We have done alot of deals the way Joel outlines, however we see a difference in what we do- light rehab (we refer to it as CAPX, which is the items HUD will require us to upgrade and repair before we can stablize and refinance the asset)- and Rehab is what I think Joel is referring to- total rehab from the studs up (which we would only do in a tax credit asset or 501(3)C bond deal for a nonprofit asset -it is very costly & time consuming).We have found that when you start rehabbing multifamily one thing is always true- always expect to spend more than you budget.

Joel is correct, watch your sources, but you may be able to run to a good market too, higher costs, some items (meat) may not be consistant, which is the key, customers need to know what to expect every time, make changes slowly too.

My suggestion is, obviously, in the first post of this thread.It should cover all but the first item in your above list.Maybe I am missing something, but why do you add 'hospital'?

When this loan was originally offered in 2005, I know we would not have had all those items they are asking for because we lost everything in the disaster.

Sorry, missed that item.

I was just wondering about when negative items fall off someones credit report?

Bryan Hancock - Just click on the PROFILE menu item on the left of the dashboard and then click on "Profile Stats."

i hired a handyman from craigslist 3 weeks ago to repair a few items in 2 rentals. i paid him $200 before i inspected the work. later, i found out that he had completed only half of the items. i never do that, but he was lucky that we just had a baby the day before and the house was occupied, so i could not inspect it. note to self - the contractor can wait to get paid until the next morning. and $200 is drop in the bucket.

Well I did a little staging (bought out the red line items at Garden Ridge pottery) and went ahead and dropped the price to $850 at the one week mark and now I have so many showings I can't keep up.  

When you turn-over a {long term} unit you must: 1) update the unit or, as a minimum, affect repairs and replacement of worn items and paint; 2) Clean the unit (both before and after repairs/renovation); 3) Advertise and show the unit; While you are incurring all of the above expenses, you will also be loosing 1-2 months revenue.