All Forum Posts by: Tyler Haanen

I’m just starting out like you so I hope to get my first one up and running shortly. Our remodel is a week from completion.

 But based on the information that I receive from Furnished Finder I have seen a few other reasons for medium term rentals, including temporary jobs, relocations until a permanent housing solution, traveling machinist and a manufacturing position. Other than that a majority of the applicants have been nurses/medical techs

For your rehab line items, some seem off one way or the other. I would encourage you to get some labor quotes since I don’t know if you have those included. 
what exactly are the renovation plans? Painting just means painting the entire home, all rooms? 
Windows are expensive and I would avoid unless necessary. 
Bathroom vanity seems like a lot but maybe it is a large vanity.

To give you some comparison I am nearly completing a renovation for one floor of a duplex. Here's the scope of work done:
Bedrooms/Living room: Demoed out old carpet (did this ourselves), painted all walls and ceilings, and wood trim. We got the hardwood floors refinished (we were going to do LVP, but our floors were in good shape and it was more cost effective). We removed all closet and bedroom doors and got new ones from Menards. We plan to replace all lighting and plug/switch plates. (nearly there)
Bathroom: Completely demoed everything to the studs. We had to get some rewiring done in general and for a bathroom exhaust fan that was previously placed above the shower (instead of in the middle of the bathroom). We also got old galvanized piping cut out and replaced with PVC piping. Our plumber also installed our shower mixing valve. We put up new drywall, had to create a frame around the vent of our exhaust fan since they cut the exit point under the ceiling jousts and we didn't want to cut another exit point out. We put in a tiled shower, new bathtub, and waiting on the new toilet, vanity and bath fixtures to be put in (materials already purchased). We painted the new walls and got a new secondary light (light above the mirror, our new bath fan has a light) and bathroom mirror. We also a got a block window installed to replace the one in the shower.
Kitchen: New flooring replaced with LVP, removed some cabinets to make room for dishwasher, replaced countertop, painted cabinets and replaced cabinet hardware. We still need to replace the two lights in the kitchen. We plan to also install a garbage disposal and since our floors just got finished, our appliances will be put in soon. Kitchen was also painted. I'll post some befores and afters (thus far)

Budget so far and with some more estimates for work not done yet is about $22,500. Atleast 15K of that is labor. Materials were bought mostly from Home Depot, Menards, and Floor & Decor for flooring/tile. Paint from Sherwin Williams.

This is just the work for inside the unit. We also had to replace a water heater, both furnaces and the roof. (those alone outbid the budget for the work above).

I intially thought I would spend 30K total on the the entire property, but this is my first one, and I was way off! I hope this helped. I believe we got a very reasonably priced contractor that does good work, but we had to subcontract out electrical and plumbing. The negative is he takes on a lot of other jobs, has a small crew, and our project is probably taking longer than it should.

I hope this information helps.

Not sure why I took such bad before pictures, lol.

You can post your property on Furnished Finder without furnishings and say that it will be furnished later on to see if you have any demand.

You can also call them and begin to get emails for your area periodically. There are two types of emails:

1. Housing request stats and Housing search stats in your area for the month.

2. New tenant request from actual people (their personal information is slightly hidden). But often they will put the location of the hospital they are going to have a contract with.

This is free.

Furnished Finder also has a stats page to search your area and see if it makes sense.

And finally, I think a good idea would be to call the nearby hospitals directly and see if you can’t figure out more information on how often they hire travelers and what they do about housing. 

In addition to what Nathan posted above, I would say that your rent seems very low for I presume a 2/1 SFR. Even without knowing the area, this seems low, but maybe I am wrong. Regardless of your numbers, you're not cash flowing after the refinance so I wouldn't want to get into this one as a buy and hold. Perhaps it would be better looked at as a flip?
another comment on repairs they do seem quite low, what do you expect to repair? If you have to replace a roof, already that doubles your budget (10-15k in my area).

Give us more information and others can provide you more insight. Good luck!

You can post the pictures without furnishings to see if you have any interest as a medium term rental on furnishedfinder.com

Just indicate that when they rent it from you it will be furnished.

You will have to pay their listing fee but it’s better than buying $6K in furniture without any demand.

I can't say I've done a ton of research at all, but I ran across this company, doing this in a limited capacity so far (only Portland and Milwaukee currently). It looks like it should streamline seamlessly with AirBnb or Vrbo:

https://hello.radious.pro/abou...

Something to keep an eye on as it expands!

 Correct. All the more reason to go for deals with a healthy margin for error. BRRRRs are easier in appreciating markets on the back end. But in all BRRRRs you’re relying on forced appreciation not market. Either the market changes are a bonus/cost of doing business, depending on how prices moved.

 Yes, your equity would be 40K. 

Your property is worth the ARV of 160K and you have loan of only 120K. So you own outright that difference of 40K. As you pay off your loan balance principal, that loan number of 120K becomes smaller, leading to more equity. Conversely, appreciation would push that 160K value up as well (but could also go down in a depreciating market). So both principal paydown and market appreciation create equity.

@Sam Bhattacharya

Anything at that price point most likely is in a C- to D Neighborhood. Milwaukee is very block to block sensitive, making it extra important to have someone who has lived in the city long enough to know which ones are great, good, fair, and downright bad. I have lived here for almost 20 years and I still learn more every time I drive around.