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All Forum Posts by: Stephen Gallagher

Stephen Gallagher has started 7 posts and replied 80 times.

Post: How do I figure out what type of work my property needs?

Stephen Gallagher
Posted
  • Real Estate Agent
  • Hillsboro, NH
  • Posts 80
  • Votes 54

Start with your AHJ.  The local code enforcement officer can alert you to any outstanding compliance issues or any violations outstanding.  They also may be able to complete a walk through with you and advise you on code violations.  Most code enforcement will not offer design advice but will offer violations.

The Fire Inspector, Fire Marshal may also be a great place to start.

Meeting with local REI groups and making contacts with other investors in your area may open up dialog of whom to use and whom to stay away from.

Most fire departments are loaded with great contractors in all fields and or can share with you whom they use.

Networking, knowing and using your resources, and open communications will give you insight into establishing your own resource list with those you would want to keep calling.

Stephen

Post: Best way to find local contractors?

Stephen Gallagher
Posted
  • Real Estate Agent
  • Hillsboro, NH
  • Posts 80
  • Votes 54

I am not familiar with your market, but I would not hesitate to use services like home adviser, Angie's List, Smith, Thumbtack, or any of the other lead acquisition companies out there.  You may not get the cheapest person, but you should get multiple contractors that you can leverage against the other.

There are also Face Book yard sale groups everywhere and I have gotten many leads from those.  Craigslist also has contractor sections.  

Reach out to many, until you can find some you can work for and are economically comparative.  No need to hire the most expensive and if they are cheapest there may be a reason.  Every region has different rates and cold calling from the yellow pages is still an option.

Good luck

Stephen

Post: What building codes have you been burned by?

Stephen Gallagher
Posted
  • Real Estate Agent
  • Hillsboro, NH
  • Posts 80
  • Votes 54
Originally posted by @Account Closed:
@Brian Ploszay my understanding is that if you open the walls up you are obligated to bring the electrical work up to code, and if not it just gets grandfathered in

 In dealing with code there is no such thing as grandfathering in an existing violation.  If the NFPA codes, the ICC codes or local ordinances and amendments are enforceable, you will be subject to accommodating them.  The AHJ (Authority Having Jurisdiction) makes the deciding factors on what needs to be brought up to code.  Typically there is a trigger that activates current codes.  some jurisdictions require code compliance with any upgrade 25% or more, some are 10%.  Typically the codes most commonly enforced are those dealing with public safety and public health.

Public safety relate to things like smoke/CO detectors, Egress windows, two means of egress our of bedrooms, Chimneys, stairs, and electrical.

Public health relate to things like water and sewage, as well as HVAC.

The problem with code language is the varying levels across states.  There are two code language creators, the International Code Council and the National Fire Protection Association.  The code writing entities share a lot of the same terminology and requirements but just as the names vary, so does the content contained in the text.  ICC has been around since around 2000 when the BOCA, Southern Building Conference and nine or so other code entities merged.  

The merger created a great step to code uniformity across the country, but there is still much work to be done.  Local Building codes, and amendments to the published codes take precedent.  The code is unenforceable if the state does not adopt it.  Across the country states are on different codes cycles and this too causes confusion.  The best advice is when you have questions or concerns, consult the AHJ or a local contractor familiar with the requirements.

I have been involved with several flips that purchaser didn't realize they would have to upgrade the smoke detectors, that adding a second bathroom would require adding an electric water heater or expansion of the existing boiler, and that gutting the drywall/plaster would trigger a replacement of windows to meet the 20 wide by 24 tall 5.7 sq. ft. requirement of an egress window, even though there were already replacement windows installed.

It are the little things with Code requirements that can burn your rehab budget.

Stephen 

Post: Home Inspectors Report of finding on Residential Electric

Stephen Gallagher
Posted
  • Real Estate Agent
  • Hillsboro, NH
  • Posts 80
  • Votes 54
Originally posted by @Brian Ploszay:

I often buy older houses and I bring my electrician in to update the service, panel box, install GFIs, remove 2 pronged outlets.  Add new circuits if possible.  Remove items that are not to code, etc..

My electricians are so good that I really don't get too involved in the process.  

 That is the best advise.  Wiring is not a hobby.  Bring in a professional, address all electrical issues right after taking ownership, and have peace of mind for the rest of the time you are the owner.

SRG

Post: Investing in the future

Stephen Gallagher
Posted
  • Real Estate Agent
  • Hillsboro, NH
  • Posts 80
  • Votes 54

Investment Info:

Single-family residence buy & hold investment in Hillsboro.

Purchase price: $157,500
Cash invested: $51,000

primary residence. looking to Heloc out the equity and buy rentals. CMA's come in around $230,00 owe $107500. Should be a pretty good heloc once enough time has passed to acquire.

