All Forum Posts by: John Clarken

I'd start out by looking for contractors that have working knowledge in the remodel business as they will know the scopes required to complete the project. Make sure to define exactly what you want to do. The less vague the more accurate the pricing. Example - I want to redo the bathroom VS. I want new vanity, tub/shower combo, tile flooring, new mirror etc.

Ask for project list, cost, and scope on previous jobs. Ask if you could visit an active site and/or talk to a previous client. If they push back on this or do not have clients could be a red flag.

Lastly estimates can go up. Contracts lock in pricing. Make sure you review each line item as change orders can get expensive.

I'd start with everything you can find on the internet. Again, this depends on strategy. For example, I try to rent to families and try for longer durations with renters that will take care of the place and also might put down roots with kids in school etc.

Check crime stats, schools, population trends, big job suppliers, colleges, hospitals. This could give options to rent to students nurses etc. After initial research start calling real estate professionals and see where they invest. Again, align to your goals. Also call PM companies. Once this has all been done I would set up a trip to visit the area. This will allow you to see the properties which can vary wildly from the photos.

Last tip - dont force a buy. If you dont find something on the first trip wait. Its better with long distance to get the right property as the wrong one could be a huge time/money suck.

Most markets have potential but it all depends on your strategy. Having relatives in the Houston area who potentially could help with small would be a positive asset. Also having the local market knowledge of areas that are up and coming, where to stay away from, and any other improvements is helpful. If you visit annually or even every couple years it gives you a reason to check in on the properties. Investing in a city or state you haven't visited and and do not have extensive knowledge on can add unforeseen variables that make a deal not pencil or too much of a headache. 

Which ever market you choose will depend on your strategy and how involved you are going to be. Having someone you know in the area that you can trust is a good head start.

Hi Matthew,

I have built close to 1,000 single family/townhomes ground up to certificate of occupancy. Critical items are budget, contracts, and schedule (included durations during contract). The rest is maintaining these items to completion and doing quality checks prior to inspections. If you need help in any of these areas please reach out. I'd be interested in how this project was financed so we can exchange information. Hope to help!

The ADU is set to wrap up this week with hopefully Certificate of Occupancy before Thanksgiving. We are going to be using it for the in-laws but it has great potential for rental income down the road. This was a trial run for us to figure out the process with the city, budget, schedule, contractors, etc.

I would love to chat more and find out how the process went for you. Specifically any challenges you faced, build time, if you used a construction/DCR loan, and if it appraised out in the end!

I think these ADUs have great potential for adds to existing properties as a lower cost way (instead of buying more single family) to increase value. Especially if you flip the main property and add and ADU or two for max returns. This adds another strategy potentially turning single family homes into multis.

Yeah I see this strategy working. I'm currently finishing and ADU in a popular area in Vancouver WA and am excited for the potential. There are a couple builders in Portland who are adding 4 units on a single family lot getting the most value out of the land. No garages and only street parking available. I see a potential for flippers to fix the existing/add to main house and then build and ADU in addition to secure the right ROI.

 I think that is a great idea. I'm doing the same for the in-laws! Good Luck!

 I know this post is old. Do people still go to these meet ups?

Shovel ready should always be in quotation marks lol. Construction can be a huge financial risk due to material, subcontractor, and plan/scope delays. There is no guarantee so having competent management is a must and even then you are likely to go over budget and past schedule especially on a project of this size.

Hi Karen, I agree the market is heading in this direction and there could be a huge value add for investors and home owners.

This is becoming quite popular in Portland (up to four ADU units allowed on a single family lot) and Vancouver WA.

My suggestion would be to get 3 to 6 plan types. Dial them in material wise and then get a contractor base on board. Once you have a competent team with a couple builds and cycle times completed it should start to streamline. You can use the app Fiverr and get a couple generic floor plans laid out prior to taking it to an architect/design team. 

I'm always interested to talk construction so DM if you had questions. I can also share some plan types.