All Forum Posts by: Kevin Cullen

Got it sorted, thank you everyone for your insight :) 

@Kevin Cullen

Absolutely

These are typically called specifications

As noted communication and a very clear contract are important. Let’s take paint for example, painting all the walls one color and ceilings a color is a lot more affordable than different paint colors in every room or having accent walls in a home.

Certain flooring is more expensive as well, 3” wide wood flooring takes more labor than 5” as another example

Thus being clear with what finishes you are wanting will impact pricing and no one likes surprises

@Kevin Cullen My contractor works with many other investors. He is familiar with the items that are the best quality and the best value for the cost in the types of properties I own. He also understands that I want to have a nicer quality rental than many of the other investors he works for so when it comes to the finishing touches he keeps that in mind.

We collaborate on things he thinks I might like to have an opinion on but pretty much I let him have the freedom to pick and choose materials and then if there’s an option such as between two vanities or two types of flooring he sends me pictures of the materials and I make the final decision.

When you say multi, do you mean larger multi like 100+ units or small 1-4?

I think we don't have as much small multi for sale as many other parts of the country, but we do have some 2 and 4 units.

Probably to break even you'll need 30-40% down in many cases these days.  Rent seems to have stabilized this year, while sales prices continue to climb.   I expect a big crunch is coming though where no or little larger multifamily will get built for a few years when this batch gets finished.  Many with 2-3-4% interest rates in single family won't move up to a 7% interest rate and newer homes will probably be in 350-400K range and up which will be out of reach for many 1st time buyers.  So with these and some other factors we should get some nice rent bumps in a year and continuing for several years.

I don't know much about ATL market, I have invested in a couple of downtown apartment buildings there, and as best I can read the market it seems pretty much the same to me on pricing and demand.  I've heard there seems to be some pullback in tech there, but not 100% sure that is true.

Speaking from the Contractor's perspective......first of all - bless your heart for even thinking like this! It will make your GC very happy, help keep the job on schedule and keep the cost down overall. And not to mention keeping the dreaded Change Orders to a minimum....they are the ultimate job killer.

I used to have a multi-page (depending on the size of the job) checklist where I asked the client - as soon as we signed the contract - to identify in writing virtually every design choice and sign off on it....right down to the drywall corner detail and texture, the kitchen counter edge detail, etc. Plus all the fixtures - electrical and plumbing....knobs, light switches and plugs, cans, pendants, faucets, appliances, etc...everything.

And yes, they are concrete rules, mainly for you. It's not the Contractor who is constantly changing things once the job gets going, it is the customer. I make these a legal document, referred to in the contract as 'Exhibit B' or whatever you want. And you both sign it and stick to it.

Effective communication with your contractor during your duplex rehab project is key. Creating a detailed design document including paint colors, faucet details, hardware, and finishes is a great start. Describe your desired style and mood clearly, using images or mood boards. 

Allow for flexibility, as unexpected challenges may arise. Maintain clear communication channels through meetings or emails and prioritize decisions that impact the project early on. Encourage feedback from your contractor and update the document as needed. Respect their expertise and be open to their suggestions. If design choices affect the timeline, communicate this clearly. 

Review the document with the contractor before starting to ensure agreement. Define completion expectations precisely. This approach ensures everyone is on the same page, enhancing collaboration and project success.