All Forum Posts by: Kenneth Sok

@James Wise - Thanks for that suggestion! 

I was thinking that but I haven't investigated the costs to do that yet.

ARV in the neighborhood is around 100-120K.

This is a 3/2. Solid rental area. Doesn't need lots of bells and whistles but it has been neglected for some time. I'd rather focus on some of the other areas than the ceiling.

This is an image of the area before I scraped off the popcorn ceiling. Fan and those cabinets are going to be removed and you can see that some of it  is already peeling off. That was my concern with getting it off the walls.

Just closed on my 3rd rental. This beauty was built in 1977.

I learned today how much "fun" there was in trying to peel off painted popcorn ceiling. It definitely doesn't want to come off easy. I've already taken out a 4x4 section of the ceiling but there's another 1400 sq. ft. to go of which I am not looking forward to.

Do anyone have any recommendations for removing it? A DIY formula for removing it perhaps or some product that works really well?

Should I hire out a specialist (especially considering it may have asbestos - of which I haven't checked yet)? If so, any recommendations?

Or should I just keep it, fix the existing popcorn ceiling and patch up other areas? There are several other areas that need to be fixed but it's not that bad.

My preference is to remove the popcorn ceiling as the look is terrible but I plan to keep it as a rental. 

Thanks in advance for your input!

We typically work with a title company.

Some title companies will do a blind HUD for the sellers. They will not have the amount listed going towards you. Check with them first to confirm they can do this. The bigger name ones (i.e., Stewart Title) will not do this.

We haven't used a double-close yet but I would really only do this if we fear the buyer is going to freak out on our assignment fee. Most of the time, they are pretty cool with the amount we are making.

@Maggie Tasseron

Thanks for your input! 

The flooring is carpet and vinyl. It hasn't been updated since the 80's so I'm sure there's not much to salvage there and will certainly get replaced once the tenant moves (however long that may be).

From the many inputs thus far, I believe slapping lipstick on this pig may not do much for the appraisal. Hopefully, a quick/cheap cosmetic treatment will help with the overall feel for the appraisers. That's probably the route I'll take for now until the tenant moves out and I can do a complete overhaul.

@James Clark - I've heard good things about Kilz. 

One of our big rehabbers has recommended it and I was just looking into it. Thanks for referring it as well. I'll be exploring this product more.

Haha, as for the trade, it'll depend on the terms. I'll need draft options, signing bonuses, and a first round pick on top of that too.

Best of luck with your "fun" tenant!

@Tom Brooks - Thanks! I'll have to investigate how to resolve the oil-primer odor. I've read some odd solutions like putting a basin of water with an onion in it. Seems like a weird solution but I'll look into it.

@Roy N. - I hadn't thought about having to redo the sheet rock. That is a very actual possibility now that you mention it. I'll make this decision once the tenant vacates.

@John The

@John Thedford - I haven't had an appraisal done before but I've been told you can have 10 different appraisals and 10 different opinions. I'm trying to make sure I do whatever I can to ensure the appraisal I'm hoping for. Raising the rents further is already part of the plan as he was under market rates for so long.

Luckily for me, since I'm already doing more than the previous landlord, he's been happy to pay a higher amount. I'll definitely consider raising it a bit more to compensate for the added damage he's doing.

@Tom Brooks

Thanks Tom. I'll look into that solution.

If I decide to not get rid of the smoke smell, putting just a regular coat of paint may be another way to go.

@Justin Tahilramani

I agree, I'm really just putting lipstick on a pig here. It's more the optics of getting the house in better shape for the appraiser. From your experience, will a new paint job not play a very big role in the appraiser's eyes? I feel very comfortable with the comps in the area but I'd like to make sure they don't have any additional ammo against me.

I've already taken care of other deferred maintenance: foundation, roofing, kitchen, and bathrooms.

I plan to keep the tenant in there for a while as he's been there for 20+ years already. Can't define a better long-term tenant than that.

I have an inherited tenant from a property I purchased from a tired landlord.

The tenant is great: pays on time, takes care of his own maintenance, also agreed to pay higher rents to match market prices, etc. 

He's a smoker though and the whole place reeks and has stains from his 20+ years living there.

I would like to keep him in the property for as long as possible. I want to refinance the house with a long-term lender and need a good appraisal. To get a higher appraisal amount, I would like to repaint the house in order to make the house cleaner.

Is there a solution that would fix the smoke/nicotine stained walls and keep it from being stained again? Or should I just paint over it with a cheaper paint for the appraisal and then get a more permanent solution when he moves out?

What kind of paint would solve the smoke and nicotine smell? I've heard of a stain-blocking latex paint. Can anyone speak to this? 

Many thanks!

What type of terms are you looking for?

I'll assume long-term loans (since I am planning on doing something similar). I have a few options that I am planning on utililzing:

- Conventional financing: If you have the properties under your personal name, this is easier to do. If it's under a legal entity, you probably can't do this option (as far as I know). Depends on how much equity you have and that will determine how much they'll lend. It'll also be much more stringent and you'll have more hoops to jump through but your interest rate will probably be lower and you can get a 20-30 year note pretty easily.

- Private lending: Find an individual looking for long term gains and make them a solid offer on what you're looking for. The terms will be whatever you both can agree to and it'll be easier in terms of qualifying but you'll have to do all your own paperwork. Consult a real estate attorney for all the legal dox you will need.

- Portfolio lending: If you have your properties under an LLC or other legal entity, this is probably the way to go. There are some brokers and lenders who do porfolio lending. This will be based on the asset and not so much the borrower (as compared to conventional). Many banks will do portfolio lending (especially the smaller ones) or you can find a full-service brokerage to help. I've heard good things about Noble Mortgage but I haven't used them yet so please do you due diligence on working with them.

I plan to go the portfolio lending path as I have my properties under a legal entity and plan to keep them that way for the time being.