Quote from @Benjamin Sulka:
Nathan,
Kudos to you on jumping in and not being afraid to take on these large projects. Super inspiring for someone who is looking to buy his first deal this year.
If you don't mind me asking, how much $ did you have in reserves before you bought this property? Obviously 25% down on a $104,500 property is $26,125 and then the $22,500 anticipated cost to renovate puts you at almost $50k.
I want to jump into the game as soon as possible but don't want to lose my shirt if one unexpected capex comes up.
Would love your insight as someone who jumped into this thing!
All the best,
Ben
Thank-you, it has been a long road & a stressful one since closing. Another update is coming shortly. I'll message you some details as this is a public forum. But we had north of $30,000 in reserves. Also we are not doing ALL the renovations immediately, some of them will be done over the years of ownership, such as the roof.
What I would suggest, do some brainstorming on how much renovations you want to deal with. Such as cosmetic only (paint, light flooring & fixtures) or are you ok with getting a little deeper with plumbing/electrical issues, a bigger bathroom renovation etc.
Originally I only wanted cosmetic but I was having difficulty finding those without having to compete with many other investors. As I became more comfortable with making offers & learning more with the cost of work. I became more willing to take on bigger items, such as re-piping. That is something else you can do, call around & get some ideas on what things will cost. Such as a hot water heater replacement, flooring, HVAC work etc.
But in the end, things will ALWAYS come up. I didn't expect to need to re-pipe this quickly. I didn't expect to need to repair the HVAC or the surprise inspection by the housing authority that added $250 of repair work, or there being a week long freeze that upped my utilities by $450 for heating. Anyway, hope this helps!