All Forum Posts by: Jake Garrity

@Account Closed sorry I forgot to answer the second part of your question. As of right now, I am self managing and using my local GC in case something arises that needs addressed immediately [which hasn't happened yet]. I also have a few local friends who help out with tours for potential tenants. They also helped send me videos of the renovations when I couldn't get back for extended periods of time. 

But I plan to someday hire a management company, especially if I am able to grow, which would cost 9 or 10% of rents. But this is something I haven't factored into the numbers I have in my original post. 

@Account Closed Hi Aaron - I have not yet really considered private money lenders or hard money. I think after I get a few projects under my belt that might be something I look into more to help me scale and do more deals concurrently. I always thought it would be better to have a few successful deals done before going and asking for other people's money...I think another part of it is that I don't think I'd feel comfortable borrowing until I have done at least one deal with my own money and know I can be successful. 

But for now, I have been fortunate to have a really great day job and I save a large percentage of my income, so over the past 4 or 5 years I was able to save the $130k I needed to fund this project with my own cash. 

@Arta Montero I bought in Cincinnati, in a neighborhood called Norwood. While I did a few projects myself, like the landscaping and refinishing the main staircase, the rest of the work I contracted out. And I was not onsite, I managed almost entirely from Texas but flew back to Cincinnati to check on progress every 2-3 weeks throughout the project [which was an expense I just factored into my numbers]. 

Thanks @Michael Donovan !

@Shauna Abbott yeah I did go a little higher end than a typical rental. To your point, I hope that pays off over time by reducing capX. But in the short term, it has already helped get better renters and slightly higher rent. But I definitely took a long term perspective on this one, and while I was doing the work anyway decided to do things I would be happy with 10+ years from now. Thanks Shauna!

Thanks Lee! @Lee Yoder

@Frankie Renaldi definitely had a few kicks to the boys but just had to keep working through it lol. The process definitely is not as scary now after having gotten through the first one. 

@Hamlet J. I actually found the second GC on an app called Thumbtack. I also found my second plumber there, and he ended up being terrific and the plumber I will use on my next project. 

@Todd Pultz Hi Todd - thanks for the recommendation. I will definitely look into that. 

I am a big data guy, so I tracked every expense during this project and feel like I now have a better way of estimating for the next deal, but will definitely look into the software you recommend as there's still a lot I don't know. But to your point, as I build out the team I can trust in Cincinnati, I hope to improve those costs going forward. Thanks again!

@Daniel Lahey Thanks! As far as accepting the refi costs, honestly I haven't thought twice about those costs. I knew to expect those expenses, and the small bank I am going with has pretty low costs. So only about $2k is fees, the rest is money going into the escrow account. I just accept it as part of the process and cost of doing business. 

My bigger heartburn during the refi process was fear of the house not appraising as high as I needed it to. In the end that wasn't an issue, but that kept me up at night far more than the refi cost did.