All Forum Posts by: James Peever

HI!

Live in New York, own several propoerties and we are looking to properly organize them into an entity for protection and perpetuity for our family. Please provide any suggestions you may have.

Thank you,

James 

 Thanks a lot. I agree with you 100% the non-fixed timeline was way to vague for me and he basically refused to outline anything more specific. Perhaps on a bigger job this contractor would be good, but for a smaller job just getting started he has really put me off. I mentioned in the other comment that this contractor later came back with a text saying that the job would be closer to $90-100k to complete properly. Just out of the blue too without much context. Anyhow I have gone with another contractor and so far it is going fairly well. Thanks for your advice though. Really helpful!

 That is great advise I really appreciate you taking the time to look at it. I actually ended going with another contractor. This contractor later came back just via text stating that the job would really run around $90-100k to complete properly with out much justification. Really out of no where. I understand that all jobs are different, but really just put me off when he came back with such a broad new figure. 

Thank you for your advice though.

Hi BP

We have bought an investment property update Ny. This is our firsts major rehab job and trying to follow some of the BP ethos when working with contractors is proving harder than expected. This is the current quote from one of the few contractors that got back to us.

My Concerns:

- not agreeing to fixed end date

- limited itemized breakdown for each item  

Quote

Exterior: $9000 (not including exterior paint and tree work)

• Power wash exterior (plumbing repairs needed to accommodate)• Scrape original paint as much as possible• Paint exterior• Remove satellite dish from front• Remove front awning above two windows • Repair casement around basement windows• Replace siding as needed• Install rear staircase (permit required)• Replace corner post with 6x6• Install 12x15 rear deck at grade

Front Porch: $1500 (not including work on exterior windows)

• Rebuild front door to clear hump in floor with automated sweep• Clean floor and repaint• Prep and repaint room• Inspect and seal interior window as needed

1st Floor: $5200 + $2.50 per sqft of flooring installed (price of flooring and electrical not included)

• Need to take a second look in house if possible I would like to match original flooring in kitchen, which would most likely lower the flooring cost)• Replace front door (32” left hand inswing try to match décor) Jeld-wen 6 lite prehung $398 would need to be painted to look appropriate• Clean walls repair, paint and caulk window frames (color Simply white recommended in scuff defense)• Level and prepare floor for vinyl including removing all trim, repairing and replacing as damage occurs, install nosing and transitions• Install vinyl floating floor throughout first floor (customer to select flooring for pricing) (sqft unknown install rate is $2.50 Per sqft)• Electrical plan to be determined

Kitchen: $3800 (not including cabinets, refrigerator, sink, faucet, stove)

• Repair damaged floor joist and subfloor• Install kitchen sink• Repair walls trim and paint• Refrigerator location is unknown at this time

1st floor bathroom: $1800 (customer to supply vanity and faucet)

• Remove toilet and flooring (if subfloor repair is need current price does not reflect cost)• Repair walls and paint• Install vanity (work with customer in choosing appropriate vanity)

Laundry Room: $1300

• Install matching rear door 32” RT inswing• Install dryer exhaust• Repair walls, trim and paint• (walls will likely need to be opened for electrical work)

2nd Floor: $2200 Not including Floor refinishing

• General clean-up of walls and trim• Paint• Seal windows as needed• Floors refinished

2nd Floor bath: $5050 (does not include vanity, tile, mix valve, tub)

• Gut shower• Replace toilet• Install vanity• Tile shower• Tile bathroom floor• Repair walls• Trim• Paint

Staircase: $800

• Remove remainder of carpet tack strips• General restoration repair

Basement / utilities: $350 (electrical, plumbing, and heating is separate quote)

• General clean up• Clear all debris from premise 

Total quoted cost: $34,500 + $2.50 per sq ft flooring installed. Flooring labor is not included in the quote total as it is undetermined at this time.

First payment: $1500.00 this is to cover time and labor managing subcontractors
Second payment: $11,000 due when our crew begins on project site

Third payment: $11,000 due at midpoint

Final Payment: $11,000 + $2.50 per sq ft for flooring installed

See excerpt from contract bylaws for situations that may affect payment costs and times.

1. My crew is looking at starting mid-October, however other contractors can be on sight as earlier as 2 weeks after receiving first payment.
2. We do not offer an official completion date due to the nature of our work and the many factors that can affect time frames. We do work hard to complete projects in a timely manner. Our crews work Monday-Friday to ensure a favorable completion date.

For further explanation, please see excerpt from contract bylaws.

1. Ensuring we have access to the home always is an important factor in making sure we can timely complete a project. How will be accessing the house during construction time?
2. If I am unable to find an exterior painter with timely availability from my list of preferred painters, I can coordinate with a painter you secure. Understand that I cannot endorse, be held responsible for their work, job site performance or quality of product.

Payment costs - Due to ongoing market fluctuations, if market drastically increases after start, quote will need to be adjusted to reflect new material costs. This may affect final payment cost or create a third mid-point payment.

Time Frame: The commencement and completion dates reflect CONTRACTOR best estimate and assumes normal job, site and weather conditions, availability of materials, prompt cooperation of the client and free access to all work areas during working hours. Actual elapsed time for the project may be affected by lead times and delivery delays for materials, weather and/or changes in the project requested by the client. CONTRACTOR is not responsible for conditions beyond its control; resulting delays shall not constitute an abandonment of the work. CONTRACTOR shall not, under any circumstances, be liable to the client for damages due to delays

Morning BP,

We are looking for an investor-friendly contractor to help with a rehab project in the Sullivan County region of NY. 

Details:

- Single-family, 3 bed

- Exterior work - gutters, paint and repair, floor refinish/repair

- Update 2x bath, 1x kitchen, plumbing, applicances

- Heat pump/furnace install 

If you happen to have any recommendations we would greatly appreciate it.

Thanks so much as always for your help BP.

James

@Patrick Drury@Kevin Koone@John Mocker@Jason Bott

This is fantastic information. Thank you all for your insights and information. We will definitely speak with our provider. I knew that we needed to have some type of coverage, but the specifics really help. I'll speak with the provider about the Builders Risk Policies and liability and let you know what they recommend in the end. 

Good thing is this reno is mostly cosmetic. No major structural changes are being completed so this should help reassure the underwriter as well. 

Once again thanks so much guys!

James

Hey BP

Closed a property in upstate NY near Monticello. Very excited to get it going. BUT, wanted to get some feedback from the BP group. Should we get some type of property insurance for the house while renovations are being completed and the property is not yet ready for tenants? Would be short term maybe 4-5 months. 

Please let me know your thoughts and any recommendations that you might have. 

Thanks again everyone for your guidance. 

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Thanks so much for the advice Colleen. We are very excited about getting going with the new property, but always want to make sure we are doing it properly.

One other question for you. The county has a resort tax that STRs charge. I gather we will still need to get this tax ID for collection purposes? 

Hello BP.

We've closed on a property in NY state using a traditional mortgage second home. 

We plan on using the property quite a bit ourselves for vacation/getaway purposes, but we want to know if we can also do some SRT when not in use? 

Are there potential hazards involved from the mortgage side of the company? What would happen if the mortgage company "called in" the mortgage? 

Can we do this or should it be refinanced into an investment loan? 

Thanks for all your help BP!