All Forum Posts by: Olivier Mader

Adding the plumbing for the kitchen sink can be a bit of a pain if the wall behind it is block.. My room already had existing plumbing where the kitchen sink is.. Did have to add the drain for the tub as it only was a half bathroom.

Previous owner had used that room as a 2 chair hair salon, so it was a benefit for me to do the conversion. Adding the tub drain was the only bigger plumbing work I had to do.

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Added a bed.. couch and dining table will follow soon.

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Total cost was approx. $5700 with me doing most of the work. I may have missed a few things in my list but I believe I stayed under $6000 total cost.

The break down was the following:

Drywall and Studs: $500

Bathtub: $150

Tile: $300 (450 sq/ft at approx. 67 cents per sq/ft

Thinset&Grout: $100

Closet doors: $150

Wood Door 36 x 80: $170

tub surround Porcelain tile: $160

Plumbing supplies: $300

Sliding mirror tracks $20

Mirror $20

Vanity: Existing

Toilet: Existing

All wood cabinetry: $950 (I get 60% off at my supplier)

Sink: $95

Faucet: $85

Backsplash linear tile: $100

Fridge: $400 at Sears Outlet

Microwave $140 at Sears Outlet

110 V single cooktop $80

Miscellaneous parts/screws etc. $200

Paint & paint supplies $150

Granite $156

Labor to mud and finish drywall $1200 (only part of home improvement that I don't do myself is drywall finishing and stucco as also major concrete work)

Now, I added a Fireplace TV Console which I bought on sale at Walmart online for $208 including tax.

I have not decided if I rent it out or not or if I just use it for guests.. I do have 5 rental houses right now and I'm not sure if I want to also rent that little Studio.. Not sure yet. For me, the project was mostly to boost my homes resale value as I will probably move to a different school district once my daughter gets to middle school age as the assigned middle school is not very high rated..

If I rent it out, I will be asking for $700 which includes internet, cable, electric and water.. The unit does not have separate utilities, so I have to include it in the rent. Net profit would be somewhere around $500. So, the investment would pay for itself in 11 months of rental income..

I do have an extra king size bed with night stands which I will use. Only thing left to purchase is a small, round dining table with 4 chairs which will set me back another $300..

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Converted our bonus room (in my primary residence) with half bathroom to an In-Law studio apartment with a full bathroom.. Going to furnish it in the next couple of days.. Here are some before and after pics. Bathroom mirror slides away from the window if needed.

Fireplace TV stand..

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My fireplace wasn't that bad after I remodeled it in 2010 but we got bored by the stone ledger look against the flat wall, so I decided to bring it into 2018.. I will use an electric log, so I wired the fireplace for a electric logset..

Click on the first image and it will open up in the correct orientation...

Before...

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About 10 years ago, I remodeled one of my bathrooms in my primary residence. I used 16 x 8 travertine with rough edges. I had never worked with rough edged stone before, so it was new to me. Everything went great until I did the grouting.. When I tried to sponge off the grout, I was unable to get the grout off the rough edges of the travertine as it stuck to it like glue.. Ended up with a ugly huge grout line... :-(

Luckily, I learned from my mistake and I use sealer on the travertine BEFORE grouting.. That way, the grout does not stick to the rough edges...

1 Vote

Originally posted by @Eddie Majesky:

@Olivier Mader

Following this post; I’m looking to save on my next purchase...

Do I need a buyers agent? If I go alone, what should I look out for? Thanks

The seller is the one paying commission, so I would recommend using a buyers agent.. I use a buyers agent myself but I don't use a sellers agent when I sell as I use Flat Fee MLS to save half the commission.

I always use a buyers agent if buying off the MLS as the seller has to pay the agent.

Lately, there have been very few good deals on the MLS.. My last property, I purchased from a wholesaler whom I got to know through this website!!

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Originally posted by @Elaine Wanjiru:

Wow, that is beautiful work. How much would it have costed you had you used a contractor as opposed to DIY?

Probably about $30k to $40k in labor..

