All Forum Posts by: Nicholas W.

Thanks Francois.You're correct that you can't do your own plumbing and electrical at least in this municipality (that does vary.) The plumber and electrician pulled their respective permits. I didn't do any of the electrical and only did the finish plumbing (just attaching fixtures and drains, and setting toilets.) Technically that probably wasn't allowed but every thing was done to code and passed inspections.

Russell, I did not get any quotes from contractors. My type A personality and very high expectations would probably make for a hostile relationship with a contractor and that's something I've just accepted. I would estimate that a contractor would charge between $8k and 10k to perform all of the work that I personally did.

Thanks Chuks, I am conservative by nature so I always knew there was a chance it would be higher but even I didn't expect it to be that high. A big part of that is that in our area the market slows down dramatically in the winter and when I purchased I had looked at comps that had sold in the winter. The comps that sold over the summer were much better and gave me a boost.

Honestly, the rent was just an educated guess. This specific city is largely owner occupied and there are very few single family rentals. This is helpful because there is little competition for those who are looking for a SFR in that area but it does make finding reliable rental comps difficult. I figured that I could always lower the rent if I didn't get enough interest.

Nick, thanks for the compliment. 

The purchase loan balance was indeed $106k, but the down payment came out closer to $24k because of various closing cost credits and prorations.

So the total out of pocket cost for the project consisted of the $24k to close, $30k to rehab and $3k for holding costs (interest, taxes, insurance, energy bill, etc.)

After the rehab was completed, the house was rented and I had made 6 mortgage payments I applied for a cash out refinance. The bank did an appraisal on the house in the new rehabbed condition and determined it to be worth $229k. When refinancing a single family rental property the bank will loan 75% of the appraised value so $172k in this case. Out of that $172k the bank will pay off the existing loan ($105k at this point) and give me the balance, minus closing costs of about $2k. So I spent $57k and received $64k.

Side note: I realize that $172k - $105k - $2k equals $65k and not $64k, the $1k difference is a result of compounding rounding errors.

Hope that clears it up for you.

 Cris, the plumber did what's called rough plumbing, which is basically everything inside the walls/floors. I installed the tub, did the drywall, tiling and installed all of the plumbing fixtures.

Thanks Elijah, The purchase loan has remaining balance of $105k, the refinance loan amount is $172k and closing cost are $2k, the net comes out to $64k.

Thanks Blair, it was listed on the MLS.

 Thanks Carl, that must be a regional thing. Around here glass block is the go to solution for windows in showers. What is common in your area?

I would use concrete, asphalt, pavers, or turfblock. Giving code enforcement a reason to sniff around doesn't sound like a good idea to me.

Matthew, good eye and great question. My original plan was to refinish the hardwood floors. After pulling up the carpet I found some patches that were added perpendicular to the majority of the floor during prior remodeling projects. It would have cost much more to have those feathered in and the floors refinished (that's one of the few things I won't do myself) than to cover them up with LVP. Also if I were to refinish the hardwood I would have had to use a different flooring in the half bath and kitchen. Instead the entire house is the same flooring (aside from the full bath which matches the shower tile). I can't comment on the long term durability of either, both seem to have a good reputation though.