All Forum Posts by: David Liu

If it's on the perimeter it may be due to moisture or termites. I'd check for that before installing LVP and replace the subfloor where needed and treat any termite damage. 

Quote from @Roberto Vasquez:

Hey David. Thank you I appreciate the advice. Still on a learning curve. 
but for me the Toledo and surrounding areas. The shape of the properties varies. There is an abundance of single family properties. I think starting off that would be my main focus multi family in the future. I have numerous in mind that I saved on Zillow and Redfin. Also have a realtor buddy that is willing to give me leads when any off market properties pop up. 

Ok that's a good start. Now you should let potential investors know what the price range is for the single family home you're looking at. Is it a fix & Flip? is it a long term hold? 
How much money you're looking for?
What's the estimated after repair value? 
How long will it take to do the repairs/upgrades. 
Finally, you mentioned you're a contractor. What do you specialize in? Drywall, flooring etc... 
This will then help investors 1. See what their potential returns are.  2. See what value you provide (i.e. your specialty in the trades). 

Quote from @John Herold:

Hello all, what are some best practices for LVP floor installation for a manufactured home on a permanent foundation?

The click on / locking type seems like what most investors use, but repairs seem difficult without having to re-do a large area.  Is it possible to fix a soft spot without having to re-do the whole room?

How wet is too wet for existing subfloor?  Are moisture meters used or no?

What do investors use for the moisture membrane(s)?  Right under the wood and/or under the house in the crawlspace?  What materials are used besides the LVP itself?

I have heard that leaving 1/4 " along the perimeter can help expansion issues.  Is this true in your experience?

I assume it's typically best (if it's necessary to do so and if the budget allows) to re-level the home before the floors are installed.  Are floors typically installed before or after the cabinets are put in?

Thank you for your thoughts on any of the above!

 Hey John, 

I used be a construction engineer and installed LVP in own house. 

The click-on/locking type is the one to use because contractors are used to using them. That means there are higher chances you will find someone who can do a good job at installing it vs using a less installed LVP connector system. 

In terms of a soft spot, that's usually the subfloor and not the LVP (I'm assuming that's what you meant). Depending on where it appears in the room , you may have to remove the LVP and do the whole room again after the subfloor is repaired. But this typically isn't the sequence of events since it seems like you are going to be installing new LVP , so have the contractor repair the soft spot first then install the LVP. 

It'd be good to use a moisture meter and get the opinion of 3 contractors. 

As for a moisture barrier on above the subfloor and below the LVP you'll want to install what they underlayment. This is a moisture barrier. Do not just buy LVP with underlayment already glued on it as a layer. Install a separate underlayment layer even if the LVP you have already has underlayment glued on (it's usually too thin). 

1/4" is the gap you want to leave for expansion during the hotter months. 

Re-leveling can be done using self-leveling concrete, flooring contractors can do that and it should be quoted. 

As for floors being installed before or after. It depends. If the cabinets are touching the floor, I'd say put the cabinets in first and this way you know exactly where you need cut the flooring to ensure a 1/4inch gap between the lvp and the foot of the cabinet. 

Hope this helps

I would get quotes first and then decide what to do. I would also ask the hvac companies (min 3) what they would recommend. They do this day in day out and typically will have come across the same situation that you're in. i.e. radiator, summer is hot, old house, what to install for summer coolin? 

Hey Roberto, 

Thanks for sharing your heartfelt story. 

To get better luck in investors to partner with you. I recommend that you state what your buy box is. Are you looking for properties in the Toledo area? What shape are they in? Is it a single family home? Duplex? 10 unit? 

That will help other investors who are looking to partner, to get a better sense of what you're looking for and if it fits their needs. 

Hope that helps and good luck! 

I'd also consider renting out part of this property that you will purchase. 

This way the tenant rent could pay for part of the renovations as well or the tenant could just reduce your mortgage payment so you gain wealth quicker to keep purchasing properties. 

Let me know if you have any other questions,

David

Quote from @David M.:

@Michael Ashe Okay.  But, it seems one "sticking point" is the change in property taxes.  I know that parts of the country you lose your homestead discount, change rate for non-owner occupied, or just nothing (like my market).  So, you might want to research that directly for your location.  Or, was the comment you referring specific to your location?

Better to act on correct info.

@Michael Ashe, good advice from the other David. Just call up your local county tax board. They should be able to give you a clear answer on what your property taxes should be if you turn it into a rental. again, this is weird to me that they would do that but best to find out direct from the source. 

Hi Alon, 

Congrats on being close to getting your 1st investment properties. 

I'd ask for the rent roll, or income statements. Look at the numbers, see if it cashflows, what about vacancy?  

You'll want to have the right property management company set up. Not always a good idea to just use the same vendors as the seller as there may be improvements you can achieve. i.e. property management company doesn't give guests the easiest instructions to check in, so reviews are down. 

Hi Michael, 

This is assuming that you are staying in your primary home and house hacking. I was a little confused on the way you worded your question because it seemed like you were asking how to calculate cashflow if you didn't live in your home and fully rented out your house. 

Cashflow=Rental income- expenses

Rental income: how many rooms will you be renting out? How much can you get for it? Check Facebook Marketplace or craigslist (rooms for rent). 

Expenses: 

1. Mortgage

2. Property Taxes (never heard of property taxes increasing if you convert a house into a house hack. Very weird... property taxes typically increase when there is a tax reassessment (renovations done, ADU was added, etc...) So maybe that's what people meant when they told you your property tax may go up (i.e. adding an ADU to rent out). But if you keep your house as is, then there shouldn't been a property tax hike.

3. lawn care, utilities, parking spot 

4. saving up for capex expenses (i.e. 5-8% of rental income depending on the condition of your home)

5. Repairs & Maintenance (5-8% of rental income)

Take a look at the BP rental calculator to see all the potential expenses you may have while house hacking. 

Note: if the cashflow comes out negative, you technically aren't "losing", because your tenant is at least partially covering your biggest monthly expense which is housing... 

"
Any pointers to further reduce monthly cost would be appreciated!

Also any pointers on renting for first timers would be appreciated !
"

To reduce monthly costs, you'll want to see what needs to be repaired or replaced prior to buying the property. See if the seller will give you a discount on the sale price based on those things that may break and cause your monthly cost to go up. Examples include: HVAC, the roof, etc... 

These are things that will increase your cost of ownership if not properly maintained. 

The monthly costs are unavoidable so take them as they are. What you can control is the monthly income. Some ideas would be, if there's a storage unit on the property and if not, put one in and charge a monthly fee to use it. You can also increase monthly income by doing medium term rentals for travelling nurses as an example. The rent is typically 1.5x that of long term rentals. 

Hope that gives you some ideas. Good luck