Angie the Angel

One of the most difficult first steps I’ve encounter as a novice rehabber has been finding good contractors. I’ve had over 5 plumbers and 6 electricians over and all have offered different advice, pricing, and interpretations of City code. I cannot speak highly enough of Angie’s List service for finding contractors. It has been the best $7 I’ve spent thus far, and every contractor from this site has been very professional to work with. For those unfamiliar the site does the leg work of checking contractors for insurance, licenses, and even offers links to Better Business Bureau records to ensure they are a legitimate contractor. Users offer tons of feedback on the results they received, including prices, and the contractors are scored A to F in 5 areas. Poor work gets them put into a penalty box where they are shown in poor standing until issues are resolved. An amazing resource that keeps contractors accountable for their work and is available for areas all over the country! Check it out below.

www.angieslist.com


FYI- servicemagic.com also offers a similar service for free, however I’ve found the user feedback and larger database of contractors worth the few bucks. I’ve worked with two contractors thus far from servicemagic that have not met expectations. They will likely earn their very own writeup on this blog discussing their performance (or lack thereof).

Bids... Bids... Bids...

The last few weeks have been moving extremely quickly. Contractor bids have been flowing in and it’s almost time to get rehabbing underway. I fully intend to discuss in a future post information about how I got financing and more of the number crunching that went into my purchase, but for today a brief update on construction will have to suffice.

During my inspection process with the house it was noted that there had been some water damage inside the property, both from an old leaky roof and also busted supply pipes. The property has 3 water feeds in the basement, and was not properly winterized. The old galvanized pipes had burst and a half @ssed attempt was made by the bank to remedy the problem.

After opening the walls to assess the situation it was determined that the best move would be to replace all supply plumbing with fresh copper. I’m fortunate this is a relatively easy project, as in many Chicago two flats the kitchen and bath share a common wall leading down to the basement. Opening two walls is all that is needed to replace 95% of the plumbing supply lines, and the remaining cast iron waste lines I was told will likely last beyond my existence.

Below are some pictures of the common walls being opened up. Special thanks to the GF and my roommate for offering some assistance in destroying my first house. ;)

"Stripped Down"

It started 4 years ago with a couple investment books purchased from Half.com. After avoiding reading as much as possible during college, I decided testing my literacy might be a good idea. I quickly learned that my financial foresight needed to change from my college years. Pay checks were no longer to be exhausted buying cases of Natty Light on Tuesday nights; my retirement and financial freedom hinged on smart moves during my younger years.

After running the Morgan Stanley 401K investment tool at work it barked back and told me I had a 25% chance of retiring by 60. The odds seem to imply that betting everything on “Black” in Vegas when I hit 40 might be a better option. Even with contributing over the company match (before my company cut our matching program) the outcome seemed unacceptable and hopeless. The stage had been set to find a way to hedge against the standard “lemming” approach to saving for retirement. Pensions and Social Security seem to be things of the past and only wishful thinking for my generation. (Generation Y) The monotony of reading seemed to allude that real estate was a possibility worth exploring.

So why are you here? You may have stumbled upon my site though Google, or possibly some random facebook stalking while at work, or maybe you yourself are considering the jump into investment real-estate and are trying to learn the ropes. Whatever your reasoning may be I hope you find some beneficial information that helps you in your quest for financial freedom as well. If nothing else the sadistic vistors will enjoy watching from the sidelines as I struggle and share the story of my own quest.

This blog will feature a fully exposed “stripped down” view on my first attempt at preparing and running an investment rental property. The good, the bad, the ugly and all the financial numbers surrounding this new pet project. While other rehab blogs exist, few offer insight to the actual costs associated to these kinds of projects as well as the process of becoming a landlord. Over 2 years of research went into making my first purchase and I’m certain the learning is just beginning. As a previous spectator this site will offer information I wish I had two years ago. Enjoy and feel free to offer comments, opinions, or recommendations for topics of interest.