All Forum Posts by: Steve S.

Borrowing money right now is so damn cheap they're practically giving money away at the bank it seems. I'm definitely in the pro-leverage camp. There's no day like today to get started in REI. Hope for the best but be prepared for the worst.

Can you handle the unit being vacant for 3-6  months? Can you handle 2-4% point increase on your loans? If the answer to those questions are yes.. you should start giving it a serious look.

When doing work, I would never want to do job and have it look poorly upon me. So if/when something comes up that will compromise the outcome of the job I tell the owner immediately.

With respect to your painter or the guy you had repairing the soffits. Both jobs you need to be working with good material otherwise if you just do the job you're only "putting lipstick on pig" and not dealing with the real issue, in under a year the job will look like crap and the owner will be unhappy. 

On the job it's almost a "no-win" situation, if you say there's going to be more required for the job to be done right they get upset. If you don't do the job correctly and do it cheap, it will also make the home owner upset.

I recommend that  you do a walk through of the job you want done with the trades person. Talk about what you want done and ask if in their experience what potential problems could arise. 

You want your gutters done, they may have to repair/replace some of the fascia. Ask what's the price for them. Remember that's EXTRA work. There's the getting the wood,cutting it, painting it all before you can do the one job you were hired to do which was install the gutters. Someone that's done the job enough already knows to have the right tools and parts handy in their truck so it minimizes "down time". But there instances where you just run into stuff that you don't expect.

You're tearing down the drywall and you find a nest of carpenter ants and they've eaten into the 2x4 studs. Sloppy work will put up an new sheet of drywall and not treat the issue. Done right you get rid of all the ants, replace the compromised wood and then do the job you were hired to do.

The walk-through you do with the trades person should be like a casual interview. You should be asking a LOT of questions. You should look not only at the fact that they can answer the questions but HOW they answer the questions. Do they look like they're making the answers up on the go or do they really know what they're talking about. Do they seem frustrated with your questions (this is always a big red flag!!!) or are they willing to take the time and go through the questions with you.

If the only question/answer you're concerned about when you get a quote is "how much" then getting caught with unexpected costs are your fault. You are 1 on 1 with a professional and you're not willing to learn. Pros will pick up on this. Many are the type that if you don't ask they're not going to tell. IT's not that they're hiding anything from you, it's just that they're not going to say more than they have to. 

I'm always amazed at people who go shopping and will spend 1 or more hours trying to find a pair of pants for $50. These are the same people that will hardly spend 10 minutes doing any research on what needs to be done for maintaining or upgrading a $300K house! Spend an hour or two look up some articles and videos on what job you're getting done, bring in 3+ trades people to give you a quote and ask a boat load of questions! I will assure you you'll have a much more positive experience dealing with contractors and trades people.

@Michael Guzik it's a little bit of both. I've been doing reno work for as long as I could hold a hammer it seems. The auctions I just keep an eye on the paper as well as a few online sites.

The remnant stores for flooring you can easily find by asking around. Also look for stores that are in "industrial" areas. Not high traffic strip mall areas but deep seeded. They usually have a lot lower overhead and supply to commercial installers but allow walk ins. Also look for "cash & carry" type stores.

It all comes from years of networking, asking questions and just doing some comparative shopping.

Take a week and look at all the suppliers in your area for just one type of item, and start working from there. In under a year you will have a very good idea of where to go for what items. Be friendly to the people that work the desk at many of the places if they don't have something they can frequently tell you where you can find something similar as well.

Just an idea, but if you have a really good tenant, what about having them act as your building manager. They can show the other units, deal with contacting your list of trades people when issues arise and for that they get a deduction in rent.

I suppose it all depends on how you see yourself doing the repairs.

Do you see yourself doing them by yourself or are you going to hire out.

Personally I LIKE to do the work myself. It's my hobby or my stress relief if you can believe it. I do work a bit slower than most contractors, and I usually do the main work myself. I hire help for demo, landscaping and painting. I do the drywall-taping, framing myself and for plumbing & electrical I will do most of the minor stuff myself but for large items or stuff that needs to get a permit I will hire out.

