Interstate Renovation

I've done it this way before (once) too. Not easy getting the time off work though.
Mostly, I've just done maintenance. I had 2 sets of tenants who were happy enough to live in a slightly run-down tired old property. That was the good old days. The new tenant wants to do everything up. He's costing me quite a bit but the money is spent on stuff that really needs doing and I get a lot of positive feedback about him. In an ideal world, I will get into the property myself for a few months at least and get it up to a good standard. In the meantime, I try to get nice things for the property every so often.
E.g. last year I had a gate put up across the driveway - made a big difference. This year the old carport is being taken down (on it's last legs) and a new one being put up. I had the interior painted about 5 years ago and the exterior was painted this year. I'd rather do the painting myself but just don't have the time right now.
When it comes to kitchen, bathroom etc., I will be there. I wouldn't leave it to property managers to take responsibility for anything, really.

 

Oui !

We buy in joint names - so that at least halves the problem.

But it also fits in the "nice problem to have" category.

The payback for the renovating effort is not the same at the cheaper end.

We're old and only have a few renos left in us - so they have to count big time.
We also believe the growth in the inner city areas will exceed the outer suburbs -
but that is just an opinion (also we did get one in North St Marys).

Structure wise we could have done things a bit better - but still pleased with the results.

With your 35 properties the approach would be very different - and obviously very successful.
I just don't know that we could manage that many (currently have 5 IPs - but 11 sets of tennants).

on ne marie pas une poule avec un canard ?

 

Doing one now.

Flew up once to work with the PM on work that needed to be done.

She organised all the quotes - I said yay or nay.

Cost of works around the $7,000 mark - mainly cosmetic internals like paint, carpet, blinds and adding a kitchenette.

I will go up every 2 or so weeks to check on progress, in addition daily chats and emails/photos with the PM.

Key is to get a good PM to organise things for you. Have done previous renovations without a PM, still doable but just requires more work on your behalf.

Good luck!
Michael

 

Ah yes.....and yes a nice problem to have...trouble is if I sell 2 with say 200k CG...Mr Taxman taketh...I will pay 50%!

I am presuming a couple of your places are units blocks?

Heading up to Brissie tomorrow.....

And of course you can marry a chicken and duck...I do it all the time with genetic splicing.

Agree about renos at cheaper end...just bought a cheap unit in Brissie....but plan only to spend 10k in renos.

 

Good luck for Brissie - sounds like you need to take a winter coat.

Only just had a main course in Wynnum - so still digesting - you seem to have the Yum Cha approach

Don't think I quite got the right French phrasing there !

 

More like kid in candy store some pretty deals outside of Logan just took one off the market waiting for owner to sign. Looking to sign another deal tomorrow. Worried the banks are going to freak out!

 

I've done a Brissie reno remotely. I flew up to the property, met 12 tradies over 2 days - painters, kitchen, blinds, builders. Told them what work was required and they emailed me the quotes. The selling agent had a few sets of keys for the trades' access and each would send me pictures once their job was done. The kitchen guy thought it best to not add a section of benchtop I requested as "it didn't look great" but didn't discuss it with me. I only noticed it missing in the pics. Same with the door handles, being round housing-commission type issue rather than modern square set. "I think these ones look better". I'm sure he thought he could get away with it, me being in Sydney.

If you give very detailed descriptions of what is required and make sure the trades supply the finished pics before you pay them, most will comply.

 

We are doing one in a regional location starting tomorrow. 5 hours from Stdney. I've got the trailer loaded with wardrobes, new kitchen, curtains, rods and lots of tools. I've taken the week off as has my partner, brother and dad. Got the air bed, slow cooker and microwave, we'll be camping in it for the week. Dad visited the pub and got a couple of retired blokes lined up to install the kitchen and paint the house from top to bottom. We have to jack and pack and do the laundry and tidy up the bathroom in 8 days. Fingers crossed it goes to plan

 

Our IP is in Kalg

I drove over to Kalgoorlie a couple of years ago and did a reno on our 2x1 unit there.

Loaded up the old ute with all my tools and stuff and away we go.

It was less than half the cost of the quote to do by locals, and I achieved probably at least 50% more stuff done than they had quoted to do.

And it was a really terrific experience into the bargain.

Mine was a little bit involved repair-wise, but mostly cosmetic - the carpet and blinds were installed by the companies who sold them to me, the sparky fixed the hot water service. The rest - was all me.

Still took a touch over 2 weeks of 15 hour days to get it done. 3 weeks all up including travel time.

An old dump is a different animal - possibly a LOT of work, and a lot of time if you are doing it.

 

Hey bayview. I've done a few renos before. Mainly cosmetic.. But I really like doing this. Feels like I'm accomplishing something . beats my desk job . I don't think I could just buy a boring IP with nothing to do. I want something I can add value to. For me, this is where all the fun is. Finding the IP that needs work and then adding my reno touch to it. Maybe I'm just strange but I luv this part if it the most.

 

Yep, in hindsight I have realised that I'm most happy during these reno projects.

Just gotta get rid of the workshop and get back to it.

 

@teg499
I'm like you with the hands on, even self manage.
Rather than thinking out of state why not regional from Syd so you can do renos, maint between tenants etc yourself?
Mid Nth or Sth coast, even out mid west, Bathurst (tax deduction for the 1000), Orange, Wagga, Dubbo areas etc

 

yeh, still deciding on which area for next IP. keeping it in NSW would be ideal.. but all the big guns on here seem to keep talking about brissy and adelaide!!

...in the process of doing some refinancing at the moment. once done, will need to seriously start researching areas for next IP. will definitely look at areas closer to home as part of the search .

 

They reckon whales beach themselves because they follow the leader/s
Make a plan that suits your own desires/requirements, do your own research for what suits

 

Sorry for bringing up an old thread - I just thought I'll do this instead of posting a new one.
Just have a quick question in regards to asking your PM to help project manage or looking at the works, you guys then paid your PM to do this? Did you suggest the ideas and they gave you a price for them to help you out?

Cheers,
Fitz

 

My PM's dont charge extra - it's part of their management fee.

I asked them to obtain 3 quotes for work to be carried out. They email me the quotes and I instruct them on which quote to run with. They then contact the contractor, organise access, check the completed work off and email me photo's/invoices for payment.

I hope this helps @Fitzy1903

 

Can anyone advise what a PM fees/percentage would be on average small reno?

 

Very helpful - thanks @Rixter.

 

Hi Fitzy1903,

My PM doesn't charge for extra, all part of the service.

Cheers,
Michael

 

Irrespective of whether it is a local reno or an interstate reno, one thing that is a very good idea is to have several sets of keys. Some tradies need to come and go a fair bit and don't have the time to return the keys every 5 seconds. An example might be a plasterer who does a little bit of work, then heads off to do some work at another site while his work at your place dries. Then he comes back later that day or the next day. So it is handy to be able to have a few sets out there in circulation and one that remains with the PM at all times.

There are renos and there are renos. Coordinating a full-scale reno from afar would be tricky. However a reno involving, for instance, new carpet and new window coverings, is easy to organise from afar, and the PM could "review" the work for you quickly and easily and confirm that the job has been done to a satisfactory standard. The carpet is either in or it isn't. The window coverings are either installed or they are not. Painting is a tricky one - people have different perspectives on what is considered to be a "good" paintjob. Cabinetry is another one that can be murky. One person might be happy with a 2mm gap between cabinets and wall and another would be furious. You would need to determine your expectations, and chat to your PM or someone local about how much support they can offer you. A building inspector might be happy to offer a service where they pop in a couple of times and check on things for you in exchange for a fee.