All Forum Posts by: Matt Blutowski

I need some advice estimating rehab cost!

I'm buying a duplex in an area that has appreciated quickly over the past 5 years. I had initially anticipated making repairs to the house then holding it as a rental, but am also considering flipping it after rehabbing back to a single family.

I have great recent comps and know a sales price range at about 150% - 200% more than the purchase price. I just don't have enough experience estimating costs. Any rough estimates would be appreciated - what have similar rehabs costs you?

The Property:
Good:
2,500 square feet. Double-wall brick, 3 stories. new roof, great foundation, newer wiring and furnace. Previous owner ran 2nd sewer stack and utilities to 3rd floor. Excellent location with parking and a larger yard. Area for roof top terrace off of the 3rd floor.

Bad:
Bricks need repointed on one corner, two-stall garage has walls but no roof. HVAC doesn't adequately serve the 3rd floor. half of windows are old.

Ugly:
staircase from 1st to 2nd floor ruins the layout and must be moved - this will open the space on first and second floor. New dry wall in 50% of the home, all new hardwood/tile flooring, 2 current bathrooms need complete update. A new master bath would be built. First floor kitchen needs complete update. 1/2 bath installed. New lighting, likely some new wiring needed. Yard is a mess and needs landscaping.

I'm sure many of you have had similar jobs - what did it cost you?? I'm interested in rough estimates and ranges - a place to start. Thanks!

By the end of the day, I think I'll have an accepted offer on a duplex in a trendy part of town. The building has three units, though it only has occupancy for two units. The property needs some work before it can be rented. The seller wanted to move quickly so I made a cash offer. I plan to fix, then rent and hold the property. I'll refinance the property once repairs are made. I'd appreciate any feedback on my numbers.

The purchase price was $110,000. I estimate $10,000 in repairs to re-point bricks, interior water damage, roof on a garage, other smaller repairs & over-runs.

The first floor single bedroom will rent for $750, the two bedroom second floor will rent for $950. The third floor single bedroom would rent for $550 - if I can get an occupancy permit for a third unit. If I can't get it, I'll convert to a 3 bedroom which will increase the rent by $250. I can get at least $100 for the garage.

PITI after repairs and refinancing 70% will be ~ $1100 tp 1350. Monthly rents will be from $1900 to $2350.

The repairs:

A 20' by 20' section (roughly) of bricks needs re-pointed, and the there is some water damage from water seeping between bricks on one corner of the house. The walls to a 2 car garage are there, but the cement ceiling is long gone. The utilities are NOT separate and the 2nd & 3rd units don't have access to to the basement.

I would like to split the utilities, or at least split the electric and install electric heating in the upstairs units. I have no experience with this and don't know what is possible - maybe I can run electrical up the walls that I'm repairing? This would add to my cost estimate mentioned above.

I would also like to get the third floor unit legal. How much trouble will I make for myself if I don't bother with getting a new occupancy agreement? The 3rd floor does not have a fire exit - but there is an accessible flat roof that could hold a deck and stairs down to the 2nd floor rear deck. Again, this would add to my estimated costs.

I will do much of the work myself, but will have a contractor repair most of the brickwork.

This is my 2nd property, and first time I've bought something that needed work, and the first time I've bought with cash. I am particularly interested in peoples positive experiences with splitting utilities, adding a unit (legally), re-pointing and my numbers.

By the end of the day, I think I'll have an accepted offer on a duplex in a trendy part of town. The building has three units, though it only has occupancy for two units. The property needs some work before it can be rented. The seller wanted to move quickly so I made a cash offer. I plan to fix, then rent and hold the property. I'll refinance the property once repairs are made. I'd appreciate any feedback on my numbers.

The purchase price was $110,000. I estimate $10,000 in repairs to re-point bricks, interior water damage, roof on a garage, other smaller repairs & over-runs.

The first floor single bedroom will rent for $750, the two bedroom second floor will rent for $950. The third floor single bedroom would rent for $550 - if I can get an occupancy permit for a third unit. If I can't get it, I'll convert to a 3 bedroom which will increase the rent by $250. I can get at least $100 for the garage.

PITI after repairs and refinancing 70% will be ~ $1100 tp 1350. Monthly rents will be from $1900 to $2350.

The repairs:

A 20' by 20' section (roughly) of bricks needs re-pointed, and the there is some water damage from water seeping between bricks on one corner of the house. The walls to a 2 car garage are there, but the cement ceiling is long gone. The utilities are NOT separate and the 2nd & 3rd units don't have access to to the basement.

