All Forum Posts by: Jack Edgar jr

Ps. Having a major home-improvement company doesnt guarantee the best outcome for your needs. They too use various subcontractors to provide the services you described and act as middle man allowing for a one stop shop. 

it's sounds like your trying to create some type of system to stream line cost estimating in a one box fits all way. First,  May I suggest you pick up a copy of J Scotts book on Estimating Rehab Costs. 2nd, there are several ways to do projects including: the right way, their way, your way, and everything in between. Experience of interviewing contractors and having them work with you to come up with a plan for project will help. Over time you will have a good reference point to start estimating costs on your own. As an alternative, perhaps find a mentor help accelerate the process. 

Along the lines of what @Mike McCarthy said, why not offer a generator to the building and run temp power to the necessities. 

On that note, I don't know the scope of discussions with your tenants but doing a project of this magnitude I would seek input from the tenants to best assess a good plan. Just my 2 cents. 

From what I'm told, traditional financing is hard to obtain with challenges like this. In your case it might be an advantage. The key is understanding the issue and the best way to resolve. I'd dive in deeper. Solving this could allow for a nice return if played right. 

Definitely a solid move. Could you have asked for this as a closing credit and put it escrow with your bank to do the work post closing ( instead of asking for the reduction)? In a case with one of our lasted sales: post inspection, the buyer gave a choice to the owner of doing the work before closing or provide a credit. In this case it was a hybrid of both. Deal closed. 

What kind of capital improvements are n needed?  I'd see what could be done to improve the property into something one could be proud to call their own investment property. 

Gotta ask,  why are the tenants forfeiting their deposits? The owner holds the deposits and should be turned over at closing. 

Re: the financials something seems off, I'd firm up the current rents and how look they've been paying at that level. At end of day if market isn't where rents are in this building those numbers should have a bearing in your analysis too. Just my 2 cents. 

Totally agree with the suggestions so far. May I also suggest, depending on where the mold is building up, to replace product with anti mold product. Ie paint: mold resistant paint, caulk: silicone bath/kitchen caulk, etc. 

I've done this with our area community organizations and found that if u go in too aggressively they could treat you as an outsider. May I suggest going to one of the meetings and feeling it out first. Build some rapport and go from there. It might take a visit or two for them to feel comfortable. 

One thought that comes to mind: put up another post saying this property is off market, as well as on other sites too. That way when someone does a search they will see it off market.  Just an idea. Like the watermarking idea perhaps include a updated water mark on photos of property saying, "rented/not available as of X date."

To all my Cashflow residential single family-6flat investors, that are on the southside of chicago around Marquette Park, and Inglewood. 

What are you seeing for your operations expenses when underwriting your deals. Working on a portfolio of single family, 2-3flats, up to 6 units. Curious to hear your thoughts on the costs involved and return expectations (cap rate, GRM, etc.)

In this situation assume properties are fully occupied, recently renovated, and tenants pay all utilities. I appreciate your thoughts/advice.