Post: Flip after remodeling and living

Stephen Gallagher
Posted
  • Real Estate Agent
  • Hillsboro, NH
  • Posts 80
  • Votes 54

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $124,000
Cash invested: $3,500
Sale price: $313,000

Had nightmare with tenants. used a service to acquire tenants and they ended up putting a sex offender in the home. The neighbors were in an uproar, police were involved and turned into a huge nightmare. Took six years for the tenant to move out. He had more rights than we did. We moved back in to avoid capital gains and are happy to no longer have that residence. Certainly was a good deal and the sale is what has gotten me interested in doing real estate.

Post: Flip after remodeling and living

Stephen Gallagher
Posted
  • Real Estate Agent
  • Hillsboro, NH
  • Posts 80
  • Votes 54

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $124,000
Cash invested: $3,500
Sale price: $313,000

Bought as a primary residence, then moved into our vacation home and rented this one out. moved back in six years later and lived in it for a while. recently sold and used money to pay off bills and buy current single family.

Had nightmare with tenants. used a service to acquire tenants and they ended up putting a sex offender in the home. The neighbors were in an uproar, police were involved and turned into a huge nightmare. Took six years for the tenant to move out. He had more rights than we did. We moved back in to avoid capital gains and are happy to no longer have that residence. Certainly was a good deal and the sale is what has gotten me interested in doing real estate.

Post: Flip for profit after living and renovating

Stephen Gallagher
Posted
  • Real Estate Agent
  • Hillsboro, NH
  • Posts 80
  • Votes 54

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $124,000
Cash invested: $3,500
Sale price: $313,000

Bought as a primary residence, then moved into our vacation home and rented this one out. moved back in six years later and lived in it for a while. recently sold and used money to pay off bills and buy current single family.

Had nightmare with tenants. used a service to acquire tenants and they ended up putting a sex offender in the home. The neighbors were in an uproar, police were involved and turned into a huge nightmare. Took six years for the tenant to move out. He had more rights than we did. We moved back in to avoid capital gains and are happy to no longer have that residence. Certainly was a good deal and the sale is what has gotten me interested in doing real estate.

Post: great purchase turned bad

Stephen Gallagher
Posted
  • Real Estate Agent
  • Hillsboro, NH
  • Posts 80
  • Votes 54

Investment Info:

Single-family residence buy & hold investment in Washington.

Purchase price: $63,000
Sale price: $60,000

Bought as a vacation home. Used equity to fund another business. Ended up moving in as primary residence for five years, market tanked and we sold paying $3000 toward closing costs to get out from underneath it. Was in a great area but no buyers and no real employment opportunities in the area, was a difficult sale when the recession hit.

Post: Home Inspectors Report of finding on Residential Electric

Stephen Gallagher
Posted
  • Real Estate Agent
  • Hillsboro, NH
  • Posts 80
  • Votes 54

Greetings all,

Just getting started in making Real Estate my living, but not new to owning property, being a landlord, or dealing with problems. I will share some of my own stories later, but for this post I wanted to focus on some issues reported in home inspection reports. I'd like to discuss three topics found routinely as issues in reports from home inspector’s, I have been asked to review and or repair. These topics come from my 25 years as an electrician, and the call to complete reviews, repairs and if needed, letters of refute and or dispute for sellers/buyers.

There are many areas that could be focused on, but for now I am going to focus on the non-grounded (2 prong) receptacle, Ground Fault Circuit Interrupter (GFCI), and panel grounding. Before I start my discussion I preface this information: Coming from a Master Electrician Licensed in New Hampshire, Massachusetts, Maine and Vermont, acknowledging the fact that other states may or may not follow the same promulgated regulations; may or may not be under the same requirements; ultimately the answers you may need or want should come from the Authority Having Jurisdiction (AHJ) in your region. The four states I practice as an Electrician currently enforce the 2017 National Electric Code (NEC) published by the National Fire Protection Association (NFPA) As NFPA 70 the National Electric Code. Having said that, each state also has their own state building codes and their own amendments to follow, making it difficult to give blanket statements or hardened opinion without giving due regard to state amendments. The information explained below is based on the 2017 NEC and may or may not be consistent with your State; county; local area.

