All Forum Posts by: Logan Jones

Primary residence rehab “hiccups”

Davis County Utah

So yesterday I got a call that My moms primary residence rehab was due to be complete around December 15th but her contractor parted ways as of yesterday. She is two weeks out from appraisal(we already extended deadline once) and after walking through there is a decent amount of work remaining. (I’ll put what needs done on the bottom of my post)

Im mostly looking for a path forward. She is stressed because she is living without a kitchen and has a travel nursing contract she is supposed to leave the state for in early January so will be unable to manage contractors. (The work was originally supposed to be completed in October but after a change of contractors and some added work they had agreed on December 15th) she needed the appraisal to go through because she wants to move forward on building up a retirement portfolio (partially rentals) The deadline for the appraisal can be adjusted Again I believe but there may be a fee for doing so. She also had a budget at the beginning of the project which is not all used up but I worry finding a new contractors on short notice may put us close to hitting it given the remaining work but I’m not experienced enough to know.

Is finding a good contractor on short notice possible?

What would you guys do walking in on this situation?

My understanding of the work that needs done is as follows

The largest project is a hole that has been dug with a drain in place for an exterior concrete staircase to the basement but the stairs still need poured. (There is now snow in the hole but the drain/pad and basement door are already in place) the rest is moving some plumbing in the floor for a bathroom (about 7 feet) and then some minor electrical (a couple fixtures & wiring existing electrical for this area into the circuit breaker) drywall, flooring, trim/doors, cabinets, painting, placing appliance’s and setting the toilet, tub & two sinks. The unfinished section that she was hoping to have done is a studio apartment and master bath adu. It is a approximately 28x11.5 foot rectangle with a 9x5

Foot master bath.

Any and all advice would be greatly appreciated!

@Hayden Boehlefeld

Are you looking to fund it all in cash?

@Andrew Scheuffele

I’m currently partnering on a deal with some close friends and family as I’m just starting out and I’m more comfortable with that. I’m happy to start building a relationship and talking about strategies etc. with other new investors. In the future that could definitely lead to partnering on a project and I’ll keep you in mind as an investor oriented agent. What markets are you looking into?

What is the best route to build relationships with wholesalers in your market? 🛣

Are most wholesalers open to putting any investor on their list or is there some sort of requirements? ✅

Are there any reputable wholesalers in northern Utah who work with conventional financing or is everything done cash only? 💸

Are wholesalers willing to work with agents?👨‍💼

Any other things about working with wholesalers you think I should know? 🧠

Thanks in advance guys!

Feel free to reach out I’m always happy to visit about real estate🏰

Im trying to focus in on exactly what type of asset I should be looking for and I am having a hard time narrowing it down to an asset type let alone a local market. I know I should start from a goal and work backwards but it seems that there are many options that could work but it’s hard to find one that specifically speaks to me and impossible to know precisely how to achieve my goals in the most efficient manner. How do you weigh personal interest against the potential risk factors of doing something new, especially when just starting out?

@Jeremy Smith

Welcome to bigger pockets! Glad to have you in the community!

@Steven Scott Bang

Welcome to bp and the Utah market! I feel you on the Financial freedom. It’s the ultimate investing goal for me as well and Real estate is a great asset to get us there. Here’s to long term wealth!

@Josh Brimhall yeah not far at all. I grew up there and have family still living in Syracuse.

@Josh Brimhall it seems to me like a cash out refinance or a 1031 exchange might be 2 good options for you to look into.

Congrats on that equity growth!

@Tony Campbell I’m a newbie as well. So this is just me working through what I experienced trying to sort out the same issue. I would decide what kind of property you’re looking for on your first deal. The amount you will need depends on the deal/type of deal you’re going for. With partners or syndication it could be far less than if you plan on buying a large property and financing it on your own. Another important factor is credit history and rating (if going for conventional financing) so it’s always a good idea to start paying attention to that and working on building a good history. Once you know what type of property you’re looking for you can look to lenders for interest rates and how much you will need to put as a down payment. Depending on the project you could need other reserves for renovations, vacancy, etc. it really just depends on your goal. If you’re househacking you might be able to get away with as little as 3.5% down and some mortgage insurance whereas on an investment property you would most likely be looking closer to 20-25% down. For example on a $380,000 duplex that spread is between $76,000 & $91,000 as a down payment. I hope this helps!