All Forum Posts by: Afam Agbodike

The overall message sounds like there isn't really a rule of thumb, and that I need to do my homework, which is pretty reasonable advice. I was hoping for something a little simpler like 5% - 10% of total property value or something like that, but just because I want something easy doesn't mean I'll get it. Sounds like time for me to go check out the competition and figure what is the appropriate level for the neighborhood. My plan is to find the minimum level to be desirable to my tenant base without spending too much.

Thanks for the advice!

I'm 2 months into my first investment property and am looking for guidance on what to do for the kitchen and bath. In particular I'm wondering how much to spend on kitchen and bath upgrades.

Some details on my property:

I bought a duplex in New Haven, CT in early June for $420,000 and it needs a lot of work (somewhere between $60k - $100k). There is a 3 bed 1 bath unit on top, a 2 bed 1 bath unit on the ground floor, and an unfinished basement.

It is an older building, and while it has pretty good bones, it is VERY dated and has some significant deferred maintenance issues. Most of the work I have no problem figuring out what to do, but I've been struggling to decide how much to spend for the kitchen and bathroom upgrade. The ground floor ABSOLUTELY needs a new kitchen, and the upstairs unit kitchen upgrade it is somewhat optional. If I were to fully remodel the upstairs kitchen there would also be the option of putting in a half bath.

The property is on the edge of a B class neighborhood, with a C / D class neighborhood nearby, so I will never get the best tenants, but I still want to target the highest quality of tenant for the location. I believe the 3 bed should rent for at least $2,300 and the 2 bed at least $1,900 (I might be able to get more, but prefer to be conservative on my projections).

So... any suggestions on how I should budget for the kitchen? I'd also love suggestions on the grade of the cabinets, countertops / appliances. I know laminate is the cheapest, but I'm concerned about the durability, I've never seen laminate that wasn't starting to get damaged after a few years)

Thanks for any help!

Hi Julie, I am a newby as well, I just bought a property in New Haven, CT. I'm not sure if I got lucky, or if it is the area, but I am expecting to get a good income from the property once I finish the necessary repair work. It is about2 hours from NYC and I definitely suggest taking a look in the Southern portion of CT, I plan to buy more in the area once I get this one rented out. Note: my property is a duplex, if you are looking for SFR then your mileage may vary.

Good luck!

In general principal I'd say you have a right to know who is living in your property, and have the lease be directly between you and the tenant.

How comfortable are you with this partner? If the relationship is good just respectfully let them know you are no longer comfortable having an intermediary and want to work directly with the tenant. If the partner reacts badly to a request like that, then there is possibly something fishy going on, which makes it that much more important to have everything in the open.

You may be able to recover your EMD if you have contingencies on the contract. I would personally be EXTREMELY unhappy with my lender if I was put into a similar situation.

How much would it cost you to get those inspections done? How long would it take to get all those things inspected? Are you still in the physical inspection contingency time period? What happens if the inspections come back with work? Did your lender inform you of these requirements early on? Did they give you any alternatives to getting the repairs done in a week?

It seems very unlikely that any of that work could be accomplished in a week, but in many cases money can be held in escrow pending completion of the work, or to be used towards repairs.

It sounds like your lender has put you in a very difficult position

Regarding changes to the lease, that is out of scope for an annual inspection. Talk to an attorney on what is the best way to make changes in your area. In my area you need 30 to 60 days notice to make any changes to a lease depending on how long the tenant has been there.

Regarding the inspection, yes, pick a date that is convenient to you. If the lease says 48 hours advance notice, then you need to provide at least 48 hours notice. In my experience you should post it on their door, and probably also email them as well if you have their email address. If they tell you they will not be there that is probably fine for you to enter as long as you've given proper notice and that is on the lease, if they say they do not want you to come at that particular date, then best to discuss when is a time that works.

Having been a tenant, it is normal for a landlord to post notice and enter my apartment for some inspections, don't worry about awkwardness. As long as you follow the terms of the lease and you and the tenant are both reasonable it shouldn't be a big deal.

I hear you, doing a reno DIY is not for everybody, and it's completely understandable to vent, but I will point out, you did grow:The experience you learned from the DIY is worth way more than podcasts / reading, you just got the real learning of what it takes to do the job. At the very least you learned that your time is valuable and it is way more worth it to you to pay somebody to do the type of work you don't like, which is a very valuable lesson! You also know how what is involved in doing the work, so you can better evaluate what is worth having somebody else do.

I don't say this to take anything away from your venting, but just to remind you of the great lesson you learned. Now you know, rather than have to wonder, whether or not you should do the work yourself.

Good luck on your next one, it will go more smoothly than this one!

Quote from @William Coet:

Quote from @Bill B.:

Quartz and granite are very cheap from companies that specialize in it and sell 8 foot precut slabs. Pre-pandemic/supply chain it was under $300 a slab. I’ve done maybe a dozen kitchens from $1300-$2200 including removal of old countertops, materials and installation of new materials. Usually all done in 3-5 hours. 

Thanks for the reply.  With the granite, is there a way to do a counter that has a corner (where a laminate countertop would be mitered with a 45)?

It is definitely do-able. Depending on who you go with it may cost extra, but shouldn't be too expensive.

If it helps the seller feel more comfortable, then go for it. Lydia provides some great advice above, and to add a little more context, the term "as is" when selling a property is mainly about setting expectations. It really just means that the seller isn't going to fix anything before closing the property. It may depend on the laws in your state, but my experience is that a seller is required to disclose any defects they are aware of, and the buyer has the right to do an inspection. If there is a contingency, the deposit should be returned if the contract is cancelled.

I'm not a lawyer, and laws vary by state, so you probably want to verify all of the above with an attorney for your specific situation.

Quote from @Richard Bell:

Hi my name is Richard Bell I'm looking for someone local in the biz near Chillicothe Ohio to help for free so that I can learn and add value to someone's portfolio. I learn fast and am smart enough to know I don't know much!

Hi Richard, you should be thinking of ways you can bring value to an investor. If you don't have money or experience that is most likely going to be your time and labor. I suggest listening to this podcast - Bigger Pockets Rookie Podcast 137: Turning $3,000 into 10 Doors (As a Former Parolee):

https://www.biggerpockets.com/...

It sounds relevant to your situation. It is VERY likely going to come down to how much you want to change your situation and how hard you are willing to work.