All Forum Posts by: John Chapman

Labor for laminate install can usually be done for $1/square foot (sometimes a little extra for baseboards)
Hardwoods tend to be more expensive (never done them, but I see $2-$3/ft) If it's just glue down on a slab then $1.50/ft.

Roofing prices- These are all over the map. I've gotten these done super cheap and have usually regretted it. I see $155 square advertised a lot (tear off one layer, materials, removal everything). That's probably high, though since shingles (material alone can usually be picked up at $45-$50/square.

Sorry, I didn't read Danny Day's post closely enough $.70 a square foot was for materials.

Shane, are you looking to flip or hold as a rental? If it's a rental, then I generally don't scrimp on things like a/c or roof. I think Brian Hoyt's number for a/c is probably about right. I've gone super cheap on a/c before and been burned. There is a huge range of quality. Also, HVAC is one of those things where if you do it wrong people can get hurt or you'll have ticked off tenants calling you all the time. Also, if it's a rental, with HVAC you want a guy who is going to (1) stand by his warranty; and (2) be super responsive to your tenants when a/c goes out.

Danny Day's numbers look pretty close to me, except for tile. That is an amazing number at 70cents/square foot. I generally pay a about 1.5/square foot. I could go cheaper, but I've had bad results when I did.

I totally agree with Steve Babiak's comment that you've got to require every tenant to fill out an app and screen. Doesn't matter relation. I just had a tenant move into another property of mine and he wanted his sister-in-law to take his place. The guy has been with me almost 4 years but I still required the sister in-law to fill out an app and do a background check. Turns out she had five evictions in the last 7 years. Total professional tenant taking advantage of small landlords. I denied her on the spot. I believe my current tenant that he had no idea she was such a scumbag but it goes to show you have to trust but verify.

I have had a situation kind of similar but it involved an ex-spouse. The woman and her husband initially signed the lease and submitted to Section 8. After signing the lease, but before moving in, we amended the lease to have the husband removed due to the fact they were getting divorced. Long story short, few months later Section 8 kicks her out for having a felon on the lease. (His crime as I recall was beating her.) Husband had not lived there a day, but Section 8 did not care. I wrote letters and explained the situation but they kicked her out of the program. I was really disgusted with the whole process.

The general rule (and there are exceptions in certain jurisdictions) is that subsequent remedial measures can't be used against you. I'd be highly skeptical that if you put up the railing now, it would ever be admissible at trial. (Obviously, I have not researched the issue, so please don't hold me to it.) If you've got a safety issue, I would go ahead and fix it so it does not happen again.

I've use hard money to purchase rentals. The main reason is so that I can fund repairs and immediately refinance the note into conventional Fannie Mae financing. I don't believe you can do cash our refinancing with Fannie Mae, at least once you are over 4 mortgages. I've run the numbers and, even though it's expensive, hard money makes more sense when you can refi into conventional.

I will say that after having used it for a while, you start to get sensitive to how much it's costing. At that point, you start looking for private money as J Scott mentioned.

You've already done it, but I wish I had consulted with more knowledgeable people. My first few "deals" weren't that great and I learned a lot from the proverbial school of hard knocks. I was of the opinion that I didn't need other people and could figure it all out on my own. I have since (hopefully) smartened up a little bit on that front.

I always check at least once a year:
(1) Smoke alarms
(2) Fire extinguishers
(3) Roof (usually just send someone in to the attic)
(4) Windows and doors for leaks;
(5) Underneath sinks for leaks (in case you haven't notice I'm terrified of water)
(6) Exposed wiring of any kind
(7) Any type of repair that needs fixing (I just give my handy man free reign)
(8) HVAC (separate HVAC guy comes through and inspects and services)
(9) If there's something unique to the house (e.g. railing), I have him check to make sure it's safe and secure.

I believe most of this is in Texas Property Code 5.061 et seq. 5.069 and 5.070 appear to contain the requirements for a lease that is more than 180 days. Here's a link. http://www.statutes.legis.state.tx.us/Docs/PR/htm/PR.5.htm#5.061