What construction materials are you using for buy & hold rentals?

[Scott Savard]

Hi BP Community,

I’m in the process of two rehabs. The first is a two family complete gut and replace and the second is a single family home the requires a less extensive rehab but still some major items. I’m curious to hear what some of your favorite “go-to” material manufactures and models are for buy and hold rental properties.

Specifically

Windows and doors

Kitchen Cabinets

Appliances

Flooring

Ultimately I’d like to standardize my bill of materials for all of my projects, where possible. I’m looking for materials that will show nice and last but obviously not break the rehab budget.

Anything helps.

Thanks

Scott

[Marcus Auerbach]

It really depends on tht type of property! In most cities the rental market will follow a standard distribution and look like a bell curve - in Milwaukee the median is at about $1000-1200. Our average rent is about $1500 for a single family. We have a significant segment up to $2000 and then there is the luxury and ultra luxury segment - where I live in Mequon you can rent a townhouse for $4,400...

Keep in mind that your attitude to your property will be reflected by the tenant ("whatever is cheap, it's just a rental" mindset). And the property will define the tenant. We actually put effort into the interior design and - within reason - open up the floor plan, update kitchens and bathrooms and spend money on landscaping.

The goal is always a combination of looks, durability and cost effectiveness. Landscaping is a good example - we eliminate flower beds, anything that needs regual maintenance, often remove some of the trees (think leaves), favor evergreens over seasonal plants, boxwoods and globular arbs are our favorite for along the front and mulch beds get replaced by stone. One of the best investments is a bag of weed and feed for a crappy front lawn! It needs to look good and require only lawn mowing. 

Cheap materials will cost you twice. Buying low end LVP is just as bad of an idea as buying cheap roof shingles. Everything we do, we want to do only once. A cheap roof will last only 15 to 20 years. A quality roof will last 30 years. The labor is the same, the material is maybe 20% more. One of my friends installs steel roofs on his properties in northern Wisconsin - lasts forever and eliminates issues with ice daming.

Quality LVP (from a flooring store) a buck or two more looks and most importantly sounds better when you walk on it. It gives a sense of quality, which plays into the overall feel. I can't tell you that it lasts longer (it might), but in many cases it will save you time on labor, because it installs faster.

One of my first properties ten years ago my contractor installed cheap shut off valves; I remember he pointed out the savings, becaue we had a total of 6 and the steel valves were like $10 extra each over the plastic. I saved you some money he said! 4 years later the original tenant moved out, reported an issue with the dishwasher. So I go there and turn the water off under the sink - and break the cheap plastic valve with my left hand. Water starts gushing out, I run downstairs to turn off the main: the handle is broken and has sharp edges and it wont move. Takes me a few minutes to get my tool bag from the car.. Meanwhile the all new kitchen turned into a giant puddle. The water made it under the floor and caused the subfloor to swell and buckle - ultimatley we had a several thousand dollar repair. Thanks to the cheap plastic shut off valves from Menards. 

Needless to say that going forward our plumbing supplies are always top quality from a plumbing supply house - brass and steel valves, braided steel lines for the fridge instead of plastic, Pex-A instead of B or C..

We don't always choose the most expensive materials - here is where we save:

- we typically install laminate counter tops and not stone

- we use Sterling shower tub combos and have elminated almost all ceramic tile for kitchens and baths

- we buy stained cabinets instead of painted; they are 30% cheaper and are wear much better. We always install knobs and pull bars to minimize grime and wear on the doors.

- we typically use the same paint "White Clay" in eggshell from Behr, not available anymore but Sherwin Williams custom mixes it for us. It has a fresher look than the customary "Antique White" which looks like 10 years of chain smoking to me. Ceilings always flat white. Bathrooms in semi gloss with a mold inhibitor additive. And of course always green board in bathrooms and basements.