Many investor overlook the electrical service. The idea of a 100 Ampere service is that the total of all circuits does not exceed 100A. If you have central air you will need 100A service.
Two problems may exists. One is the size of the wire coming from the pole to the house. In the old 60A service senarios it is #6 wire and will need to be changed out by the power company. The good thing is that they don’t charge for that. The bad thing is the breaker box will have to match and they may check to see if the replacement was permited. Things need to be done to code and 100A may not be to code.
The other problem is when a house is red tagged by code compliance. The inside wiring has to be updated then. That means grounded outlets and outlets on each wall to code. That is when you have to start opening the wall and running new cable. A new electric service is in the $1000 range. Add a couple more if you have to rewire everything. Then add the work to put sheetrock back.
Gotta Love Those Bandit Signs (long) - Posted by CurtNY
Posted by CurtNY on December 26, 2000 at 14:17:47:
Well about three weeks ago I posted that I finally got around to putting up those bandit signs around town. Here’s an update. NOTHING for weeks! I drove by my signs one day and asked my wife for her feed back (she’s totally behind me but always gives it to me straight), her response… “I would love to if I could read it!” BINGO, I made a great little bandit sign on 8 1/2 X 11 bright yellow paper. The problem was it had to much information and the text wasn’t big enough to read at a stop sign let alone driving by it. Back to the drawing boards, simplified the format, changed it to landscape vs portrait and boom three calls right off the bat! Two possible lease options and a handyman special. Here’s some details on the handyman: SFR 3/1 (has building permit issue-previous owner took out a building permit and never got a C/O for an addition. Took a look at it this weekend, looks like the entire addition needs to come down. 2x4 rafters holding up the roof - have to check with the building dept to verify everything this week, also has a huge garage-heated with 100 amp electric-which is more than the house has- this too has an outstanding permit-electric) Needs carpet, paint, new bathroom and new sheetrock upstairs, update electric from 60 amp to 100 amp, (in addition to the addition & garage). The numbers look like this:
ARMV=$85,000
asking price=$65,000 (lucky if I give him $30,000)
Taxes=$2350 (for 1999/2000)
Repairs= approx $27,000-30,000 (might be less depending on the cost of the addition)
Owner has been offered early retirement and needs to sell by march. He’s moving to Hawaii (has family there and he has a nice little Hut) needs $20,000 in order to go, and is willing to hold the rest. Originally I was going to offer a few thousand up front and have him hold the rest and sell with owner financing but now I know he needs the $20,000 thats out. Probably going to have to flip it. Let me know what you all think.
Re: Gotta Love Those Bandit Signs (long) - Posted by Kevin Subbert
Posted by Kevin Subbert on December 27, 2000 at 21:56:20:
I have a question. If the electric needs to be updated from 60 to 100 amp, then all the wires will need to be replaced, right? Im not a wire guy so I dont know. But if so then how do they replace all the wire? Doesn’t ALL the sheetrock have to come out or can they run the wires like they would if they were installing a new phone jack? Just wondering for future reference.
Also, maybe I didnt read this correctly but is the addition holding up the roof? The addition that you plan on removing? What will hold the roof up? Why not finish the addition and make it the new bathroom that you are planning to put in? How big is the addition anyway? Does it have foundation?
I guess it really doesnt matter since you plan to flip it. I dont have enough experience so it would be hard for me to estimate that much repair.