All Forum Posts by: Wayne V.

Meant to say three states. Sorry for the typo.

I'm a Home Depot Pro contractor and use the Pro Rewards program which allows job tracking as has been mentioned previously.  I also use the HD Project Loan program,  which at 8% is much less costly than hard money. The loan runs for six months and you only pay interest on what you use as it should be. I pay this one of when I flip the project and start a new one for the next project which also helps keep the individual job tracking much simpler. I have projects in the states and use HD for all of them. Depending on which state,  I also use HD contractors to do some of the work and use the project loan to pay for it. I just had hardwood floors sanded and refinished in a Connecticut house that we're flipping and the contractor did a great job for a very reasonable price. Same with the carpeting. 

Robert is spot on. I would have a couple of local masonry contractors give me a quote for the repair  work. There are a number of variables aside from labor. The local cost of fill and concrete being two of them. How was the floor finished? Wood, tile, or, carpet,  will also contribute to the cost. 

Orange Big Box is a mainstay for me because I know their inventory and their higher end stuff is okay for most rehabs. You can shop the supply houses but you may not get the cabinet,  the sink and the faucets from the same source and they are usually more expensive. Depending on the market you're in it should be adequate. 

Hi Marilyn,

This puts you in the position of being the GC as well as the original investor. Be sure to take a profit margin on the rehab work as well as the initial flip. Keep in mind that if the buyer wants decision making control that your project could be delayed and over budget so make sure there is language in your contract that transfers that liability to the buyer. Generally I use "allowances" for both time and cost when developing budgets. If the actual time or cost exceeds the allowance then the client pays the difference. On the upside, you should be able to do the rehab with the buyer's money.

Best,

Wayne

Hi Justin,

A foundation repair or building a new one is a significant undertaking. Variables include access for excavation, disposal of the old rubble, the new foundation construction itself and then backfill and landscaping. The best approach is to find a foundation contractor (get quotes from three and check references) and then run your numbers back from the ARV to see if it's worth the time and effort. In my book a defective foundation is a major bargaining chip in negotiating a purchase price so depending what you're able to buy it for, it still could be a profitable investment.

I think the fact that it's on a slab is a deal breaker if you want to relocate plumbing any more than a couple of feet. Removing walls to combine rooms or change the layout in general however shouldn't be much of a problem. Is there any way to creatively modify the space keeping the existing mechanical layout?

Hi Tom,

In answer to your first question, it depends a great deal on the level of rehab that you're doing. In a clean, paint, and freshen up, the cost will be predominantly labor. This will be true also in the case of a rehab with an entry level kitchen and bath rehab. Component cost will be low but it still takes the same amount of time for the installation. Skilled trades will be your highest labor cost so plumbing and electrical changes will impact your budget the most. Try to keep those changes to a minimum as in the case of moving fixtures in a kitchen or bath or in moving an entire bathroom.

As for flooring, tile is my preference for durability and resale value. Really good vinyl or Marmoleum is expensive and when all is said and done, it looks like a vinyl floor. You can get nice looking tile for a very reasonable price if you shop around finding tile that is left over from a larger lot, or is a clearance item. 

These are just my opinions. I'm sure other BP members may have other thoughts.

Hi Bobby,

Obviously you want to do the right thing in bringing a quality product to market. Your reputation will depend on that. Personally, although it may be legal to have multiple related businesses, I would find a reputable independent inspector who has references that can be verified. I would also check the inspection reports against local building codes for specific requirements which ultimately are your bottom line in what must be done. I would definitely address issues such as termites, footing problems, and insulation as needed, but i would get estimates on each item from three reputable contractor / specialists, and again, check their references. It's a lot of work on your part, but due diligence here could greatly affect your margin. The bottom line is to do the right thing, but to do it wisely.

Hi Tamela,

Another path that a lot of investors in your situation take is to buy a duplex, rent one unit to cover the ownership, and live in the other half. That will get you a nearly free place to live and if you fix the rental side up before renting it, you would gain a little rehab experience and slightly more rental income. Find another slightly nicer one, rehab and move in to one of the units there. Rehab the others and now you have three rental incomes, a place to live, and you've rehabbed four places. Voila !!! A free place to live, rental income, and experience in rehabbing. Using the equity that you've built, the next move would be to find a small and simple single family (SFR) to rehab and flip. From here on, the world is your oyster : - )

Happy Investing !!