All Forum Posts by: Justin V.

@Justin Voegele

Also properties can have a tough time sitting vacant. Winterized properties can get their foundations frozen and speed up wear/ crumble in the north.

An unchecked roof leak can destroy a building.

@Bosko Mijatovic

What are your vacancy laws? We have some where I invest, but I’m not overly familiar with them yet. Something to ask about and read into.

How cheap could you get it livable and what would it rent out for? What makes you not want to make money in rent in addition to your appreciation. $$ off rent for l lawn maintenance and painting never hurt. Having a paying tenant could definitely save you having to legally evict a squatter while they trash (so much bodily waste) the place oR cook meth in it. Know squatter rights for your area too.

I’d definitely keep insurance on it so you don’t end up losing your empire when someone breaks in and hurts themselves.

We’ve kept a watchful tenant at below market rent to keep an eye on our construction projects in the building and next door.

-Justin

@Kyle Petitjean

I’d say it’s ok to do, but I’d want to know the scope of work and what’s on the other side of the wall.

Inside a Closet: Drill baby drill all day long. And screw an access panel back up once done.

Living room or someplace highly visible where a drywall patch, multiple coats of tape/mudd/texture, and paint will be needed: I’d start asking why they can’t just cut the back out of the sink cabinet to do their work because what might be easier for the plumber may take multiple days and trips from a drywaller and painter.

-justin

@Ilya Plugovoy

Sounds stellar. How much is origination?

@Tyler Segebarth

Hi Tyler,

Welcome to landlording. I’d list it right now for availability the day after the tenant moves out. If it hasn’t been lived in long/hard and you placed a good tenant who you trust will move out in time, I’d plan to turn it that night.

I typically list 2-2.5 months before move out planning for a one night turn. Packing happens on the last couple weeks tops I believe. Use time between blocks of showings to jot down a fix-It plan or even fix minor items between showings (light bulbs and loose knobs mainly). Get a vroomba (business expense) and find some friend(s) who can paint and/or clean. Vacancy is expensive for me with rent at about $1500 per month. I pay my friends $50 per hour and subtract it from the deposit except for wear and tear. I’d rather pay a friend $200 for a night than not make $750 while it sits empty for two weeks. After 1 year, assuming it started as a fresh unit, I’d consider close to nothing as wear and tear.

Adjust your future leases if needed so that move out is at 2pm on the last day of the lease. Incentivize your current tenant to move out early or do their own repairs (pAint and brushes are

In the basement) if needed or current lease is up at midnight. I send a generic move out charge sheet I found using google and am upfront at move in that do whatever you want, but it needs to look the same at move out as move in.

Last bit, if something looks really bad that I notice during showings, I’ll schedule a time that week to get it fixed while the current tenant is in place (as long as I feel the tenant won’t re-break it in that time).

Good luck,

-justin

@Aaron Zimmerman

I’ve upgraded to make a property more appealing to a higher class tenant. Similar 1900 property. Lead paint probably isn’t an issue in current condition since 1978 is when they figure lead paint stopped. In the 42 years since, you likely have 4-8 non-lead coats over it as a shield (assuming new paint every 5-10 years).

Pulling the windows will likely disturb the lead, so keep that in mind. As others have stated, don’t expect to get the investment back out. I haven’t seen value realized on resale or refis either. Best of luck. Let me know if you have any other questions.

@Aaron Zimmerman

Hi Aaron,

This doesn’t answer your questions, but how old and well insulated is the property and what kind of windows are you replacing? Single Payne with storms?

I’ve done a little research on window replacement and learned it doesn’t often get the great utility savings it’s sold as. Also if your property is old or poorly insulated, windows won’t save you much as heat is likely escaping everywhere.

I usually search a local Facebook group, google and angies list reviews to figure out who to get quotes from.

@Jamie Heinz

Yep. Conventional 30 years fixed loans.

@Jamie Heinz

I’ve done a few cash out refis on residential duplexes and every time they look at my debt-to-income ratio and verify I have access to about 6 months of cash reserves.

Unless you have solid rental income, I would expect you to run into problems qualifying for the new loan (refi). Best to talk to a lender and see their thoughts though.

@Theresa Harris @Gervon Thompson

Listen to Theresa.

High w2 income is the key to lots of nice low interest 30 year fixed loans.

If the interest rates are lower than mortgage rates, let them ride until your debt to income ratio catches up with you.

House hack a 2-4 unit with lots of bedrooms and rent out the other three sides plus charge roommates to live with you. Get as low of a % down loan as you can find to get started right away. PMI is minimal compared to the rents it allows you to make.