Two prong receptacles come up often with any house built earlier than the 1990’s. The normal receptacle prior to the 1970’s was two prong ungrounded receptacles. Often through the 1980’s and 1990’s people would replace these two prong receptacles with three prong (added Ground), without updating the wiring that protects the user. It is through the grounding wire (bare copper, green wrapped, green/yellow wrapped) protection is provided. This “Upgrade” has caused users to feel the tingle of electricity, because there is no grounding conductor providing the path of least resistance back to earth. The unbalanced load from the Ungrounded conductors (hot or black) is carried by the grounded (white AKA neutral) conductors, therefore the white conductor is not neutral and should always be considered, a current carrying conductor. This replacement of non-like receptacles, forced the technical committees and code writers to come up with language in the code, identifying this practice as not up to code and creating language that would allow enforcement of this practice. Knowing that it would be difficult to enforce and the obsolescence of two prong receptacles an alternative needed to be provided. Rewiring the circuits to provide the ground is a costly option, one that routinely requires the rewiring of the home or at a minimum the specific circuit. The newest alternative is to replace the receptacle with a Ground Fault Circuit Interrupter (GFCI). I’ll discuss GFCI next. So currently there is just a few means to remedy the two-prong dilemma. First and foremost, if you can find them, the replacement of like receptacles is appropriate, but does not afford the protection of grounding. Many manufacturers have discontinued the production of non-grounded receptacle. Rewiring is the best option, but also the most expensive. Rewiring the circuit could mean rewiring the entire house, which could trigger other expenses like upgrading the panel, meter socket, and smoke detectors. The most economical and code compliant replacement is to use a GFCI receptacle or if possible, in the panel using a GFCI breaker.

Ground Fault Circuit Interrupters have been around since the 1980’s in receptacle form and technologically have developed significantly in the past three decades to the circuit breaker and use in the panel, protecting the entire circuit downstream from the breaker. The GFCI is a solid-state technology, that works off the principal of, what goes in must come out. The circuitry in the GFCI works on the recognition of a 4 to 6 milliamp difference (Most Commonly referred to as 5 Ma) from what is flowing through the receptacle or as supplied from the breaker. The only accurate way to test the function of the GFCI is the test button found on the receptacle or the breaker, as the manufacturer literature explains. Home inspectors will often write up that a circuit that needs protection (within 6 feet of a sink, basements, garages, etc.…) is not compliant with some recommendation to seek a qualified electrician to make repairs or inspect. This is often because they use their plug testers trying to trip the GFCI or breaker. These plug testers are not consistent with manufacturer recommendations and require a ground reference for them to the work. If the test function is working on the receptacle or breaker, the circuit is protected. The plug-in tester can be discarded. This is also why the NEC allows for non-grounding (2 prong) receptacles to be replaced by a GFCI. When utilizing this method all receptacles downstream from the protected GFCI receptacle need to be identified as non-grounding or replaced with a GFCI themselves. This is perfectly code compliant. That having been said, it is prudent to say that a complete rewire is the safest solution.

Panel grounding is the foundation to the need for re-wiring circuits, upgrading receptacles or ensuring that grounding is safe and code compliant. Section 250 of the NEC is the chapter to look at for grounding should you choose to follow up, but these points are easy to understand but not always identifiable. To understand the grounding conductors, one needs to understand the utility and how power is delivered to the house. This happens either through a service lateral (underground) or service drop (overhead). The Utility company will deliver two ungrounded conductors and a grounded conductor to the meter socket. The two ungrounded hot conductors, red and black, and the grounded (white/neutral) carry the power to the meter. The unbalanced load from the two hot conductors, is carried by your white wire, often miscalled a neutral. Each hot leg brings in 120 volts for total of 240. If one of those hot legs drops out, the grounded (white) conductor will carry the balance of the load. Because of this, the white wire cannot be neutral and should always be regarded as a current carrying conductor.

The meter socket is the point of termination form the utility, and typically the transfer of ownership and responsibility. Some utility companies use the point of attachment in lieu of the meter socket. Some meter sockets also serve as the point of disconnect. This is becoming more common and required for the protection of firefighters. A Meter Main as often called, has a built in disconnect manufactured with the meter socket, or has a standalone disconnect, outside and astride, the meter socket. If there is no disconnect outside than the disconnect or first termination point will be at the main breaker, inside the house panel. It is here at the first termination point that a grounding conductor needs to be added. This is the bare copper that goes to grounding rods, water meter, UFER ground or any other acceptable method as identified in the code book and accepted by the AHJ.

If the first point of termination is the main breaker panel inside the house, then it is perfectly code compliant to have the white wires and bare copper wires, attached to the same termination bar inside the panel. However, if the first point of termination is outside at the meter main, then the grounding conductor shall be attached to the meter main and a four-wire service entrance cable shall be provided to the remote house panel, located away from the meter main. Should this occur than the grounding wires should be secured to a ground bar, separate from the grounded (white) conductors. Often home inspectors fail to recognize the need for a four-wire service entrance conductor from the meter main to the panel.

This post hopefully helps identify some misinterpretations and give readers a little more knowledge for their purchases. If you have any questions or need more specific information, feel free to reach out to me.