building is intact, so it does not need to be torn down but requires a "gut renovation down to the studs." After some research online, I am reading that the cost per square foot on a gut renovation of this nature in Stamford CT is anywhere from $150-$350, which is ultimately not very helpful, because at $150 per sq ft, this is a very appealing project with a total profit of ~$175K (46% ROI) and at $350 per sq ft, it very much isn't, because it would be a net loss of 83K (haha).

QUESTIONS:

What can I do refine my estimate a bit given that I am not allowed to a formal inspection on the property? 

Can anyone share a breakdown or budget for a similar project in a similar area? What were the biggest line items? How does this number breakdown? 

What are the largest pitfalls one may run into that turn this from a 150 to 350 ordeal? Is this price differential largely a matter of how high-end you make the finishes? Or is it other factors? 

Does the cost per sqft account for electric and plumbing? 

If you are familiar with this area, any further recommendations or resources you are willing to provide, I am super grateful. 

Here are the numbers I put together. Feel free to share any thoughts you have here as well.

 Welcome! Very cool that you are analyzing a deal that might work for you. As you mentioned, that expense range is not super helpful. 

Are you under contract? Why wouldn't you be able to have a formal inspection? 

Hi Bigger Pockets,

I purchased a condo in the bay area this year living as an owner-occupant with housemates. While it's not a big fixer-upper, I am renovating - three steps in with BRR!

I need help with Quickbooks accounting for the rental property. The entry-level Quickbooks Online software itself is expensive $250/yr... that's not even adding up potential books/courses, CPA fees or personal tax filing software like Turbo Tax. Outrageous!

I am diligently saving/scanning/uploading receipts & importing transactions from a rental-specific-checking linked bank account.

I've found two websites that are supposed to help with Quickbooks for rental properties:

[OLD] https://landlordaccounting.com... only... $99)

[REALLY NEW] https://www.incomedigs.com/&nb... online, seems good but so new... also $600 for the bootcamp) 

These fees above include books/video courses & chart of accounts download but do not include any personal help with setting things up, in-person instruction, or ongoing maintenance.

Does anybody have any recommendations for setting up Quickbooks Online the right (and affordable) way? Any recommendations on CPAs? 

I'm not against spending $500 to do this right the first time but that just seems expensive for self-taught approach.

Thanks,

Ryan