All Forum Posts by: Brandon S. Pangman

@Brandon S. Pangman

I love your feedback!!! Thank you!

Yes to tile throughout minus beds. Also, the longer the tile, the more authentic it looks. I’ve noticed shorter tiles (<36”) look like tile, so I’ve gone with 36” tiles. If you do that with ultra thin grout lines, it looks very close to a real wood floor, especially in pictures. It won’t feel like it, but it makes the house feel nicer.

Just make sure that whoever is doing it, if it’s on a subfloor that the trusses are strong enough to support the weight. A good contractor should know what codes say. I don’t have that problem because Oklahoma is on slab, but something to consider if you have a basement or a second floor.

I am thinking about wood looking tile as well! I was going to do wood looking plank tile everywhere but the bedrooms. Is that what you do?

Quote from @Patrick Sittenauer:

@Brandon S. Pangman

While you might not see the ROI "balling out", it will probably get you a higher appraisal. In the short term that doesn't mean much other than a lower ROI, but in the long term, that means you can leverage later in a Refi, HELOC, or Portfolio LoC.

Plus, if you ever have to sell, your house will be more competitive in that neighborhood, ie sell faster and for more. Personally, I renovate all of my non-low income houses with nice kitchens for these reasons.

Between the two options you’ve provided, I’m torn. I tend towards quartz due to lower maintenance costs, however, it can be damaged by hot pans. I didn’t know this until recently so a renter may also not know that and set a hot pan down thinking it’s safe to do so like on granite. Quartz in my area is also cheaper. I think I’ll still stick with quartz but it’s not one definitely over another.

I apply this same principle to flooring and get rid of all carpets in a reno and replace with wood look tile floors. The cost is higher, but the maintenance costs are lower and tile is much more durable.

Quote from @Greg M.:
Yes! This is something that too few landlords take into consideration. Nicer materials can result in faster rentals and less turnover which puts money in your pocket. One tenant told me he knew the place was for him when he saw I had installed an elongated toilet instead of the standard bowl. 

BTW, I'd go with quartz. I'd also talk with the smaller cutters/installers and see if they have any pieces left. I have one that is a friend and he frequently has remnants large enough for a two sink vanity. And occasionally he will have full pieces where the customer changed their mind.  

Quote from @Gary L Wallman:

Quote from @Brandon S. Pangman:

So I am going to be doing a major renovation on a unit. Current rent is $1150 but I believe I can get $1500/1600 if I ball out on the renovation. My question is what type of hard surface countertop would you use? Granite, Quartz.. or am I being stupid?

 I always improve my properties one grade above the area. That is, C areas get B finishes etc. Tenants do care, and it helps me stand tall against the competition and rent my homes faster.

Generally my B area renovations get granite countertops. A areas, quartz, unless I can find a particularly pretty slab that goes with my design. Either are way more durable then Formica, though granite requires periodic sealing.

Quote from @Jack I.: 

Quartz is subject to discoloration if a hot pot is put on it. Granite can stain if you do not reseal regularly. 

I put these in my places. I like Granite better and I make sure I reseal regularly. 

Quartzite is a terrible choice, easy to scratch, I had someone write on it with a pencil can not get it off.. stay away from that. 

Tile is so old looking, Formica is worse.. 

I think top end is $1600. However, I was just going to pay for it. I don’t want to refi because I have a 30 year fix on this 4 plex… but maybe I should. I am currently clearing $500 cash flow on each unit ($2000 on the whole building). 

Quote from @Olivia Grabka:

@Brandon S. Pangman how much profit will you make if you get the top end rent? I would suggest that you anchor your renovation spend to your projected profit for a year on the unit. A cash out refinance is an option as well, but interest rates will bite into your profits. We completed two cash out refis this year, one in March with a 4.75 rate and a second in May with a 6.25 rate; the 6.25 rate is reasonable but obviously eats into our cash flow.

If you plan on a cash out refi, go with low end granite & I would redo your flooring in the kitchen and the living with a mid level plank vinyl. An appraiser will give you max value for these updates, you can pay for the renovations this way and likely pay yourself with a portion of the refi proceeds.

Low end granite, mid grade vinyl = max appraised value & high end tenants.

@Brandon S. Pangman how much profit will you make if you get the top end rent? I would suggest that you anchor your renovation spend to your projected profit for a year on the unit. A cash out refinance is an option as well, but interest rates will bite into your profits. We completed two cash out refis this year, one in March with a 4.75 rate and a second in May with a 6.25 rate; the 6.25 rate is reasonable but obviously eats into our cash flow.

If you plan on a cash out refi, go with low end granite & I would redo your flooring in the kitchen and the living with a mid level plank vinyl. An appraiser will give you max value for these updates, you can pay for the renovations this way and likely pay yourself with a portion of the refi proceeds.

Low end granite, mid grade vinyl = max appraised value & high end tenants.

The most cost efficient option don't spend money on items that will not improve your homes value.  You also have opitons like Market Place or Outlet centers to buy appliances at a fraction of the cost to add a new look to a kitchen or bathroom.  Cut corners to increase cash flow and don't waste money on anything that takes away from your liquid reserves without adding equity.

Seems like quartz is more popular these days. Should you do granite or quartz? Definately!

@Brandon S. Pangman you have to look at the cost of recovery. These are made up numbers. If you spend $1500 and get a $100 per month increase. it will take you 15 months to get back your investment. If you spend 40k to get back $400. It will take you $40000/$4800 will be 8.3 years before you get your investment back. Good luck.