All Forum Posts by: David de Luna

Respond with the truth - what the exterminator told you, plus a reminder about the lease terms. Having said that, if it were me, I'd also add that if it's temporary, I'm fine with the rabbit, but based on the exterminator report, it does appear that the rabbit is contributing to the problem. Any more mouse extermination appts she must cover, out of fairness. That's the compromise for you making a lease exception. The other option is we all stick to the terms of the lease. Get rid of the rabbit and you pay for the extermination visits, but not the next one or two as they will be to clean up after the rabbit.

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The one who will pay extra for it. ;-)

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I agree with @Ryan B - Call his bluff. It actually works to your advantage if the wording in the lease states that if any party terminates, the entire lease terminates, then you're fine. Of course, that fact alone won't actually get the other guy out of the unit. It still sounds like the other buy might become gum on your shoe, unfortunately.

1 Vote

Only your PM can answer the questions on fees for doing evictions. Every PM is different. I will say I like your 7% and the fee for filling your unit. Awfully low. I can't be bothered paying all the bills - property tax, utilities, city fees, filling out Section 8 applications to work with various agencies, but I have a wonderful wife who is willing to do that. Without my wife, I'm pretty sure I'd see the wisdom in paying someone to make sure it gets done. I have out of state rentals that I use a PM for. To me it's worth it. There's no simple equation that will dictate one direction or the other. That's up to you.

2 Votes

I have property here in the bay area that I self-manage. I got my plumber, electrician, etc, on speed-dial so it's not a big deal and after 2 years of maintenance experience on these ones, it would be a waste of money to hand off to a PM. I have properties out of state that I use a PM for, and the cost is much less ($1700 for a 1 bed in the bay area, $700 for a 1 bed in KCMO) and I'm too far away to want to hustle up a plumber or electrician on a Sunday so it's worth my while. So that decision is up to you. From what I read, you have not yet quite reached your pain point. When you do, you'll know and hand off to a PM. Gather the additional properties you plan and you'll get to your pain point. :-)

3 Votes

The percentage they charge out of your rent is intended to cover the cost of administering repairs and providing them with a fair profit. I would replace them. Not cool at all, in my book.

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Originally posted by @Evan Polaski:

@David de Luna, I agree that finish selection should be outlined in detail, as this can make or break a rehab, and a "medium" grade is very subjective. There are some finishes that look great almost universally (white 3x6 subway tile) and are very inexpensive.

But I also agree that you do not nnecessarily need a project manager if you have a detailed scope of work and an inspector already lined up. I am guessing the realtor is trying to mitigate surprises for you and the contractor if the draw inspector says the work is not done to expectations when finished. Versus catching an issue much earlier in the install, when the contractor can fix more easily, and your timeline and materials aren't wasted.

As for finish selection: I am guessing Greg means you specify exact tile to be used, grout color, flooring, light fixture for kitchen/bath/bedroom/etc, paint color for walls/trim/doors, etc. You do not leave any guess work at all for the contractor. It also makes it easier if budgets start to change. But mostly it protects you from the contractor picking something you don't like and the contractor from picking something you don't like, and then figuring out who has to pay for the replacement.

Excellent feedback. It's what I was thinking. Thank you very much.

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Originally posted by @Greg Dickerson:

Originally posted by @David de Luna:

I used a few different companies to do rehab work. I have used them in the past, know their work. One is also a GC, the other not. Both do great work and are reliable. A Realtor told me I should use an independent GC or knowledgable Realtor to act as project mgr to assist them in developing a SOW and to manage their work. Not sure that's needed but I'm open. While I'm out of state, I feel reasonably confident that if I use a known entity with whom I have a history, that I can ask them to prepare a SOW with medium finishes (for example), granite countertop, and kitchen finishes to match that I don't need to actually be much involved in the finer details of fixtures and finishes but wait and see what their SOW will offer.
I then work with whoever gets the job to fine-tune the SOW into a draw schedule. I don't do percentage completion, but identify and attach specific tasks - carpeting, kitchen cabinets, roof, exterior paint, interior paint, etc. - to specific draws so that I can send out an independent draw inspector with the SOW and draw schedule to tell me, for example, 1) roof done? Look right?, 2) flooring done and looks as I intended?, etc. Based on that inspection that includes pics, I pay or have a discussion with the rehabber.

Are you more hands-on as an out of state investor, and to what extent, or how do you approach developing a SOW, project management, and draws for a flip as an out of state investor?

I always do turn key in or out of state for all projects commercial or residential. The GC will come up with SOW based on my guidance but I supply detailed finish schedules and selection submittals so there is no guesswork or allowance schedule to deal with. I pay upon completion but get lien waivers before releasing the payment.

Thank you SO much for this feedback. Excellent! What exactly do you mean by a finish schedule and a selection submittal? Thank you.

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Assuming you refer to the lessee that has died, technically, pretty straightforward - lease terminates now that your lessee no longer exists. Do what you will.

1 Vote

It is impossible to reply to you without knowing the extent of the damage.

One piece of wood damaged - $100.

Half the house eaten up - $20k - $200k and that's a wild guess.

Get no fewer than 3 bids to know the answer to your question.

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All Forum Posts by: David de Luna

David de Luna has started 100 posts and replied 375 times.

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Post: How Do You Manage a Rehab Project?

Post: How Do You Manage a Rehab Project?

Post: What to do if tenant on lease passes away?

Post: Property repair cost in Bay Area