All Forum Posts by: Jeremy England

@tj 

@TJ Jeff

I appreciate the feedback.  I'm at the top end of my rehab budget already.  Ran into some surprises like a drive way buried under where the new driveway was going which needed to be excavated ($400)

Roofing costs have nearly doubled since I was last in the construction business, I budgeted 3500, it costs me 5200.

I did not recgonize that there was significant drainage problems in both the front and back yards when I bought the place.  It was dry as a bone when I looked the house over.  Well, about 4 days after I bought it we had some helacious rain and now its a swamp. Im going to have to spend about 500-1000 to get some french drains and catch basins.  

I have the rehab costing about 17k now.  I'm not doing any of the work so far.   Hindsight, I probably just should have done all the interior finish work myself to save money.  

So that puts my all in at about 80k. About 76% of ARV. Still good for a cash out but I may end up leaving a little bit of money in the project

No way, nooooo way would I allow a pitbul in my rental.  Liability is too much

I think you also need to account for how you will be buying and paying for these properties. Remember, alot of banks won't finance a house owned by an LLC. Theyll finance YOU however. Then you'll need to figure out how to get that property into the LLC without triggering any due on sale clauses. Or just roll the dice and figure as long as the bill is being paid, the bank doesn't care.

Get references from other investors or home owners.  

As far as finding cheap contractors who still do good work.  well, I'm not saying LOL

Well, it is really up to your county building inspector of what you have to do.  You should go to the building department and have a conversatino with them.  Some munis will want you to open up walls and what not so they can see what's inside.  Some I have heard will just make you tear out the entire unpermitted portion and begin again.  

If you do not require a bulding permit for a rehab, I wouldn't be hiring a GC.  Putting a roof on?  Roofer gets a the roofing permit.  Changing an AC unit, HVAC contractor gets that permit.  Adding a circuit?  Electrician gets that permit.  

Now if you plan on making an addition or something major like that, yes, you'll likely need a building permit.  Depending on your state regs.  

I think that is getting caught up in the minutia.  Just get a property 

You can figure out what to do with it entity wise afterward.  

Let's say you do start an LLC before. How long before. Now you are paying for an LLC, paying for a biz license, and god knows whatelse before you even get a property.

I say just find a good deal and buy it.  Deal with the minutia afterward

Get on fb marketplace and search for light fixtures, there are tons of them there and people are selling them for pennies on the dollar.  I bought two bath fixtures for 10 bucks last week.  

When I get home Ill grab the can and taka pic.  Its like 7.50 for the can and I can refinish like 5 fixtures with one.  The higher the ceilings, the more you can get away with.  

10 years ago when I was building houses, I could do the least expensive house for about 35 bucks a sf slab.  That's cost.  

That has gone so far out the window today.  I would have to start at square 1 getting bid after bid from subs before I could give an accurate estimate.  Lumber prices are at an all time high, roofing materials are sky high, demand for contractors is high.  

I'll bet the builder's cost is in the neighborhood of 75-80 sf these days