First Rental. Do’s and Don’ts?

[Brian King]

So I just signed the contract on my first rental units.  It is a 4 unit, 2 - bedroom 1 bath apartment building and a single family 2 - bedroom 1- bath on the same lot. 

It is currently lower income.  It has 2 long term hud renters and 3 cash renters. 

Current rental income is $2400 at full occupancy.  I picked this up for $75,000. 

One of the units in the apartment building is becoming vacant this week, this is going to give me the opportunity to remodel. It is going to be a complete gut, rewire, plumb, etc.  

What would the experts do?  Steel bath tub, cheap or more expensive kitchen cabinets, LVL or some other type of flooring, and anything I can do that will help me out in the future?  my plan is to upgrade all the units as the come vacant, get rid of hud, and get the rental rates up to $600-$700.