All Forum Posts by: Kenia Crevoisier

@Kenia Crevoisier

Thanks everyone! It seems they are trying to sway us from doing it with permits. Unfortunately that is a very common thing here. But we definitely will around and get this done with permits.

The price was increased because the original plumber is asking the new plumber to bring up the price to get us to do it with no permits. I confirmed this because a third plumber recommended by the original plumber called us trying to convince us not to pull permits after speaking with the original plumber (they all know each other). The third plumber was not doing this before speaking with him.

Around here vendors want to get paid ASAP and doing things with permit delays it. I get it but permits will also guarantee they are doing the job right, will help market our property when selling, and we can have peace of mind that we will not get “caught” by the city.

I appreciate all your comments!

Actually, he’s not a GC. He’s a plumber we hired for the pipelining work. He got a different plumber to finish the work he no longer could do. 

I just finished speaking with the new plumber. He explained that he was giving a discount for the work because the original plumber could not finish the work and wanted to help out. But now he is pricing us a regular price because the permits will require more work. 

So this is a situation between the two plumbers. And the pricing difference is because he no longer wants to give discounts. 

So going back to my originally question, I don’t think price should be that different for permits or without permits, after speaking with the new plumber. 

I think the mistake here was the original plumber did not check for sure if he was experienced for the job, started work, and than realized mid way he was not qualified to do it. And of course I am at fault too for not supervising and asking more questions. 

@Matthew Paul

All of that should have already been part of the first estimate. A request for permits is what drove the estimate up. The issue is not the increase, which is expected, it’s the amount for requesting the work with permits.

Hi BP,

I am currently negotiating a pipe replacement project to change a property’s cast iron pipes to PVC pipes. 

We were originally going to do a pipeline work but a month into the project the CONTRACTER informs me that the pipes are in too bad of shape for pipeline. A replacement is necessary, however, they need to get an experienced plumber for that work. The experienced plumber that he recommended to us originally gave an estimate of roughly $5k to change the pipes, but with permits is charging $11k. What gives? I was expecting maybe $2-3k more for work with permits.  

How much more should a work be with permits va without permits? P.S. we definitely want to do this job with permits and agree to pay more for the work but I don’t think this price increase is reasonable. 

 Hi Wayne,

Yes, you are totally right, this is a wood frame. The CBC refers to the vertical structure, not the horizontal structure. I appreciate your input!

Thanks, Nicky for that clarification. I verified that the "CBS" refers to the vertical structure of the property. This is for sure a wood frame. I definitely will see if I can get it inspected, not something I think I should take a risk on. I was not sure how common this might be and if it's worth the additional inspection or just walking away from it, considering the age. Then again, I've been told that the property's age is not as important as the property's repair cycle. Lots to consider. 

 Hi Steve. Thanks for your response. How do you recommend I go about searching for "foundation guys". I realized some contractors may not have experience in foundations or older properties in general. 

According to the internet, "Pipe lining is a way to restore the pipe from corrosion, leaks, or cracks from roots. It's a four step process and essentially is putting a pipe within a pipe. ... Pipe lining also increases the life span of a piping system, preserves the building structure, landscape, and causes little to no destruction to the property."

I have never heard about PEX. Most people I know just replace the cast iron pipes with PVC pipes. Thanks for the suggestion. 

Thanks, Will. I will ask about the crawlspace encapsulation. But I first need to identify the cause of the sagging. I am also concerned about the vacancy due to these repairs. Sounds like if the crawlspace is too small to repair from underneath, then the units will need to be vacant. So there goes an additional cost.

Hi BP, 

My husband and I are currently under contract on a 4-unit property located in Miami, FL. We plan to house-hack this property (live in one of the units and rent the others for at least one year). We just finished doing the comprehensive and plumbing inspection last week and will need to decide if we want to move forward with this property soon.

There are two major repairs that I would like to get estimates on. The roof and electrics have been recently updated, but not the plumbing. Plumbing alone, we need to spend about $11K on "pipelining". The plumber suggested we do this work instead of replacing the pipes and he claims this lining will last up to 40 years. The current pipes are cast iron. 

We planned on fixing the pipes anyway so that was not a big deal for us. What worries us the most is the following. The property is a 1920s two-floor building. During the comprehensive inspection, we noticed one side of the building had sagging floors (the tiles were raised). This was most visible on the first floor, but you can also see the sagging on the second floor. We did no have access to the bottom of the building because it was closed off due to animals entering the bottom of the building at some point. We then had a plumber inspect the pipes and discovered with the sewer scope camera that the pipes under the building had cracks and one large hole (you could fit a hand in it). This got me worried since I am pretty sure the foundation is made of wood, however, the MLS states it is a CBS Construction (maybe this has nothing to do with the foundations). I started to wonder if the sagging floors could be due to deteriorating wood or a faulty floor joist/s. I've also read many investors warn about foundation problems. And since this is an OLD property, the problem most likely needs to be addressed ASAP.

We are going to speak with the seller to see if they could give us access to the foundation. A hole on the side of the building needs to be made to get access, not sure if they will agree to that. Below are some pictures to give you an idea of the sagging floors. Any advice, suggestions, or recommendations is greatly appreciated! 

So much amazing advice on this thread. 

I myself am a new aspiring investor. i have my CPA license and specialize in real estate taxes. I deal with clients who are real estate investors. I advise them, I studied years to understand all the tax benefits the IRS awards RE investors with, but I never thought about actually ever being a RE Investor myself. It wasn’t until my husband told me to read Rich Dad Poor Dad that I realized, wait a minute, I can do this too! 

While reading Rich Dad Poor Dad I found myself saying "yes, yes, that makes sense, YES!" I'm an accountant, I see clients personal and business tax returns, they pay so much less taxes than my clients who are attorneys and doctors. I review tax returns, HUD statements and financial statements with a new pair of eyes.

I still have a lot to learn, knowing the tax benefits is only part of the whole journey. But I’m extremely excited for these new goals. And I appreciate all these advises so much. Thank you all!