All Forum Posts by: Byron Bohlsen

Robert,

You are correct when you fix something that's broken you write off the expense for the year. When you improve something you depreciate it over many years. This is all well and good but generally speaking you don't do the work just for the write offs as its still less money in the bank vs not having done it at all.

Improving a property and getting more rents and/or better tenants is another matter.

3 units will likely be less maint and capex cost, and is much closer which is good in case you need to get involved. 

And as others have said it would appear at first glance the quality of the neighborhood and tenant would be higher for the 3 units, but that is something you need to determine. 

Also no/low money down means each house is a much riskier investment unless you have equity built in some other way... which brings up the next question how much equity will you have for one deal vs the other and how do you think you are going to get financing for the low/no money down houses. 

Not enough info but would say the 3 units is better and safer. 

Bob,

If I move to Honolulu will you teach me your ways? :O 

As far as rents chasing value I think they can pull each other up.. Here in Minneapolis the last couple years the demand has been huge with 2-3% vacancy causing rising rents, which seem to have caused values to skyrocket. I wanted to house hack in a certain part of town but it was to far to drive for the other half... Would be enjoying some nice appreciation right now. 

Can your cable company force you to pay your cable bill? 

lesson 7) Don't over improve! 

It's one thing to have one of the nicest houses to attract the best tenant but that interior looks over-over improved to be in a d area...? 

Hope you get good tenants and recoup the money someday. 

Would you mind sharing what flooring that is? It's very nice. 

Top to bottom and dirtiest/disruptive first

Did some research and it looks like vast majority of people who havent used them before have an immediate negative reaction.. worried about dust/grease/insects etc, and the vast majority of people who have used them actually like them and the fears are largely overblown (not surprising, human nature for most is to be afraid of change or different). 

So in conclusion... Would probably find success doing a mix of cabinets and open shelves in hip/trendy/young rental areas as Sarah said, but would flop hard in most other areas.

I may try a small wall with them as an experiment and to save money as this project will already have more cabinet space then average for the area. 

No idea! 

I agree if all your stuff is cheap and shabby the person may not like it... or maybe they wont care, which is why I would do a mix so they can hide their ugly stuff and display what they like. But thinking about it I could see it being nice while cooking to have all your spices, plates/pans etc all right there in the open.  

Strongly considering doing a mix in our next project and seeing how it goes. Quality shelving up against a white subway back splash. 

What do yall think about having a mix of open shelving and cabinets? 

Has anyone tried incorporating open shelving in their kitchen remodels? Specifically for rentals? Pros/cons? Good experiences? 

Seems like a good way to lower costs and up the wow/desirability factor.