All Forum Posts by: Austin Tully

  Honestly selling House #1 sounds like a good option.  If the market is hot like you claim then you can get a good bang for your buck.  You can also either sell it before the roof is a problem or completely replace the roof & possibly have a higher value for your sale. 

I would keep House #2 for the simply reason that your CoC is so high. It seems as though you don't have as much cash involved on that one & are garnering a grand return monthly. HOWEVER those numbers are not yet proven but if you understand your market & know someone will be willing to pay your rental rates then you're in the green.

  I would do whatever you feel is right, carefully analyze your numbers & make a decision if need be.  I think your main question could be do you want to hold more or less risk?  

  In my opinion transparency in business is everything.

  If for whatever reason you feel that you need to tip toe around the answer, then you're hiding something.  If the tenant or thus potential future tenant seems as though they'd be the type to try to manipulate you then they may cause more problems down the road.  At the end of the day though this is a business we are getting ourselves into and MUST have a backbone.  

  Of course their maybe some negatives that come with being transparent and telling every tenant you're the landlord but it may not have to even come to that point.  With scaling comes property managers, contractors, etc.  Those people should be the ones directly dealing with your problems and if something persists or is very serious it will go to you the landlord.

  This is just my take on it, perhaps testing out the 2 different strategies on 2 separate tenants can give you a better idea on how a tenant will react once given certain information.

  Hello Bigger Pockets members!

  So since the beginning of this year (2019), I have decided that I want to start investing in real estate, specifically, "Rental properties".  I have read a handful of books such as the Bigger Pockets:

  "How to Invest in Real Estate", "The Book on Managing Rental Properties", & "The Book on Rental Property Investing".  So I have gained much knowledge on strategies, commercial real estate vs Residential real estate, tenants, etc.  But something I don't see a lot of is the specific discussions on what people use to rehab a property.

  I have been looking around on 'Home Depots' website for materials in regards to flooring, paint, bathroom accessories, kitchen, etc.  I scan through things however I obviously want to get the best bang for my buck on whatever it is I'm willing to purchase for my investment.  To get more specific the property I am purchasing will be a 3 Bed, 1 Bath Bungalow and I am adding 2 more bedrooms and a bathroom.  The property will be my primary residence & I am looking to rent out the additional rooms.

  I want materials that will be LONG LASTING, ENERGY EFFICIENT, & DURABLE (Tenant Proof).

  I think this discussion can benefit a lot of people because if one things for certain, its the fact that almost every house needs a rehab when purchased or soon will require a rehab.  It is super helpful to understand when heading into a Home Depot what it is you should buy and what will last you DECADES!  This essentially will reduce your long term maintenance cost's & keep more money in your pocket when the rehab is in progress as well as down the road.

  Thanks. 

 Some very good points on why pets can add some sufficient cash flow.  Charging a premium for housing a pet can definitely add extra cash other landlords may have not been willing to take due to the risk for damages a pet can cause. 

@JD Martin Thank you for also listing the many cons to allowing pets in a rental property. Pets can obviously cause some serious damage to a property whether that is flooring, walls, or even the physical appearance of the back yard.  I know that when I was younger at an apartment I lived in with my mother, our dog actually scratched at one of the walls, severely damaging the corner of it and it needed repairs.

I think this discussion gives a very well rounded picture to what to look for when deciding if you should put your rental property on the market as a pet friendly or not.