All Forum Posts by: Brian Rossiter

I'll suggest another resource:  "Contractor's Pricing Guide: Residential Repair & Remodeling Costs Book" by RS Means.  It gets you pretty close on estimates in most localities.  If you're in an area with disproportionate costs of housing, like mine, it might be a little ways off.  Works well near the national average, though.

RS Means is the best; it's the one a lot of professionals use.  You have to buy a subscription to use it, though. 

For free use, I like building-cost.net.  Not as accurate as a professional estimating platform, but it's free and has a lot of construction options.  It'll give you a good idea of the order of magnitude of the total construction cost.  You can tell whether your actual cost will be closer to $100k or $200k, that sort of thing.

I'm a structural engineer not affiliated with a foundation repair company.  $300 per pier sounds awfully low to me.  I usually see them around $750 per pier, and where I live is around the national average cost of living.  If the industry leader in your area is quoting $850, their service may be worth it despite the higher cost, especially if no one else in town is known for doing a great job.

Twelve piers, on the other hand, may be quite a few more than you need. On a SFR, I usually find that five or six piers is typically the maximum number needed. I recommend hiring your local structural engineer to determine how many you really need. Foundation contractors will typically give you more than you need either (1) to make sure that the repair will work without any analysis to be on the safe side or (2) to make a bigger sale...or both. The engineer might cost around $500 or so but usually can save you a couple grand in piers.

Foam jacking is a terrific alternative to helical piers. It's econmical, and requires less demolition or excavation than the piers. On a project the size of a SFR, the costs can be similar, and the piers can actually come out costing less at times. Foam jacking can be far more economical on larger projects, like a high school in Montana that I worked on recently. Foam jacking came out a lot less than helical piers on that one. Find a local foundation repair company that does it and ask for a quote. Compare it to quotes on the helical piers.

The term "flooring" refers to the finish floor covering:  carpet, vinyl, hard wood, etc.  Flooring is not structural, and I agree that the statement you quoted does not include flooring. 

Depending on the amount that needs to be replaced, you can factor it into your cost of the deal, ask the seller for a credit, ask him to replace it, or work it any other way you like. If you're going for a VA or standard FHA loan, it'll need to be replaced before closing; otherwise, it's up to you and the seller to work out the terms.

I'd move the stove over to 1DB2434 or FHB24R and have empty counterspace where you're showing the stove now.  That flows better from fridge to prep to stovetop and leaves room between the cook and the person doing dishes (my wife and I like to work in the kitchen at the same time).  Empy countertop next to the sink is good laydown space for used cookwares before they're washed.

I also like the peninsula idea.

I wonder if a rehab of the third floor can be done with the second floor residents remaining in their units.  They would have to vacate for a few months to demo the third and reroof on top of the second.  Would you pay to put them up someplace else?  Would you end up losing some second-floor tenants because they are unwilling or can't afford to temporarily live elsewhere?  It could end up being a wash or even cost more to demo the third floor once you factor in indirect costs.

To answer the original question: The loan requires a minimum of $5,000 in eligible improvements. Most rehab items are eligible, and you have to accumulate this amount improving the function, health, and safety of the property before including smaller items like painting or appliances. The HUD 203(k) handbook specifies that luxury items and improvements that do not become a permanent part of the real property are not eligible. It gives the following blurb as examples of ineligible items:

"Barbecue pits; bath houses; dumbwaiters; exterior hot tubs, saunas, spas, and whirlpool baths; outdoor fireplaces or hearths; photo murals; swimming pools; television antennas and satellite dishes; tennis courts; tree surgery.  Additions or alterations to provide for commercial use are not eligible."

Although, as you might infer from the above posts (and other threads on the topic), some lenders may have more restrictive requirements or may not have a clear understanding of the rules.

Source: HUD 4240.4 Rev-2, 203k Handbook, Rehabilitation Home Mortgage Insurance, Section 1-7 Eligible Improvements.

Structural evaluations of existing homes is one of the many services I provide.  There's nothing in your photos that would scare me off.  I see a lot of efflorescence, which is normal for a block foundation of that age.  Step cracks are also common.  I agree with @Jeremy Gunn; fill the cracks in the mortar joints inside and out and paint the foundation. 

Your photo "normal_1443145119-crack2.JPG" looks like one block on the bottom course is misaligned.  If I'm seeing this correctly, I would take care to completely fill the space between blocks with mortar or epoxy to keep water out.

I would also thoroughly dry out the crawlspace.  A space heater and a couple of blowers would do the trick (unless something is still leaking in there).  Although, as @Account Closed points out, stopping any sources of water intrusion would be the priority.

Of course, this is all speculation based on your photos and testimony.  I'm sure if I were on the scene I could spot more things to fix or get a better idea of what the photos are actually depicting.  I would recommend "consult[ing] a structural engineer" as you skillfully predicted.  ; )

In the interest of developing your structural knowledge and getting your PE, I suggest finding work with a small structural firm that does work in single- and/or multi-family residential. Your knowledge of structural evaluation and remediation (as well as new construction) will be unparalleled by your non-engineer investor colleagues with just a few years on the job.  This is one of the many areas that I work in.  When banks, realtors, and insurance companies need homes or foundations inspected/evaluated in my area (Billings, Montana, the Dakotas, and Wyoming; a sizable area, indeed), they come to me.

@Kevin Martin is a little further down the path of the developer on which I am just now embarking, so I know he can give you some terrific pointers.  I also agree with him that engineering earns a comfortable living, but it's not where the real money is.

Hi, Kyle.  I work at a structural engineering firm here in Billings, BCE Structural.  We may have occasion to speak on a steel project at some time.