All Forum Posts by: Jeff Bridges

You kind of jumped the gun with the purchase in evaluating the entire picture prior to purchase, but it is what is right?:) Its generally a good idea to know the condition of a property or level of expected repairs so you can anticipate those repairs and build them into your bid for the property. I typically build in an inspection contingency into my offers (yes this reduces my competitiveness of my offers, but its also a safety net to protect my bottom line). I make a bid with a 10 day inspection contingency.  If accepted, I have my inspector inspect the property and provide me a report on the state of all systems and structural. then I use this report to build my scope of work and know what repairs need to be made. then I type out this list and solicit bids from 2-3 contractors/GCs/ handymen depending on the nature of the rehab. I do walkthroughs ASAP before end of 10 day period and try to get their quotes for the work needed. This allows me to make a full decision knowing the nature of the repairs, cost of repairs and have the ability to back out of my offer if there is a red flag or major foundation problem that increases my repair costs dramatically higher than I anticipated. Then I could review the order of the work they recommend with them with the contractor I choose. They usually know the order that is preferable based on the work you have planned. I would start by getting a foundation guy there to give you an estimate for his repairs. A regular GC might be able to assist with the remainder or all of the work to include foundation. Definitely get multiple bids both for cost comparison and rehab approach comparison. Everyone has a unique perspective on how to tackle an issue. good luck!

thanks again everyone for the feedback. I'm going to update the hardware, leave the cabs alone and only update the countertops with new laminate if there is any damage to the tops after clearing away all of the trash:) I'll try to post renovated photos in a month or so...

Thanks for your feedback! This needs to be optimized as a rental property and I'm not looking renovate to sell. I could make some enhancing repairs prior to a future sale to maximize the listing price, but I'm not considering those kind of enhancements at this time. The Kitchen Pantry is actually a walk-through pantry and was the former laundry closet. So the current tenant can leave bedroom 5 into the family room, then walk via the pantry (now a hallway to the kitchen and around down the hallway to the bathroom. Awkward, Yes! But they do not have to walk through any bedroom in order to access the bathroom.

Hey BP! I'm about to acquire a new SFH rental (single-story rancher) and it has an tricky layout due to an addition that wasn't thoughtfully planned out. I would appreciate your feedback on your thoughts for how to deal with this while keeping reno costs low. After all, this is a foreclosure and I have plenty of rehab tasks to the tune of 20-35k. I'm in the contractor bid phase so there is room for revision. Assuming you are not allowed to add/remove any walls and only remove doors, which ones would you remove? My thoughts are the max I could offer are 4 legal bedrooms and a "den"(labeled bedroom 4, no window in room, but has closet). The new addition is made up of the top three rooms. Before you respond, I acknowledge "bedroom 4" is not legal and not going to count toward the total advertised rooms. It still a usable living space if the tenant wishes to use it other than a den.

I was just pointing out the difference between a gas company "service plan" that will only repair but is not responsible for any replacement costs if its beyond repair, and a mainstream warranty company, who will repair but also replace if they are not able to repair (or more commonly, they have to repair something three times, drag their feet, kick and moan, and then maybe if you are lucky they replace it).

With warranty companies, I disagree about your understanding of the "network" of people they use. The network they use is simply licensed contractors in the area that they have signed up to participate and get referral service calls in addition to their normal business. The problem is they can neither employ nor can they compel their "network" of people to respond to service calls in a timely manner especially if their normal business busy and they dont need the low payout and high aggravation third party warranty service calls. This happened to me where we were in the high season, and HVAC techs will prioritize their direct customers and be unavailable to assist with the warranty company service requests.  result is, I don't get any service and my warranty plan isn't worth the paper it was written on...

what is your understanding?

this is a good site that reviews these companies. Most are still not worth it... you'll see the bad feedback all over...

http://www.reviews.com/home-warranty/

I tried to use warranty companies and trying to make a claim was painful and I never did get service and had to cancel and get refunded my premium (and doing a chargeback due to a lack of timely response). Those that do respond will try to find a loophole to decline your  claim like not doing adequate annual maintenance on your HVAC. They rely on third party contractors to fulfill the service call and established and reputable contractors never want to be part of the warranty company's network because the companies balk at paying for basic repairs for claim and don't pay the contractor promptly for work that they approve. Right now I have my HVAC on a service plan with my local energy company (BGE) for $252/year with no deductible for the service call and covers all parts/labor but will not cover the replacement of the entire unit like normal warranty. They have their own network of technicians and don't rely on third party workers so they can be prompt and fix the issue quickly. the whole house option is $588 to cover remaining appliances. it has no minimum maintenance requirements like regular warranties try to use to disallow a claim. I would check to see what service plan options exist with your electric/gas company and see if the cost is worth it. its worth 252/yr for my older HVAC units but 588 for the entire house gets a little pricey since you can replace an appliance per year with that money that would otherwise be spent on a service plan and it begins to favor the service plan company. I only cover equipment that is towards end of life and has greater chance to fail, otherwise if I buy brand new appliance, manufacturer provides a 1 year warranty and most credit cards doubles coverage for a 2nd year. I don't buy warranties for brand new HVAC.

You guys have good eyes. The ceiling register is actually missing on this foreclosure, so I was going to replace with white grille. The recessed lights I will replace with LED retrofits which cost 15 or less each so the ugly trim will be swapped out. Walls are all going to be painted with a beige/grey (sherman williams realist beige) that I've used on my other rentals. thanks for the feedback. I'm leaning toward counters, new bronze hardware pulls and leaving the cabinet faces alone besides cleaning them. Those were my biggest indecision....

I'm afraid the existing counters are not neutral enough. they look like they are original 1970s. Cheaper for my contractor to replace with in-stock home depot laminate than to resurface or fumble around with that. Could I get away with not re-painting the cabinets and just do new bronze cabinet pulls and new laminate? I agree with Colleen's feedback about the white everything being difficult to keep clean. thanks for the feedback thus far!!!!!

What do you think about doing for the below kitchen rehab? I was thinking new laminate, paint cabinets white and install new hardware which is in line with my PM recommendations? Will keep and clean up appliances. It will likely go market rate or section 8 in harford county, north of baltimore, MD. Rent is 1600-1700. Looking for most renter appeal and durability.

I'm looking for recommendations for licensed/insured general contractor to oversee renovations for a recent buy and hold acquisition in Edgewood, MD in Harford County. Work needed: Carpentry, kitchen/bathroom work, paint, flooring minor electrical and windows, Trash-out. Doesn't need much exterior work besides gutter clean out and lanscaping. Contractors based out of baltimore would work if they are willing to come out for the project. Work would start 4/25 or later for reference. Would prefer smaller outfit that has very competitive investor-friendly pricing. PM me if you don't prefer to share your recommendation publicly. All recommendations appreciated.