2 bedroom apartment cost $126000 needs $10000 spent on it rents for $575 /month What information is missing to value this as a deal[ Edited by pmcpmc on Date 09/21/2004 ]
I think spending $136,000 on a house to get $575 for rent is a very bad idea. Have you considered mortgage pymts, Taxes, Ins, Vacancy%, Reserves in case of repairs in th near future. I don't think $575 can cover all these expenses unless you are planning on having negative cash flow, which is a big no-no. my .02 cents
[addsig]
We bid line item, however as of late we do lump sum until we have the bid.
OTherwise the owner takes my drawings and line item costs and goes to the hardware store and does it themself or hires a handyman.
My time is valuable, if I am only looking at a small job, 5K or less I am not going to spend an inordinate amount of time line iteming everything. I frequently use a per foot cost. i.e. drywall over 1500sf of wall space .90 a sf. I am not going to spoecify how much for tape, screws, mud, etc.
[addsig]
The contractors and subs have learned that most people are just using them to play low ball with another contractor or worse, use his estimate as a material list.
Except repeat customers and a few selected individuals, I do not give out estimates or bid on jobs. Most of the time it is a waste of time.
Your last statement said it all......you are using their numbers to bid out the work.
This is one of the quickest ways as an REI to get a bad reputation.....and rightfully so.
Estimating rehabs can be very challenging even for the pros. There are so many unknowns that can and often crop up and time and material does not always allow enough for such.
I would suggest you find a contractor or a few subs that you feel comfortable working with and develop a mutual working trust with them........contractor / subs will make or break your business......find ones that are good.....which doesnt always mean the cheapest.
I recently wrote an article when to hire such or do it yourself.....it would be worth reading.
I think spending $136,000 on a house to get $575 for rent is a very bad idea. Have you considered mortgage pymts, Taxes, Ins, Vacancy%, Reserves in case of repairs in th near future. I don't think $575 can cover all these expenses unless you are planning on having negative cash flow, which is a big no-no. my .02 cents
[addsig]
Patrece is right! Way too expensive!!!!
Thanks to all
We bid line item, however as of late we do lump sum until we have the bid.
OTherwise the owner takes my drawings and line item costs and goes to the hardware store and does it themself or hires a handyman.
My time is valuable, if I am only looking at a small job, 5K or less I am not going to spend an inordinate amount of time line iteming everything. I frequently use a per foot cost. i.e. drywall over 1500sf of wall space .90 a sf. I am not going to spoecify how much for tape, screws, mud, etc.
[addsig]
I agree with Stockpro.
The contractors and subs have learned that most people are just using them to play low ball with another contractor or worse, use his estimate as a material list.
Except repeat customers and a few selected individuals, I do not give out estimates or bid on jobs. Most of the time it is a waste of time.
Your last statement said it all......you are using their numbers to bid out the work.
This is one of the quickest ways as an REI to get a bad reputation.....and rightfully so.
Estimating rehabs can be very challenging even for the pros. There are so many unknowns that can and often crop up and time and material does not always allow enough for such.
I would suggest you find a contractor or a few subs that you feel comfortable working with and develop a mutual working trust with them........contractor / subs will make or break your business......find ones that are good.....which doesnt always mean the cheapest.
I recently wrote an article when to hire such or do it yourself.....it would be worth reading.
NC_Yank