All Forum Posts by: Jai Reddy

Jon, thanks for your input.

In 2005, I built a 2,370 sft single-family home in Waukesha, WI. My basis in the home then was $358,000.

I left Wisconsin in 2008, and have the home rented to the same family since then, who are glad to continue renting until I sell. They have never missed rent once in the last 7 years. My rent is set at $1500 per month, tenants take care of property management completely and send me receipt for any repairs. Repairs each year are less than $150, so tenants reciprocate a lower rent charge with good upkeep and low repairs.

I want to liquidate this home in Wisconsin and focus in my state (Oklahoma). But putting the property up for sale will drive away my tenants and their monthly rent check (I agree rent could be more but I will not gain much considering my annual income)

Thanks for reading, I appreciate any input to what you would do in my shoes.

If the house is on a concrete slab (as in Oklahoma/Texas), I would not install anything for flooring, and instead look into getting the concrete floor stained/epoxy coated.

My next option is porcelain tile using a modern rectangular tile instead of square. Lowes/Home Depot run special pricing on floor tile, $2/sft.

If only one lot is empty, I would check if it is in a flood zone, or if there is storm water easement in the back or side. Also, trees on the property will make construction costs higher than without trees as those trees have to be cleared. Lastly, look at the disclosures that should accompany it. It will usually disclose things that have to be disclosed.

Ryan P. I am not too different from your age, financial capability, Keys retirement goal, etc Am 38, with fortune of a spouse that makes 7 times what I make, who wants me to retire us to the Keys by the time kids are off to college - 14 years away which means I have to be crafting a strategy and executing it now. With two SFH in the 300K range rented out, I am happy with their rental price points and class of tenants. I might stick with SFH in that range and have fewer high quality rentals than deal with many smaller units. I should be content to never be a true multi-unit property big shot. There is an article on BP about why SFH are better than multis and all those points apply to my nature. Additionally, should rental businesses ever become regulated in such a manner as to limit price increases, tenant acceptance, etc. I might sell off my SFHs than hang onto them. Multis may not sell that well in such an environment. Regulations are going to impact you as you say. Regulations are impacting my wife's practice as well and what was a rosy career years ago is half as rosy now.

I rented out my single family home in Waukesha when I left Wisconsin. House has been rented out to the same tenants since 2008. Haven't had a single missed rent payment because I screened the family personally. No maintenance items other than replacing one microwave and dishwasher in the last 6 years, and painting the exterior once. 

To answer your question, the hardest part is to find good tenants. The next hardest part is keeping good tenants. I've kept the same tenants without increasing rent even once over the past 6 years because I've wanted to keep them.

I might sell the house this year after the current tenant lease expires. Word is that the Fed is leaving an interest rate hike (from current 0%) in June due to good employment numbers and improved economy.