Markups are really huge for things like Kitchens and bathrooms.. A nice bathroom remodel with a wood/granite or marble vanity is at least $8k to $10k but costs me less than $2k.. A nice kitchen with all wood (non oak) cabinet and stainless appliances costs $15k to $20k. Did the entire kitchen for about $5k

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Finished the exterior of the house and ended up renting it.. Tax Reform did NOT impose Self Employment taxes on rental income, so I decided to rent it out.. Rented it out for $1375 per month.. Considering my $70k total cost, that equates to over 20% ROI..

I listed it for Rent on Zillow and within 3 days, I had 8 qualified applicants..

https://www.zillow.com/homes/for_sale/10-Hundley-Dr,-Davenport,-FL-33837_rb/?fromHomePage=true&shouldFireSellPageImplicitClaimGA=false&fromHomePageTab=buy

1 Vote

Originally posted by @Richard Sherman:

Originally posted by @Olivier Mader:

Originally posted by @Richard Sherman:

Originally posted by @Olivier Mader:

Originally posted by @Richard Sherman:

Originally posted by @Olivier Mader:

Originally posted by @Dean H.:

Great job. I love these type projects but I follow the " why eat lamb today when you can sell wool for years" idea and keep them for rentals.

Again, GREAT JOB

I have been a landlord for years and was actually thinking of doing the Home flipping/landlord thing full time as I created a big enough capital base so that I don't need my job... However, once I stop working my regular job, I will have to pay almost 40% in taxes on rental income due to the changes in Tax reform to make rental income subject to Self Employment taxes. If my tax rate is 25%, my rental income will now be taxed at 40%.. I don't want to give almost half to Uncle Sapoom.. If I flip it's either 20 - 25% (my regular tax rate) or 15% for long term capital gains if I hold the house over a year.. I refuse to pay over 25% on anything.. My tax rate is low as I have 2 little kids and my wife does not work... If I was single I would be in a much higher tax bracket..

Wouldnt you be able to just put all your rentals into a LLC (or even a Partnership with your spouse etc which would give you a K1?) Then as a pass through entity your income would be 20% Fed?

I can't incorporate due to my day job.. I work for a major financial institution which also has many foreclosures and any outside business has to be approved by them. If they find out without getting approval, I will get fired and would lose a 6 figure severance package..

And I assume they wouldn't approve it? That sucks. Even a simple single member LLC would allow for the income to be taxed at the new lower Fed rate

I can only do that once I'm laid off. I would like to get laid off to work full time on properties but I don't want to lose my severance package, so I can't quit or get fired.. I may incorporate after I get laid off. However, there are problems with incorporating. As a private person owning property, in the State of Florida, I do not need a contractors license to work on my homes as long as I pull permits where applicable. Once the home is owned by my corporation, I can't legally pull permits anymote. I would need a licensed contractor and that would get too expensive. I do 99% of all work myself. What I may end up doing is to buy the property as a private person, remodel it and then quit claim it to the LLC and rent it via the LLC.

Make sure you check how not needing a license for trades (usually people mean Electrical and Plumbing) applies to properties intended to be rentals. Worth knowing if they restrict that. I think your idea of getting them done then moving into a LLC is smart. You will want the asset protection of being in a LLC as you get larger. Good luck with everything and KEEP THAT JOB or A job...things grow so much faster when you can throw extra money and profits into growing instead of having to live on them.

The rules are very simple.. If the property is in your name, you do not need a license for just about anything except air conditioning I believe. If the property is not in your name, you either need a license or hire a licensed contractor.

1 Vote

All Forum Posts by: Olivier Mader

Olivier Mader has started 10 posts and replied 105 times.

Post: Bonus Room to In-Law Apartment conversion - PICS

Post: Bonus Room to In-Law Apartment conversion - PICS

Post: Bonus Room to In-Law Apartment conversion - PICS

Post: Bonus Room to In-Law Apartment conversion - PICS

Post: Remodeled the fireplace in my primary residence..

Post: What was your worst home renovation fail!?!

Post: To sell by owner or not???

Post: Some before and after photos of my current project..

Post: Some before and after photos of my current project..

Post: Some before and after photos of my current project..