All Forum Posts by: Account Closed

Hi,

Im about to start a rehab project on a single family home in Philadelphia, and I really need to have a good contract. Anyone have any ideas where I might be able to get this? Of perhaps get some answers to the following:

Im concerned about 

• the contractor finishing on time, 
• making sure I only pay him for work that has been performed, and not work he has yet to perform
• making sure he is liable for work performed which isnt satisfactory,
• making sure he performs all the work we agreed upon
• ensuring his workers are insured, licensed professionals.
• Id like a termination clause if he fails miserably
• a written lien waiver upon full payment

And im wondering about how to handle it when things (inevitably) go wrong. Should I include a time and materials with a guaranteed maximum?

Anything I havent thought of? Im a rookie here so I NEED YOUR HELP!!

Thanks all

-Bryan

@Bill Jacobsen @William Baumann 

Ive secured a 30 year fixed loan in my own name for 3.75%

Taxes are 1250

Insurance is 560

I calculate the mortgage to be $830/month...

The place is recently rehabbed. My plan is:

I am going to live in it until I update a few minor areas and have the roof repaired. I plan to: install custom closets, tile floor in bathroom, sand and repaint kitchen cabinets.

After this  rent it. Then move on.

Assuming I do much of the work, I can spend 10k and get the rent to $1250, that leaves $400/month to build a cushion for expenses.

(probably more but I want to be conservative)

its not 50%, but the place is in good shape and next anticipated expense is new heater in 3-10 years...

What other information would help people get a picture of how bad / good this one is...

Looking at a house in the 19119 area.

This one is a three bedroom (really two bedrooms and an office) one and a half bath with a small yard.

I'm thinking of offering 140,000 with a zero down loan and tying all purchase costs into the loan, bringing the mortgage to 155,000, with a monthly payment of $830 which includes taxes and insurance.

It needs some roof work, Im going to refinish the cabinets, and change the closets around. All told probably under $10,000 in renovations.

Rents are in the $1250's....

Does this make sense? I feel like its a winner. Am I wrong?

Any Advice is hugely helpful for this NEWBIE!!

Great info on here. I have some concerns about using land contracts. I have read that (among other problems) if there is an underlying mortgage (ie seller isn't free and clear) the holder of that mortgage can demand full payment if a land contract is enacted.

That pretty much undermines that entire reason for the land contract...since now the buyer would once again need financing to retain the property...

As I said, there are other problems, but this one seems to be the most likely to occur and the most damaging.

Thoughts?

Thanks all, some really good thoughts on here.

Can anyone help me with how to determine cost / sf to build in an area? In this case the south shore of Massachusetts.

Or, perhaps there is a better location on this forum to place such a question?

New guy trying to get a feel for things! Thanks!

Hi all

I have a property in a beach community in Massachusetts which I want to move on. The price is 70k, and its in really bad shape. Houses in the area sell for 400k.

I think the best course is to level the structure down to the slab. I have to keep the slab in place because the town doesn't allow this type of use in this area anymore as new construction. But if the slab stays I can rebuild.

I've been quoted 8k to have the home (its really just a shell) totally demoed and all the debris hauled out of my life.

Im wondering if I should just demo and sell the lot, or if I should try to partner with a contractor who will build a home which we will sell then spilt the profits with him.

thoughts?

THANKS!