All Forum Posts by: Nigel McFarlane

Hi,

Does anyone know a good general contractor in the Atlanta metro area? I've recently started analyzing potential BRRRR properties and I would need a contractor that could bring the property to it's highest use and value.

I currently live out of state but my business partner lives in the area and could meet with contractors for quotes.

Looking forward to your responses.

Thanks

-Nigel

Thanks for all of the feedback. I knew those numbers had to be ridiculous. 

Has anyone read the Book on Estimating Rehab Costs? What were your thoughts and does it apply for any market? Asking for a friend... (myself). I have some offers floating right now and will be getting bids from more contractors, I would love to be able to prove to them that I'm well informed.

Again, thanks for the feedback.

My realtor just told me the house sold for $690K after 3 months on the market. It was originally listed for 850K!!! I'm assuming they were overly ambitious with the ARV.

I'm going to check the property records to hopefully find the investor. Maybe they would be willing to share more details about the rehab and how they estimated the original ARV.

@Brian Ploszay Total square footage is ~1520. At $200 per sqft, this rehab should've been closer to $300K. The home is in a B neighborhood. None of the finishes seem very premium (the kitchen is very small). 

@Tim Johnson I think they used a draw schedule to pay out. That probably explains the same price listed multiple times.

@Ruddy Anthony Salazar Thanks for taking the initiative on this!

1) Sign me up for DTLA!

2) Monday - Friday (After 6pm) or Saturday/ Sunday (Mornings)

3) Twice Monthly

If you need help with planning, feel free to reach out

I came across this image on a real estate posting that recently sold in June 2018.

The final cost of the rehab according to this image was $375,000!!! The image was included in the listing so this could be a marketing ploy to overstate how much work was done. Is there anyone else out there paying this much for rehabs in LA?

Here's a list of what's included with this home:

New drywall & insulation

Asbestos abatement

New copper plumbing

New air conditioning, and Furnace

New recessed lighting throughout 

New bathrooms (two bathrooms)

New kitchen cabinets

Tankless water heater

New garage door 

New roof

Hard-wood flooring ceramic tile

New granite kitchen cabinets

Updated Fireplace in the living room

New interior and exterior paint

I'm no expert but this seems extremely high. I'm evaluating a couple of potential fix and flip properties and there's no way this can be the expected expenses, especially considering that there is no mention of any foundation issues. I've gotten quotes for a house the same size and build that came in ~$220k less than this.

What are some of your opinions/ insights? I'm sure others who are just getting started would like to hear the opinions of the experienced investors/ contractors in LA.

@Account Closed, I sent over a PM. I look forward to connecting soon.

Hi @Manolo D. Thanks for the recommendations. Also, thanks for the heads up on the Self Sufficiency rule. I've never heard of this before. 

@Andrew Kerr That is great advice! My wife and I are in our 30's so hopefully we're a little more financially intelligent than our 20 year old selves.

It seems as though that initial house hack was what set you on a successful path. I'm hoping it can do the same for us as well. 

If you don't mind answering, how did you fund your first deal at 20 y/o? FHA?

@Andrew Kerr Hey Andrew, congrats on the third property. It's great to hear that the method works and can be used for multiple properties.

What's the thing you remember most about investing in the first property? Did you learn any lessons that you later applied to the other investments?