All Forum Posts by: Daniel Petta

I would recommend you give a local mortgage broker a call and ask them to try and find you some financing offers.

@Daniel Petta: You have received great suggestions so far. I would add that IF the quads are individually parceled, you may be able to get individual residential or DSCR loans on each quad. This is more administratively burdensome but at least an option.

Hi Daniel! I happen to know a lender that may be able to finance your deal. Would you like me to ask them if your property might be approved?

@Daniel Petta The costs for different rehab items varies by location. Example, in Houston a re-roof is roughly $200 per square of roof. Only if the roof is not 2 story or steep. Electric is approx $90-$95/hr. Contractors charge more if they know you are an investor.

I'm a young, new real estate investor and the area I live in is too expensive for me to start purchasing rental properties locally. I've done some market research and landed on Racine as a great area to start my first BRRR. Since this is out of state for me, I'm looking to get in touch with an entire team out in Racine. Does anyone know property managers, real estate agents, and/or contractors in Racine who would be willing to chat?

Thanks everyone! (Also, I'm new to Bigger Pockets forums so please let me know if this post is more appropriate elsewhere)

@Daniel Petta The ONLY WAY to accurately calculate rehab costs is by walking the property. You'll want to develop a scope of work for each room and write (or type) notes for issues you find. After that you start pricing materials and factor in labor (the most expensive aspect) to complete the renovations. Finding contractors is huge. I don't have advice for that because I'm not in your market. I took the approach to learn some skills, DIY, and hire contractors for big ticket items. Your approach could be different but that's why distressed properties are fun.

You'll find real quick the best deals do NOT REQUIRE massive rehab. Kitchens, baths, flooring, HVAC, water heaters, and roofs are a must fix but if you're new to flipping or remodeling don't buy a challenging property. You'll find more surprises (every property has them) that cost you money and more importantly time. The longer it sits empty the more it costs you. 

If you're buying for cash-flow renovate with durable materials that look OK and be happy with boring finishes. It's a rental property so renovate it and run it like a business. You'll increase the value either way if you bought it correctly. Make sure the breakable/ touchable plumbing fixtures are new. That's where you'll get water leaks in the future. Replace the doors and locks. The hinges and door frames get beat up after years of abuse. Actually repair and test things on tenant turnovers. You'll fix issues before they break on Sunday evening at 9pm. Cheers.  

Others that know how to hammer a nail on here may have a better idea, but I would start by building relationships with local contractors. Having a good partnership can go a long way not only for this property but for others in the future. They can give you a ballpark on cost for construction. Also, I would ping your local REI meetings for those that have done similar work. Based on your area, labor cost can be the biggest difference in expenses.