All Forum Posts by: Mitch Coluzzi

We are in the midst of a horror story produced by an inherited tenant as well.  It's very interesting on how the courts allow it things to go on, with literally no legal relevance.  We won the FED / writ but tenant filed Appeal.  Appellant Judge has heard the case, made a verbal declaration but has yet to file an order. Per our counsel (who I involved for advise once we went to Appeal),  Appellant Judge has UP TO 90 days to issue the order.  [[Once the issue is finalized and everything is public record, I will write a large forum post about it detailing costs and our process to help others in the future, should they ever be sucker-punched by the scenario]]

There are a lot of bad landlords, and there are also a lot of scum-bag tenants.  Think it will take a lot of foot stomping to even discuss change and it will likely just result in sore feet...  Would love to reform to a "fair" middleground even if it just meant expedited hearings / decisions by a judge well versed in tenant/landlord issues! 

This information varies by area as other posters have mentioned.  But... these are the numbers I budget with in Iowa for my internal projects.  If I am bidding work (occasionally general job), there is a slight mark-up from here for management / overhead.

WASTE FIGURES

• Do not forget about waste calculations. Sheet goods and carpet come in predetermined widths (10, 11, 12 ft depending on product / manufacturer). If you have a 10x10 room you plan to carpet, you'll likely have 20% waste.
• With LVP (luxury vinyl plank) which I believe you are describing, your waste should be less. Same for ceramic but still figure AT LEAST 10% for edges, more if the areas are chopped up. I calculate 15% average waste on budgeting and am glad when actuals come in lower.

PRICING FOR FLOOR COVERINGS

• CARPET: $1.60/Sq ft for a builder grade carpet plus 8# premium pad installed. Stairs add an extra $10-$13 per step plus Sq ft and 30% waste.
• ENTRY LVP / Laminate: $7.85/Sq ft with vapor barrier underneath. (figure product in the 2-3/Sq ft range, standard transitions)
• CERAMIC: $11.50/Sq ft with durarock (figure tile in the 2-3/Sq ft range, standard grade edging and transitions if applicable)

A couple steps that might help you find a usable contractor:

1. Retail stores will take you to the bank for flooring, typically. 
2. Avoid coming off as a first-time flipper, it will cost you more $$ as well.
3. Find yourself a local carpet distributor / sundries supplier (tack strip, glue, flooring tools, misc other little things). These are stores that buy from multiple manufacturers and then sell to contractors more or less exclusively. 
   1. Ask them for a recommendation for a reliable builder-investor friendly flooring installer. The one-two guy crews they recommend will get you into the right price points to start... eventually, when you get more consistent business for flooring vendors, retails stores (whom are more reliable) will want the business and get nearer to reality in pricing.

--- Sidenote: we transitioned from hiring of LVP/vinyl/ceramic/hardwood to handling in-house which has shaved our costs substantially from the above budget averages.  Labor is a HUGE part of ceramic...   Below is an example of the finished products we install, so you get a gauge for what you should expect within the above budget ranges ---

All, just a reminder that our March meet up is this week Thursday, March 16th starting around 5:30-6:00 p.m. We will be at a NEW location; going to give Ingersoll Tap a try. Looking forward to seeing everyone this week!

Where:

Ingersoll Tap

2837 Ingersoll Ave

Des Moines IA 50312

When:

Thursday, March 16th 2016

Round about 6:00

Thanks,

Mitch

Welcome to BP, we are investors in the DSM market.  Solid place to be, semi challenging to break into currently though (as everyone wants to be here).

Feel free to reach out and best of luck investing!!

Welcome to the field!  Feel free to reach out if you need help getting started.  We broke into the DSM market in 2014, have plowed some serious soil since.

Hey All - We host a monthly meeting at Caribou Coffee; everyone is welcome to attend.  This is largely just a networking event in the Des Moines area for anyone interested in Real Estate.  We have various knowledge levels and backgrounds.  Come check us out!

====================

Where:

Caribou Coffee

3220 Ingersoll Ave

Des Moines IA 50312

When:

Thursday, SEPTEMBER 15th, 2016

Round about 6:00

@Matt Roghair technically, you would only need a salesperson license but your broker (whom your license would be under) needs to be competent in property management.  They are more-or-less responsible for your actions.  

You can self manage your own properties including those owned in LLC without any licensing though. Make sure you check rental certificates / inspections in your area... A lot of people forget about those and get in a hair of trouble when they learn about em.

My father is a contractor / investor.  He always told me "If you don't want to be sued, work for someone."

I personally would give the building inspector a call directly to learn whether a letter is indeed being sent and/or if they are just beating on their chest to get things remodeled, justify (in their minds) not paying rent, or just whining because they have nothing better to do.  Most inspectors were contractors previously (at least in my area) and will give you a raw opinion of not only the property/condition but also the people they interacted with.

Most of the time these things never materialize, your tenant would have to have an attorney agree with them, the money to pay for the attorney, and the time to argue about it in order to take this anywhere.   Without all three pieces of that puzzle, it'll be a non-starter.

I learned the mentally anguishing way... the bottom line is, you have more important things to deal with.  Save yourself the stress and pay the attorney to deal with any threats of litigation.  The money spent is well worth the headaches avoided. 

Given your astonishing and grossly degrading living conditions; which you are clearly tied down and forced to live in.  I would suggest you further question as to whether there is undisclosed lead based paint, asbestos, and/or aliens living in the walls.   Make a good list of those for your sure-fire lawsuit.  Given that I provided such good advice, I believe you owe me a favor.  Please, please, and please twenty times over video tape and upload this whole ordeal to BP.  My suggestion is to begin filming with your next forum post.  

You know, documenting the process so that everyone can learn from the mistakes of this miserable landlord, and that awful previous tenant.

**Troll Feeding Process Complete**

@Robb Spearman I couldn't agree more;  DSM and WDSM are absolutely fantastic.   I am a full-time investor, wear a real estate broker hat, and run a construction company with family.   We relocated here from Chicagoland and haven't looked back...  Live, work, and play in Des Moines which makes it relatively easy to keep a finger on the steady city pulse.   

The cities (including most of our "suburbs") are so vibrant and it is relatively easy to make connections throughout. Right now, deals are scarce and investors are plentiful. Think the cat might be out of the bag but... the deals are still out there with a bit of looking and patience. MLS marketed properties with much investment potential are far and few between. Just don't get caught by the slight inflation this summer's lack of inventory has produced... Evaluate each "deal" based on your verifiable numbers, design capabilities, and return requirements.