All Forum Posts by: Michael Barry

I'm new as well so I don't have mature systems. For MLS, I set up alerts through Redfin and Zillow that meet my search criteria (location, price, time on market, etc.). I connected with a few realtors to help in my search and they also have access to a network of off-market properties. I did plug into a few Facebook REI groups in Houston area but it's been mostly a waste of time there.

@Chris Hopper thanks for your input, much appreciated! 

If I want to do a boring old conventional loan with some light rehab for my first deal, I’m in the world of inspection. My alternative is asset-based lending and going down the route you talk of with no inspection contingency which means my offer needs to reflect that risk. On the flip side I don’t want to pay a bunch of money for inspections and end up losing the deal because the seller won’t budge when faced with the reality of large repairs needed, so I definitely understand that point and my no inspection contingency offer would account for those gotchas. 

Regarding cabinets, I’ve seen quite a few refurbished cabinets that look great for the price point of the rental and the neighborhood hence my question on replace vs. refurbish. 

Hi all, I’ve posted in a few threads about my goals and timeline.  At this point I’ve secured my lending and officially started the hunt for properties. We’ve looked at a few so far and me being an engineer and project manager, it’s all about the details to me (which can cloud the big picture). Anyways, here’s why I’m reaching out...I used the Bigger Pockets rehab guideline book to help me put together a project estimate spreadsheet where I can plug in all sorts of things.  It’s awesome to see a project scope of work and cost estimate develop. Of course, the estimate is only as good as the data being entered. 

The areas I’m looking in are generally 1960-1970’s homes. This one in particular has original solid wood cabinets that have been previously painted (poorly done). The cabinets need to be refurbished after ~50 years of use (finish, drawer slides, hinges, hardware, some isolated areas of damage, etc.). It’s about 20 linear feet of lowers and uppers. For rental property I would rather refurbish the existing cabinets and put a new countertop and new backsplash than install new cabinets if the cost savings support it.  Anyone have ballpark numbers for cost of refurbishing? Something like 50% of cost of new cabinets?

Ok next question is related to inspections. Besides the general inspection, anyone have advice on other inspections for plumbing, foundation, asbestos, etc. for older homes? 

For me, networking has been a challenge (busy with day job, young family and introverted).  Recently, I have connected with a friend who is an investor and is interested in partnering on some deals. I will be meeting some other investors in my neighborhood that I found through our neighborhood Facebook page by chance.  A neighbor posted a STVR she owns on the page and I just reached out and asked if she would be willing to chat about her experience.  Then another person with investment property joined the conversation. So I have two informal meetups with people in my neighborhood who invest and a good friend with experience who is interested in partnering up. So I feel like I’m making progress on that front.

I’ve linked up with a few lenders to get the ball rolling  on that front. Working on pre-qualification so I can really start shopping.

I’ve been talking with a few realtors/brokers as well and have started getting some traffic with off-market deals.

My next challenge is finding a few solid contractors.  We had some quotes on some jobs at our primary residence with contractors we’ve used in the past but the prices are Way too high for a profit-driven rehab. Perhaps they focus on homeowner retail type jobs and charge a premium and I need to find different contractors who are more reasonable. I’ve thought about offering to pay for a good GC to walk a property or two with me and we go step-by-step through scope of work and costs. Seems like a good way to interview the GC before awarding thousands of dollars of work, and learning what to look for and how to price jobs out. 

@Adam D Rinehart you are speaking my language, I’m a PE mechanical.  I’d enjoy chatting with you about this topic in detail.  I’m not educated enough at the moment to know how to evaluate the required repairs.  So of course as an engineer I started doing research immediately.  This particular property was pretty gnarly.  Had a prior foundation repair 15 or so years ago but there was what appeared to me to be a ton of work needed to the structure after repair of the foundation (uneven ceilings, wall buckling, broken windows, etc.).  I just didn’t feel comfortable making an offer at this time. I could have bid with a structural engineer assessment as a contingency. 

@Account Closed read my later posts. 

@Chris Hopper I’m glad I came to the same conclusion and didn’t chase this one. 

@Chris Hopper yes please check it out! 

The foundation settled so badly, the brick siding on a few sides is bowed out, the ceilings and walls were all out of square and drywall busted, windows with 2in gaps and the roof was bowed. 

I looked at the property I mentioned a few pages ago.  It is a no-go for me, major foundation and structural issues that I don’t want to deal with on my first investment. On to the next one!