I would like to split the utilities, or at least split the electric and install electric heating in the upstairs units. I have no experience with this and don't know what is possible - maybe I can run electrical up the walls that I'm repairing? This would add to my cost estimate mentioned above.

I would also like to get the third floor unit legal. How much trouble will I make for myself if I don't bother with getting a new occupancy agreement? The 3rd floor does not have a fire exit - but there is an accessible flat roof that could hold a deck and stairs down to the 2nd floor rear deck. Again, this would add to my estimated costs.

I will do much of the work myself, but will have a contractor repair most of the brickwork.

This is my 2nd property, and first time I've bought something that needed work, and the first time I've bought with cash. I am particularly interested in peoples positive experiences with splitting utilities, adding a unit (legally), re-pointing and my numbers.

I feel the tenants are collectible, they are both younger professionals with steady jobs.

I will offer them the easy way - give me back the air conditioners plus $100 to patch a hole in a wall, or go to court where I will ask for $1,300.

I am concerned about two things:
1. Will this guy throw the air conditioners around before returning them, and
2. Will this guy vandalize the property to pay me back.

I can check the air conditioners, but #2 is a concern. This guy is college educated, clean cut, good looking but has a long and fairly violent record...

Thank you, everyone.
Our dispute arose on Thursday last week. I have requested that we speak tomorrow to settle the dispute amicably. I hope he makes things right, if not I will take the advice here. If I tell him I will report the air conditioners as stolen, he might act - he has a fairly substantial criminal record.

The tenants had a 1 year lease, I purchased half way through.

I had 1 months rent as deposit, which was what the previous owners had collected and passed to me. Because they paid no rent for April, I had no deposit.

Both tenants that are involved have jobs, and enough money to pay up. The guy who is the problem has been trying to buy land, so I assume he would be hurt badly by a credit issue.

I inherited tenants 6 months ago, and finally the lease ended and they are out.

Along the way, the tenants refused to pay an extra fee for a pet they were keeping, didn't pay the last month rent, left a hole in the dry wall form a kick or punch, vacated the apartment two days late and left a mess.

Two of them also walked off with three window unit air conditioners - two of them were just 1.5 years old. The tenant claims they were his.

I have photos of the air conditioners, have a sales agreement with the units included, have talked to the property manager and one of the tenants - all agree that the air conditioners are mine. I also have photos of the mess they made.

I had asked $100 to repair the dry wall, but with the theft of the air conditioners I am considering legal help. I just don't want my urge to get even to cause me to make a bad business decision. Do I let it go, or sue?

If I sue, I believe I could ask for the last months rent, late fee, fee for moving out two days late, the $50/month they never paid for the pet, and an amount for the air conditioner. I have paperwork from months ago showing I asked for a pet deposit and monthly fee (consistent with the lease) once I discovered they were keeping a cat.

This is at least a good learning experience - I don't think I'll ever inherit tentants again!

Brand?! I haven't been a landlord for more than a few weeks! :D But you're right, and I appreciate that you shared an outlook I'd like to model. I also agree with Ralph - I have no proof, only strong suspicion and a past criminal record.

I also agree that I have a great contact in my friend. He knows the area, the dealers, the scene, the law. If the tenant is dealing, I have options. With the feedback here, I have a better understanding of the best path forward.

Good advice, several points taken. I did get involved upstairs, but I'm glad I did. Now I have a better idea who/what I'm dealing with, and I have three tenants willing to pay and put this to rest.

The first unit is another story. I've have mentioned the dog and am using it as leverage - I want him to pay on time and be quiet. The dog can't weigh 10 pounds. I will tell them I'm scheduling a pest inspection. I'm considering having my handy-man/ county narcotics detective friend do the inspection for me. He works for free and knows how to spot roaches.

Other than that, my preference is to take the rent and not renew the lease. At the first issue, I'll give notice. I appreciate the feedback given, truly.

Thanks Kevin,
I was concerned about my liability, so I contacted a good friend who put me at ease. I'm not liable in this case. My friend has the experience to know about legal issues related to drugs. My friend did say that I could have a busted front/back door, or even more seriously a dead body - that would be a disaster (according to my friend). They advised I either give them a name to investigate, or wait until I have a problem to pursue this. I'm not interested in having this person busted, I'm just looking to avoid trouble. I just don't know which is less trouble, having a drug dealer or evicting one...