First deal closed...now to start renting

[Justin Dziedzic]

Hi all, 

First, I want to thank this community and everything y'all have done for folks such as myself who have just closed on their first deal. I purchased from a family member who will be moving out by June. The issue is, I have a bit of rehab to do to get it ready, as she was a heavy smoker. I purchased an ozone machine, will be redoing the carpet, painting with Kilz primer, etc. Anything else anyone can think of from that perspective to get rid of smoke odor? 

My next question is in terms of liability - specific to PA. The home is located in a flood plain, albeit the very, tippy top edge of it, and has never flooded in its lifetime, however it still required flood insurance. I was able to get private insurance at only $700 per year so even with that expense the property will cash flow nicely. My question is if anyone knows that this has to be disclosed to the renter? Are they required to carry their own renter/flood insurance in PA? I couldn't find this info. 

[Ray Hage]

Quote from @Justin Dziedzic:

Hi all, 

First, I want to thank this community and everything y'all have done for folks such as myself who have just closed on their first deal. I purchased from a family member who will be moving out by June. The issue is, I have a bit of rehab to do to get it ready, as she was a heavy smoker. I purchased an ozone machine, will be redoing the carpet, painting with Kilz primer, etc. Anything else anyone can think of from that perspective to get rid of smoke odor? 

My next question is in terms of liability - specific to PA. The home is located in a flood plain, albeit the very, tippy top edge of it, and has never flooded in its lifetime, however it still required flood insurance. I was able to get private insurance at only $700 per year so even with that expense the property will cash flow nicely. My question is if anyone knows that this has to be disclosed to the renter? Are they required to carry their own renter/flood insurance in PA? I couldn't find this info. 

@Justin Dziedzic congrats on your first property! My advice on the carpet is get rid of it! It is generally not worth saving or having in a rental. Tenants generally don't take care of it that well. Depending on the property itself and location, you may want to go with higher end vinyl or laminate. It is not too expensive and is much easier to keep clean. 

Regarding the renter, they need to carry their own renter's insurance that also covers flooding as a potential hazard. You should require this and outline it specifically in your lease. I am not familiar with PA laws if you have to disclose that you're in a flood zone so hopefully someone on the forum can help with that.