All Forum Posts by: Calvin Lipscomb Jr

I do...

Calvin.  My husband was a renovation contractor at Walter Reed Army Medical Center for several years.  One of the things he used to say all the time to keep costs down was, have a plan, stick to the plan and above all else, practice redundancy.  You need to make sure you're actively involved in the process and NEVER let anyone have access to the checkbook meaning don't let the contractor go out and purchase everything.  Be on top of what they're doing.

By redundancy, he was saying that it makes it easier for not only this one, but the rest of the

Many rehabbers I know use that philosophy also.  Keep your colors the same for each unit.  Keep the  carpet the same so you can buy larger lots for a discount. Use a company like Sherwin Williams that will keep your color codes on file so the GC can just go in and order what they need rather than guess and make mistakes.  Get the cabinets from the same place for each unit and negotiate a bulk discount.  That goes with each phase whether you're doing the windows or doors etc...ask for discounts.  Don't just use companies like Lowes and Home Depot exclusively unless they give you discounts, but work with companies like Marjam and other local building supply houses that also give discounts for contractors.

@Calvin Lipscomb Jr Spend extensive time reviewing existing tenant files (i.e. application, background checks, leases), bring an inspector with you to walk the property during your due diligence, work with a broker to find out realistic rents compared to what is currently being paid and a plan on how to raise them.

Also, I would suggest not renovating all the units at once if they are currently leased but doing a slow rotation and then raising the rents as each unit is fixed up.

@Calvin Lipscomb Jr There’s only so much you’re going to learn on here and the majority of individuals on this site don’t even go into those areas. “Don’t go further west because of crime” is a very broad generalization that I see is misleading you already. There’s plenty of crime in south shore, while there are areas immediately west of there that are nicer than some suburban neighborhoods. Fly here, drive around, and get a feel for the areas you’re about to invest in.