Completing first closing w/BRRRR

[Christopher Whitten]

Need suggestion!

I will be closing on my 1st Investment property this week in Texas. I am successfully working through the BRRRR method and the pieces are slowly coming together. I am in process of lining up contractors to complete rehab/renovations to begin as soon possible after I close.. the only problem is there is already a tenant in the property who is currently renting until November.

1. How should I go about completing renovations such as pier & beam foundation repair, and kitchen remodels? Tenant is only paying $1000, but I need to raise the rent to $1500..

[Andrew Postell]

@Christopher Whitten thanks for posting.  Always great to hear from a fellow Texan.  Congratulations on taking your first step.  Many won't even do that.  I remember my first - I did hardly ANYTHING right....and now I am a millionaire thanks to real estate.  I don't mean that in a bragging way (although, it does feel good to say it) but I mean it in the way that you may not do very many things "correct" on your first deal.  But stay with it.  Real estate is a long term plan and if you do it right it will change your life.

Now, part of your answers here will depend on the property and the type of work here.  For example...

The Foundation - if your foundation is a "pier and beam" foundation it will be different than a "slab" foundation.  And if the piers are needed on the edges...that will be easier to navigate.  But if the piers are needed on the internal parts of the foundation that might mean something different.  If the foundation piers are along the edges...then your foundation company can install those without bothering the tenant.  Well, if the tenant works and leaves the house (that is recommended).  They can usually knock out most work in one day and be gone before you tenant even notices.  Same with piers that are needed on the interior....but only if it's a "pier and beam" foundation - if they can crawl underneath the home.  If the foundation does need work on the interior part and you have a "slab" foundation - that means they have to jackhammer out holes inside the home.  Like in the living room and bedrooms.  And that you don't want to have done while the tenant is there. I've attached some pictures here for some examples of what they will need to do.  Even if they don't need access to the home, the tenant still has rights in Texas - they need to give permission.  Depending on the existing lease there might be verbiage in the lease where if they don't allow access then you have the right to evict...but if no such verbiage exists then you might not have very many options.  And who really wants to evict a tenant anyway.  It's a hassle and I would encourage you to avoid it every time.

So could you have to wait to fix the property?  Yup, you certainly might.  And that's just the foundation part.  I know some contractors that won't repair a house at all if it is occupied.  So even the kitchen, etc. might be in a waiting pattern.  Anyway, I hope this helps in some way.  Feel free to post if you have any other questions.  Thanks!