All Forum Posts by: Jonathan Santiago

I am currently getting bids for a project that I am working on which is a 3-unit home that currently has no electricity and has been abandoned for several years. I just received my bid from an electrician which I was expecting to see a detailed line item bid and it instead has 4 lines which said:

1. Bring house up to code

2. Bring the service up to code

3. 4 recessed in each kitchen

4. Demo existing wires

$35,000.

Is this normal from electricians on such an extensive job? This house likely needs to be re-wired and I was expecting to see more detail about outlet placements, lights under the cabinets in the kitchens, etc. This seems extremely vague and I feel like it could lead to misunderstandings due to lack of knowledge of each others expectations. 

If anyone has any insight on dealing with big electrical jobs I would love to hear how you go about your bid and proceeding further. 

Thanks.
 

I just recently got a 3-unit building under contract that currently has no heating system in the home. I am trying to decide between rewiring the entire house and putting electric baseboard (this would also get rid of knob & tube wiring in basement) or getting 3 new gas boilers to heat the house that way. Everyone I ask has their own opinion, but definitely the most common response I get is if the whole house is electrical baseboard then the tenants are going to have extremely high electric bills in the winter (Boston area). Although that may be true, isn't it basically the same thing as gas heat because instead of 1 high electric bill, they would have a low electric bill and a high gas bill in the winter? Is this thinking flawed? Also if I choose to install new gas boilers, I still need to update much of the electrical in the house. From a rehab perspective, is there a significant cost savings for doing electric everything vs gas heat & stove with some updated electrical? 

Definitely excited for this project but this choice definitely has me a little worried about making the wrong choice. The plan with this property is BRRRR and if the rehab hits the top end of our budget it will become a flip. Any insight and/or expertise on this subject would be greatly appreciated.

Thanks 

I am having the same problem, whenever I type that URL in my web browser nothing comes up.

Who are these checks made out to???

Hey Steven I've gotten a few ads from Flaherty Contracting on Facebook and their work seems to look very good. I'd check them out for your masonry needs. Hope it works out! 

@Chris Bisaillon Awesome I look forward to it

Just saw this I am bummed I missed it. Hope you do another!

@Dave Foster

Thank you for the explanation. I am actually in the process of setting up a meeting with my CPA so we can go over different options and tax implications of those options if this house sells.

So all these professional house flippers who flip houses for a living are paying Ordinary Income tax PLUS a Self-employment tax on their profits?

I am looking to go full-time in this looking for properties to BRRRR but I am sure occasionally I will end up flipping some of the houses I buy so trying to see if that will ultimately hurt me?

@Ryan Elblein it is about a year and a half so from what you are saying it sounds like long-term capital gains. Thanks for the information!

@Lance Lvovsky that makes sense thanks