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All Forum Posts by: Tatiana K.

Tatiana K. has started 3 posts and replied 7 times.

Post: Replacing a GC midway through a project

Tatiana K.Posted
  • Investor
  • Los Angeles, CA
  • Posts 7
  • Votes 3

Hello to all the brilliant BP'ers out there, hoping to get some good advice on an uncomfortable (albeit not uncommon) situation. 

We bought a duplex, decided to gut-remodel and hired a GC to do the job. We signed a contract, complete with payment schedule and scope of work, for pretty much the entire thing from demo on the interior/exterior, all the way through finish work, kitchen/bathroom install, plumbing, electrical, windows - everything. So far they've done demo and about half of the framing and we're very unhappy with the work. The GC is never at the site, his foreman is rarely there and when he's there he's not  directing the guys, and the workers are not familiar with or invested in the project whatsoever so we're getting very very subpar work that requires a lot of revisions and constant oversight.  

Bottom line is we want to fire our GC and go with another company, but we've signed a contract that doesn't have a termination clause (rookie mistake). We've paid for materials, demo interior, demo exterior and the next stage is the framing which we don't want to pay because the work is so poor. Any advice on how we might be able to escape the contract without losing our funds? Wanted to see if anyone has dealt with a similar situation or might know a good construction lawyer in the LA area. Any advice would be greatly appreciated!

Post: Double-shower vs. Tub in a rental?

Tatiana K.Posted
  • Investor
  • Los Angeles, CA
  • Posts 7
  • Votes 3

@Robert Nason, @Robert M., @Don Meinke, @James Wise

Wow thanks all for the input. I'm actually glad to hear there's so much consensus on the shower, it certainly makes for an easier decision. 

One follow up - will that alter our stats to a .75 bath in the records? The only other concern was that it would reduce the value of the stats change, and we need to refi next year. We will permit the work so the city will know. 

Post: Double-shower vs. Tub in a rental?

Tatiana K.Posted
  • Investor
  • Los Angeles, CA
  • Posts 7
  • Votes 3

Hi BP, need a spot of advice for a bathroom reno in a duplex. Quick stats on the unit - 1920's structure, 1/1, approx 900 sf, projected rent $1650. 

The current bathroom layout isn't up to code so we're going to have to widen the room and shuffle the fixtures regardless, which got us on the tub vs shower question. It's the only bathroom in the unit, but is getting rid of the tub a bad idea? All the home reno forums say yes, but this isn't an SFR, it's a rental unit.

My opinion is we should keep the tub to appeal to the broadest possible audience. Husband argues that having the dual shower could be the wow factor that really sells the place to a prospective tenant. Either way we'll make it home-quality finish. Any thoughts?

Here's the current layout http://imgur.com/eZXLTpG

Here's the planned layout http://imgur.com/vVEahy0

Post: Rehab with tenants present?

Tatiana K.Posted
  • Investor
  • Los Angeles, CA
  • Posts 7
  • Votes 3

Thank you@Justin Thompson!

 @Pat L. that's an amazing experience and one I can't expect we'll achieve as newbies to both landlording and renovation. The thing we have to remember is this property is in a nice area on a lovely street, and the rental market is strong in our area so worst case scenario, renting it will hopefully be easy enough.

@Manolo D. this is definitely something we thought about as well. 

Post: Rehab with tenants present?

Tatiana K.Posted
  • Investor
  • Los Angeles, CA
  • Posts 7
  • Votes 3
Originally posted by @Justin Thompson:

Interesting, that's something I never thought of. Can you please elaborate?

Post: Rehab with tenants present?

Tatiana K.Posted
  • Investor
  • Los Angeles, CA
  • Posts 7
  • Votes 3

@Justin Thompson thank you for the input! Luckily we're not planning to move into our unit right away so we could ostensibly update ours first, then let them use the bathroom/kitchen while theirs is under construction. 

I'm also willing to cut them a deal on the rent and raise it gradually, or even keep it as is for a period of time to keep them happy. A month of vacancy would cost much more than a few months of lower rent and I want to do right by them.

Post: Rehab with tenants present?

Tatiana K.Posted
  • Investor
  • Los Angeles, CA
  • Posts 7
  • Votes 3

Hi BP, I'm proud to say we finally took the plunge and bought our first property! It's a 1920's craftsman duplex, 2/1 + 1/1 with one vacant unit and a 15-year tenant in the other (luckily no rent control so they're near market rate). It's not much on paper, but we're in Los Angeles, so starting where we can. 

Our game plan is to fix up the place, live there for a while, and refi out of our FHA as soon as humanly possible because the PMI is no joke. We need to increase the property value by about 60k to hit 20% equity and be eligible, so the reno needs to count.

If it weren't for the looming refi putting a squeeze on us, my initial instinct would be to leave the tenants alone and make updates to our unit and the general structure only, then update the other unit either gradually or once they leave. However, updating both kitchens and bathrooms would certainly net a higher appraisal. Also after the reno we should be able to get about $500 more for the 2/1. 

Question is: how do you work in updates around people living in the unit? I think they'd be cooperative if we offered to update their place, but working around all their things and furniture would make the process much harder/longer. How do we get them and all their stuff out while the work gets done, or do we even need to?

Thanks in advance!!