Having said all that, if/when I estimate repair/reno costs it's always good to have an understanding of the materials that you will use. 

What does a can of paint cost you? How much area can you cover with that paint?

What do studs cost you in your area? What would it cost you to frame a wall 10' long?

How much does sheetrock/drywall cost per sheet? Standard 4x8 sheet how many will you need to do the room?

Those are just the basics that you should be able to do in your head. Each electrical outlet is another $3. I ballpark $200-500 for each window. $300 for each exterior door and $100 for each interior door. $4/sq foot for flooring.. you get the idea. Now I will usually add 20% after all calculations for waste. And if I need "help" I usually pay my hands $100 a day, for professional trades people you can expect $300 a day

There was not much damage in the unit, you had first and last months rent in advance plus a damage deposit. What is the big issue? How much are you going after her for? Is it really worth it?

This just might be my opinion but at this point even if you're out one months rent which definitely sucks it may just be easier to start showings.

I don't know what the L/T laws are in your county/state but perhaps send a notice to the emergency contact with something to the effect of pay or quit with an option for a release out of the lease and be done with it. turn over this unit and get it out on the market again.

I have read all the replies.... so far I have no idea why anyone would want to even bother purchasing a new stove when the cost of all repair parts are under $100. So you could try replacing all the parts and either have a stove that's good as new for under 2 hrs of repair work for a novice or 30 minutes for someone with experience.

Where do I save money?

Flooring: I will go to a place that sells "remnants" or end of roll material. Usually these have been purchased to satisfy a commercial installation and they don't have "enough" to complete the job or they have material left over. You can get this stuff VERY cheap if you're willing to find the sources.

Windows: I have two contacts I use for this. Basically window manufacturing companies make 1000's of windows a year. Many are "custom" orders that for one reason or another aren't a good fit or are cancelled orders.

Once a year I take my window measurements to these two places and "look at what they have in the back" ... The stuff that will hit the dumpster at some point. If there's anything that's exact or even 1/2 inch off (you can always add material to the frame then just slightly wider trim) I buy it!

Installations: I'll say 70% of the time I will do the install myself and save on the labor costs. Usually some of the money I save on the DIY I then put more of that into the materials.

Paint: I don't buy cheap paint, but I do buy the same color swatches for all my units. I'm kinda into a neutrals phase with taupe or burgundy accent. This means that when a tenant leaves one unit I'm not digging around trying to find new paints, I already have some on stock. Usually my local store will have a BOGO sale in the summer. I will also pick up a few cans of paint with out them being mixed with color, and if I'm out of a certain color I can go get a can color matched with extra stock I already have on hand and have paid  1/2 price on.

Tiles: I will go to a "re-store" or habitat for humanity store at least once a month to see what they have in stock. These are stores that commercial jobs buy a LOT of product for a particular job and when it's completed they donate it these stores. The stores sell the extra material at a very large discount from retail, and the profits go to help build homes for those are in need. Sometimes bulk orders of generic tile stock sometimes comes in. If there's enough to do a full bath or 2'x15's of back splash I will buy it all and keep it on stock.

I also keep an eye on local auctions that list building materials. I have in the past purchased wire and lumber for cents on the dollar.

If this is a standard range but has the heating element "covered" I can almost guarantee that the element has burnt out. If that's the case $20 bucks and approx 4 screws and you're done.

If the heating element is exposed and doesn't show to be burnt out you can use a voltage meter at the contact points of the element and also in the outlet. If they're the same it will be your thermostat. If they're different usually the regulators.

If to the right of the stove and to the right of the cabinet is a hook up for the washer that means there's already supply and drain lines in that area.

My first option would be to remove the cabinet to the right of the stove (keep the counter top) and you should have enough room to install a dishwasher right there.

Seccond option is an apartment sized dishwasher

Third option - no dishwasher! I personally hate them! They break down all the time. I have told my tenants if the dishwasher goes I don't replace it in the unit.