All Forum Posts by: Peter Mckernan

There are many, they need to be market specific.. For example, this can be adding square footage, adding an extra unit, or adding a pool in a STR market/luxury market. This does not mean you add something that is a luxury in a market that it does not fit. You need to really know what is selling, why it is selling and what to do with that house/townhome/condo. That is why I believe IMO that opendoor (old zillow flipping homes model) does not work. They buy properties, do not know the area put substandard upgrades in the property then sell them for market value or try to and the property sits for a long time. These deals end up sitting for a long time and they lose on it or breakeven. Yes, there are times they do win and make money, but not on a frequent bases in my experience.

I agree with 100% on that for sure! Thanks Bruce! 

 Yes, you are right; that is true for California.. Not sure where Ana, but every state as you know is different. For example North Carolina is $40,000 or less, Texas there is no limit, and so on. I just was giving a rule of thumb (framing was what I was bringing into the convo adding sf/adding bed/bath etc. without stating framing). But I did not want to give specific examples with no context on a location for her. 

What I see a lot of people do is overthink it and then either stop in their tracks, or wait for years to get started due to the overwhelming data that they get on what they want to do. Giving them a laundry list of items will typically just overwhelm them and create more confusion instead of giving them a smaller step process to get more confidence to get the ball rolling and then they can get into the weeds on their state when they get the contractors out there, have local bids come in, and dial in their plan. 

I have had contractors just do a small list on a paper napkin, and some do something on a word document. The other contractors that I have worked with gave me a full scope with detailed line items of what will be fixed, how much the labor is and how much the material is going to be. We review and negotiate then sign on the line. 

I would not ask for a template from anyone, the better the contractor the more professional the contractor the better they are with documentation and getting things in order for templates. If you really want one then I would have one drafted by an attorney to make sure you are square on all issues, liabilities, scheduling etc. 

The high quotes for the electricians will be way cheaper than having your handyman do it and it causing damage, causing a fire, or even worse causing a fire later when someone is living there and that person/persons getting hurt because of the work being done by an unlicensed worker doing the work. 

The 6 things I use licensed workers for.. Electrical work, plumbing, foundation, windows, roofing, and AC/Heat. All the rest can be subbed out unless you are doing a full remodel by adding square footage to the house/converting a space (bath/bed etc).

I agree with Nathan, you should bring more to the table and lay it all out there so that we can give you the exact detailed answers you are looking for to be successful. Not knowing the full story will only give us responses from generalities. 

Good luck! 

Agreed with everyone on this thread, this does not warrant a lawsuit due to those things that could have been controlled by you as the homeowner. You could tell them to cancel the listing and you will find someone else to list it after a month not 4 months (the market take is subjective too, all dependent on what your house has compared to others, where it is located, the size of it, and so many other factors). The rehab expenses don't line up but they are not stealing, I would suggest having a zoom call or sit down with their PM or account manager to see what is not lining up and where you see issues compared to what they have on their sheet. 

These things going to court you have to Steel Man the argument and if you can do that with a good base for your side being in the right/wining the argument then you may be able to win in court. For example, they have not sent us the rent they owned us for the last three months, and here is paperwork to show it is not in our account, here is the contract with them stating they would pay on this day each month, and here is the title of the house in my LLC/name to show you we own the property too.

1) what's your range for remodeling a kitchen completely (granit, backsplash, tiles, etc)?

Are you vendor direct could be a lot cheaper on countertops, and could save you money.. Sometimes the contractor will put a % on the top of the materials to source it.

2) what's your range for remodeling a bathroom?

What are you doing? Kit showers or tiling, or tiling the shower (hot mop or tub shower then tile the rest) all are different

3) what is the cost to renew the floor with a LVP?

Once again, who are you getting it through, what is the SF? Labor/material are going to be different and need to factor that in

4) new roof, new HVAC, new water heater, ac panel, replacing plumbing to PVC

These are very variable, if you are getting this from a licensed guy to do it and unlicensed.. is it a big shop or a local shop doing it, is the GC doing it they will put some money on the top so it will be more money

5) framing (creating new bedrooms or baths)

I would get all these quoted from a good couple of licensed guys and unlicensed to know your numbers to cents

Might have a hit on credit a bit (not as much as foreclosure), and it will show it settled for less on the property.. The one thing you need to know is that buying the next deal (home/SFR/Townhome etc.) will stall you from buying anything on FHA/VA (gov backed) for 2 years and conventional for 4 years. So if you go buy a home for yourself you won't be able to do this until the 2 or 4 years is up depending on the loan you use.

For the first part, does 3* mean 3x the purchase price?

I recommend doing a flip when you do not have any money. I would want to see if you could partner up with someone and split the profits 50/50, 60/40, or 80/20.. However, you agree with it. 50% of a deal or 60% or any number is better than no deal. Also, running a flip with no money and hoping you get a good return with all the other stuff going on in the background starts to add stress, and you end up not enjoying it. This could create a disdain for flipping properties and not continuing on the path..

The other option could be wholesaling it to start a path to build a war chest to go out and do the first flip with your own money down.