All Forum Posts by: Stephen Schoon

I'm taking a heloc out on my current house, purchasing another house with it (and moving into it), selling my heloc'd house immediately and paying off both houses/debts and should have a bit of left over cash in hand.

I heard a podcast recently wherein the guest said he finished his rentals so that, basically, his houses were the best on the street and fetched the highest tier rent in their market.  The purpose, in short, was to attract better tenants.  So I thought to myself that that's a good idea.  He didn't go into specifics, but I don't think he means putting granite in a formica neighborhood, but it may mean putting in stainless appliances and foregoing the vinyl for laminate or tile.

A couple months ago I was walking through a unit my buddy was light-rehabbing after tenant move-out.  He explained to me that he won't do this and won't do that but will do a couple other things because that's what the tenants expect.  They expect that the hardwood floors from almost a hundred years ago will be discolored, scuffed, and a little uneven.  He won't refinish them, but he may reseal/topcoat it.  You get my point.

Both mind-sets make sense.  One part of me wants to finish a unit/house to meet the expectations of the local tenant population, but another part would be willing to spend a little more to attract that quality tenant.

So what do you landlords think?  Is it/can it be worth the money to finish better and worth the (i assume) extra time to land a better tenant?  After all, If I can't get a good tenant with standard finishes I'm not going to get a good tenant with better finishes, right?

Thoughts? Opinions?

Thanks for the reply @Kim Knox. You have a good point regarding an agent being knowing what mold is vs working hard for you and I agree with the idea. In answer to your questions: my cash comes from liquid savings and a HELOC. My price point is in the bottom third of the market, still well within the market range w/o lowballing. I'll be doing most of the rehab myself and hiring out what is beyond me or what I don't have time for. I don't have a definitive term for how long I'll hold the rental. In theory, I'll hold it till I die, but will sell it off for the right reasons.

My plan is to buy and hold, not flip so I'll live in the house only as long as I need or want to.

@Adrien Hebert, I don't have any contractor recommendations, but I can recommend the meet up. My wife and I attended october's event last monday and it was very helpful. Lot's of good people and good talks.  I highly recommend attending.

Not accusatory at all, @Mindy Jensen, just answering your questions as tersely as possible :)

I have not asked about either handoff.  The first one didn't bother me as much because he relatively competent, didn't seem hungry or a go-getter, but competent.  It's been a crazy busy week, but today seems to be slowing down and I plan to shoot the 2nd handoff original realtor an email.  

My gut reaction is/was to dump this agency and move one, but didn't want to pull the trigger till I found a suitable replacement. This Monday I attended a meet-up in the target area and found a few options.  So the ball is rolling again.

Thanks to all for the input thus far!

@Mindy Jensen, I'm not lowballing properties. The ones on the mls that I'm looking at are distressed properties that are priced to sell and unless otherwise discussed and agreed upon, I would never ask an agent to blast out a slew of silly offers.  I have cash and am only looking at properties whose asking price is 10k below how much cash I have available. 

I've got a question for you agents.  It's basically, what are reasonable expectations I can have of my agent?  Allow me an anecdote to specify.  I plan to move to a different city (1hr away) soon.  My approach is to purchase a fixer upper with cash, live in it while I fix it up, refi, move and rent it out (blrrr).  With this in mind, I ask my current agent if he knows any investor friendly agents in the area in which I'll be moving.  He sets me up and I have a meeting with a veteran agent who's worked with investors a lot and has done a little bit herself.  She seems sharp, organized, and still hungry.  

A few days after the meeting I give her a list of a couple houses I'd like to see, but she replies to my email and says she's on her way out of state to a cousins funeral and asks if it's ok if her colleague can show the properties in her absence.  Of course it's fine, I reply.  I then talk to this colleague who, it seems, has been given no information about me, my plans/situation, financing, etc...  and I get the distinct impression on the phone that she's not a 'substitute' agent, rather a replacement. A couple days later, Saturday, I get a dotloop doc to sign... a new exclusive buyers agreement. Whatever, I'll play along for now.

Sunday afternoon my wife and I drive the hour to see 3 properties.  The agent acts scared and says things like "I don't go into abandoned or vacant houses especially when the power is off."  We definitely needed a flashlight and she's freaking out a little, not tons, but a little.  

One of the first questions she asks us is, "so is this what yall do?"  I began to wrack my brain trying to imagine a scenario where that question is SOMEthing other than the obvious.  She had no idea what/why we were looking at these houses.  Throughout the first house she was asking us all kinds of questions too.  I can't for the life of me remember exactly what they all were, but they blew my mind.  In my opinion, no one calling themselves a real estate agent should be asking me 'whats that?' when the answer is 'mold.' 

After the showings (and throughout) she was definitely under the impression that she was our for-reals agent.  

I'm a new investor, I get that. And I can even understand not giving me your best agent because I've got no track record and statistically I will waste yours time for weeks/months then just disappear, never to be heard from again.  But what is this bait/switch hand off thing? Is this common practice?  Am I a jerk or something? oh, and please note: The last agent I had did the exact same thing. I had coffee planned with him, but he had to reschedule and sent a colleague in his place, and the colleague is who I got stuck with. 

I'm not very experienced in the REI field, but I have done quite a few things around the house over the years and I'm not stupid. I can hold my own in a REI conversation, I've listened to all the BP podcasts, I've attended many local meet-ups, and 2 of my 3 'best' friends are active investors. I can accept being given a new agent since I'm a new investor, but should I have to drag her along? What I want and need is an agent who knows more than me and is more experienced than me. Not necessarily a 40 yr veteran/expert, but someone who's at least been in the game for a little while. I need an agent who, when she says she'll get me comps tonight (on sunday) actually DOES that (it's tues eve and I still don't have them).

So I ask you agents, what are reasonable expectations in this scenario?  what advice do you have for me?

Thanks!

Makes sense.  Thanks so much for your time, @Darrin Carey. I appreciate all the time you put into these forums (ive read a lot of your posts here in the dayton forum) and hope to see you at one of your rei meetings when I finally move back to the Dayton area!

Hypothetically, given that a good/great deal was avail at an online auction, would the fact that its occupied deter you, @Darrin Carey? or would you just move ahead with eviction if necessary?  in this kind of scenario, historically in this area, what have you seen with regards to 'tenants' trashing the place during eviction?

Thanks so much for the insight @Matt Stewart!