End result should appraise out in the $210k - $225k range.
Pluses:
We (my wife and I) decided to make this our home (decision was made before rehab even started)
I have learned so much, from dealing with contractors and finding deals to how to use a power tool
I have collected a bunch of new tools (I didn’t even own a power tool before buying this house)
I get to build my first home with my own 2 hands
Negatives:
I am not cutout for manual labor
It sucks working in the FL heat
My hands are jacked up with cuts, scrapes, etc.
I'm a contarctor and yes I understand that dealing with a bad contractor can be frustrating. However, as a qualified professional I have been doing more and more rehabs. I know one thing for sure and that is I am a key player in the investor's I work with team. Of all the other people we deal with as investors no one can screw up a deal and cost you more money and frustration than a bad contractor.
I make really good money doing what I do I wish I could do strictly rehabs but the investors I work with have not gotten up to speed. I would even travel for work with the right person, eventually I will find an investor to settle in with but for now I keep working to get right to finance my own deals.
The number one thing I would reccomend to all the investors that read this is, if the price is cheap you'll most likely get what you pay for construction work like properties has a fair market value and if you get a deal there is a reason, contractors do not practice full disclosure.
Oh, I have already dealt with a crappy contractor! A 4 week job turned into a 3 1/2 month job. I got married back in July and was out of town a month, he did not show up the entire time I was gone!! It took my attorney sending him a letter to finally get him to finish.
I have read it many times, if you are working on a project, make sure you are at the project. In my case I did not have much of a choice. In the end I am glad I went through the experience, sure did teach me quite a bit.
Once this house is completed, I hope to pull out all of my money and do another one. That is the plan as of now.
if rehabbing is a path that you would like to pursue… please take my advice, contract most/all of the work out. It will be cheaper and faster in the long run. remember to stick with subs and not a general contractor…
I agree with the suggestion to hire contractors to do most of the work. You could get to your exit (rent or sell) faster.
However I am doing my first rehab on my first rental property that I closed 2 weeks ago. My original estimate was to have all the rehab done in 4 weeks. It is taking me longer than I was expecting and I will probably be done in 6 weeks.
My wife and I are doing all the work ourselves. We are really enjoying the opportunity. The first time you fix a drywall hole may take you some time. But after you do it once you will see that there is not mistery to it and you can do it much quicker the next time.
I am lucky that my rehab is not complex - fix some drywall in the garage and kitchen, remove popcorn ceiling in master bedroom and 1 bedroom, texturize ceiling where I removed the popcorn ceiling, re-wire some of the light outlets, paint, replace tiles in kitchen, replace carpets in 3 bedrooms and great room, landscaping.
I am loving each minute. Last night I discovered a leak in the ceiling when I turned on the shower register in the bathroom. I am going over there at lunch time to check it out and see if this is something I can fix myself or if I will need to hire someone to do it…
On my next one I will go with a contractor to do all of it. I will admit I got in over my head on this house, however I have navigated my way through it thus far. Instead of buying a small fixer, I bought a complete gut job. We took the house down to studs (floor, ceiling, and walls). It needed a new roof, complete re-wire, complete re-pipe of the plumbing, and a complete new A/C unit and duct work. We have reconfigured the layout completely, add a huge master bath and walk-in closet. Its been fun and frustrating all at the same time.
If I could figure out how to post pictures I would. Anyone know how?
You can set up an account on a site like photobucket and then post the link to the picture in your message. Your pictures will show up in your post then.