Questions after acquiring first property

[Steven Catudal]

I just bought my first investment property (duplex - one rented, one free) and had a few questions. Please keep in mind that I plan to rent to college students and the free unit is about 2,000 sqft:

- I went to transfer utilities and the past owners have a balance. Therefore, I need to send PSEG my deed for them to solve the issue. Has anyone experienced a similar issue? How long does it take for the deed to be ready after close?

- I have to do some renovations for it to be rentable. This includes, repainting and patching some holes. I was quoted between $5-10k. How hard is it to do this myself (aka me + a few friends for a couple nights)? The materials themselves seem quite cheap. Is there a big quality difference between using a spray gun and traditional rollers?

- Is it worth hiring someone to put in recessed lighting or should I stick with current electrical and just put in LED bulbs? 

- I am planning to have a contractor tear out the current carpet and install new vinyl. Would tearing out the carpet myself save on the cost of this? I was quoted $4k for removal and installation of new vinyl (without materials).

- What is the best way to price the rental? Is it better to list it at the highest that I think I could get or should I price more conservatively to create competition and then try to push the price up? Is it better to wait for all renovations before listing with pictures or should I post listing now without pictures saying that renovations are under way?

- How do I go about managing existing tenants and setting expectations? What is the best form of communication?

- Any other things to keep in mind?

[David Ramirez]

Hey @Steven Catudal, 

Congrats on buying your first investment property!

1) This is not uncommon. It depends on the jurisdiction you are in and how efficient they are. I've had properties where the deed transfer takes a few days to be recorded and others where it has taken weeks.

2) It isn't hard at all. You could easily do it yourself if it is worth trading your time for it. Spray is faster but you could easily overspray if you haven't done it before. It won't be of much difference it would only take you more time with a roller. 

3) I would leave it as is

4) How big is the space? Labor to install should be around $400 per bedroom. 

5) If you are renting to college students, you might be better off waiting for pics since you will probably get more demand toward the end of spring. I wouldn't aim for the highest; I would go for an average of rent prices in the area. If you are going to post it before doing the work, make sure you add the date when it would be available to move.

6) I would make sure they understand the policies and rules in the lease agreement and expectations regarding rent, maintenance, and behavior. I would do a quarterly inspection since they are college students.