All Forum Posts by: Ray Jhala

@Sebastian Marroquin Hey! Wow thanks for the detailed response. Lots of really good information.  I had a guy give me some similar advice but I was a bit confused about the "do the work first, then go get the permits" so thanks for bringing some clarity to that. So I've brought in several people to take a look at the foundation and there are no huge issues with foundation aside from some minor crack repair. No walls pushing in or signs of settling. (thank god). Most, if not all the cracks are at weak points (by windows or wall corners).  We never saw active termites and a foundation guy I brought in pointed out where a previous termite chemical treatment was likely done so I think the termites were an older problem. I will bring a termite company in to take a look nonetheless to ensure we are termite free.  The inspection I had done unfortunately did not reveal any of the several issues I've discovered since demo.  When we did the inspection there were tenants who were home and were pretty filthy and had belongings everywhere which made it a bit tricky for the inspector.  The moisture issues I wish had been caught on inspection but it surely wasn't. Luckily I still bought it at a decent price and this has been a huge education for me.  Even if I have to leave a chunk of cash in the property I'll consider it tuition and get going on the next.  

@Evan Polaski Gotcha, good to know, a lot of talk around permits is always doom and gloom.  Permits it is! Thanks alot Evan.  Thanks for taking the time to offer me some advice, I really appreciate it. 

@Martin L Anderson Thanks for the feedback Martin. I appreciate it.

@Evan Polaski Thanks Evan, I really appreciate the feedback. All great points.  One thing I figured was the permit process and inspections will at least give me valuable education on building code and how to do things the right way even if does cost a pretty penny.  Wow! permits to change a faucet/light fixture thats crazy.  Luckily my county is a little bit more lax than that haha. 

Hey Everyone! I purchased my first rental, a duplex, in January of this year.  After the tenants left last month I started the rehab process to bring the units up to speed and increase rents to market rates. 

The scope of work increased greatly after conducting demolition as there was lots and lots of mold causing us to take the first level (the property is a split level) to the studs. 

Due to some incorrectly installed windows/poor grade/foundation cracks the units have taken in some water which has rotted some of the framing(baseplates/studs).  We also found a few pieces of framing from previous termite damage that needs replaced.  

When I purchased the property the scope of work didn't include anything that would require permitting. However now that we have to replace some damaged framing (not a whole lot) I'm fairly certain we will be required to have permits.  Along with this I have now decided to put a pass through window in a load bearing wall to give the space a more open concept feel. 

I'm not entirely sure where to start however I have been warned by some others that the city inspectors tend to look for violations which can greatly increase the scope of work.  

Let me preface this by saying I first and foremost want to provide a clean and SAFE place for my future tenants to call home but I would like to educate myself in how to manage the process to ensure its cost effectiveness.

Thanks to anyone that has some advice for a new investor such as myself. 

@Matt M. Thanks Matt! I will definitely give them a call and see what I can find out. I appreciate the heads up!

@Erich Henson Gotcha! Thanks for the insight!  I'll definitely be hunting for the smaller local banks to get pre-approved at. Cheers and congrats on the refi to 5% thats awesome!

Nice job @Erich Henson! Do you mind if I ask what terms you were able to get on your cash out refinance?  I'm over in St Charles, MO looking to deploy the same strategy.Thanks!