All Forum Posts by: Zhijie Wang

 Well, 450k is not my budget limit and I have no confidence in that number either. Hence why I prefer more GC comes in and take a look and possible, submit a bid. My own walk-away threshold would be 700k for rehab.

agent said the rent could be higher than 2K. Median rent in the area is 2300-2500. I am comfortable as long as 450k finish the job with a standard look and net me 1800 a unit, then I don't lose money. I am open to better finish and higher ROI.

Appreciate all the info and help.

Not my first time in the rodeo. Did a 800sqft renovation is SF Bay Area myself with subs, 2 car garage with attached structure to ADU. I own multiple properties in SF Area. It had only roofs and exterior walls. Managed to do it cheaply with $115 / sqft with some of my own sweat and muscle. So I get your comment about $65/sqft and "high end". Hence why I need more options and more contractors / eyes on the project.

maybe my “down to stud” comment is not accurate. 3 rooms with drywalls gutted completely. All higher levels have top sections to the drywall remain.

as I said, “high end” is a term used by agent, and the each unit has features such as in-unit laundry, wall to wall closet. I might be completely off.

Another note: my original budget is 600k, estimator came back and said 70-80k per unit is enough.

 From the past record I can tell, 5 of the 6 units are around 1400 sqft each. No need for exterior, other than door replacements and some minor sanding with pain touch ups. Plumbing in place. new electrical. Some kitchen and bathroom are still in place.

Some drywall and flooring does remain in place, but many has been striped or demo to reveal studs.

in regard to cost per unit, estimator gave the price of 70-80k per unit. In terms of the “high end”, I mean the sky is the limit and different people use the term refer to different range I guess. But agent used the word after finding multiple 7ft spa size shower tubs and full marble counter tops in place.

Hi, 

We are entering a binding offer today. The renovation scope is about 6000 to 8000 sqft, high end apartments, 6 units. Currently down to studs and 450k to 500k budget. My agent referred us to one contractor, Blue Jay Renovation. Nothing against them. I like options and negotiation power. Anyone has experience working with a contractor that can handle this size of a job?

Thanks in advance.

Hi all,

First time to the forum, first post, 4th property. Basic info about myself: owned properties, did major renovations, including foundation underpin. Renovated with personal cash most of the time. Considered high earners -- affects my capability to foot the bill of 500k HELOC.

Just straight disclaimer, I am an out of state investor (for GA). And I will be relying on contractors and PM to manage. Can't compete on cost efficiency with local guys. The property is down to the studs, we will be closing with 850k, offer binding today. 450k projected rehab cost. Exit strategy is refinance 800k, the projected rent roll is 10k to 15k. 

Talked with many hard money lenders and got several soft quotes.  Maybe because I did all my rehab and reno in the past with cash, but the terms of hard money is high 10.9 - 12.5% with 2-2.5% origination fee, and a long list of draw fee, inspection fee, doc fee etc.

Right now i have 450k cash in the bank, 250k HELOC from main property, another 200k HELOC can be opened on my fully owned GA SFH. I have an investment partner in this deal with me, 300k. HELOC cost 2.5% origination/draw fee and rate is 10%. I won't be dealing with any other lender fees and go at my own pace. And HELOCs are re-usable, so i can save that 2.5% origination fee for multiple use in the next 5 years.

Alternatively I could go learn the typical way and deal with HML, build a network. And learn how to stomach the fees. Does the HML route gets easier when you do it a couple times? We do intend to scale out and do more in the future. Is this the best route?

3rd option is start looking for more LP/ private funds from friends. Using my personal name as guarantee, I could probably go lower on the rate, 8-9%. If they see the return, they might join as partner in the future?

I would like to listen to the forum for any advise on different pros and cons of different approach.

PS. if anyone has a good contractor recommendation for this size of project (8000+ sq ft rehab), please let me know. Atlanta area. My agent has one recommended and I am working with the contractor. But I like options (implies negotiating power).