All Forum Posts by: Account Closed

@Ryan Billingsley 

If the carpet is stained and can't be cleaned, you should replace it.   The test is, would you live in it the way it is?  If not, would your tenant be excited to?   

The answer to your question is it depends.  It depends how determined you are to find a good deal and to use contractors that provide good value. As always, get at least 3 estimates and try to work directly with those doing the work, not a company with high overhead.

Generally, new carpet in a 4br costs me about $7-800 for upstairs only.  You can save money if the pad you have is still usable (if so, tell them no pad).  Depending on where vinyl flooring is, if it looks bad, I might replace it with tile. If it looks okay, keep it.

Keep in mind you're running a business. Your product must provide greater value than competing rentals if it's going to attract the best tenants.  Find a way to do that without spending too much.   A few things that are always worth it: (1) full house cleaning (it should be spotless), (2) decent low-maintenance landscaping (you need to attract prospective tenants into the door (plant some flowers), once they're in, don't dissapoint them/keep them excited...(3) clean paint, (4) nice updated lighting, particularly in kitchen and bath.

@Ryan Billingsley 

My pleasure. It's good business to treat your tenants well and let them pretend it's their house within limits.  It helps minimize turnover. All my rentals have 2-3 year leases and many of my tenants are connected to me on Facebook. It's pretty cool to see photos of my tenants son's birthday party in my house on Facebook!  And I'm making $$$ providing this.

Life is good.

@Mark Forest 

Yes, the vinyl tiles that look like wood from Home Depot.  I use them in all my rentals and most tenants can't even tell it's not real wood.  If one tile gets damaged, just replace it. Cheap (20 cents a foot) and simple.

Ryan,

I allow them, except for aggressive breeds.  Your residents want to make your investment property their home.  Let them and, if you've chosen them wisely, they'll pay the rent and take care of it like their home...and they will generally STAY longer (ie. lower turnover/vacancy cost).

Also charge whatever the convention in your market, typically $200+ per pet deposit and, in some markets, you can get $10-$15 "pet rent" per month.  Be careful though, if you charge too much you will not be able to compete with other properties. 

Also, make sure you use "pet friendly" surfaces and the property has a back fence.

@Jon Holdman 

Thanks. Yes, I've had that sane issue as well after a foundation repair job. Turned out it was a leak in the sprinkler system box.  Lookout for plumbers who like to add extra 90 degree elbows or other "piping trips" to encourage repeat visits.

@Nik S. 

Check the water pipes going to the street.  There might be a leak before the piping gets to your units and if it is there, it's likely a big leak.  Get an experienced/reputable plumber out there and they should be able to locate it pretty quickly.

@Thomas Haskell 

I hope this investment goes well for you. Please follow up once you've got them leased out.

Yes, @Anthony Gayden , but what you're missing is that there a few markets like San Francisco... and it is my believe that hoping for appreciation is speculation and not investing.  I can predict cash flow to a 95% certainty.   Do you know anyone who can accurately predict appreciation? 

Yes, hopefully you're not at the peak of the market.  My feeling is that you already are or are very close, maybe 12-24 months from a PEAK.  Definitely not at the bottom and little expansion left...  Lot's to lose if market turns down and little cash flow lease negative return.

Kenneth,

Thanks for posting this. Very impressive with your work and quick pace of building!

What's your estimated return on the project and total timeline from buying the lots to selling the finished product?

I'm now raising a fund and am an investor in TX, NC, SC, and various other locations.  If I run across any infill opps, I'll be sure to get in touch with you.  Please shoot me your coordinates.