All Forum Posts by: Konrad R.

Thanks Ryan

I plan on renting out the other side and not occupying it. My purchase numbers were based on 850 a month for each side. I keep thinking that the extra rent money will help pay off the renovation costs sooner. I'm going to have to renovate it at some point. On the other hand, the useful life/wear and tear will start sooner as well. It is hard to find properties in my area that the 2 percent rule would apply to. Most properties I've seen seem to be more like the rent is 1 percent of the purchase price. I could try to apply the percent rules based on rent increase and the renovation costs. I would like to get more concrete analysis, however. The area seems to be in high demand. The other properties that go for rent are filled quickly (less than a week). I'm not sure how good the quality of tenants are.

I purchased my first rental property (duplex) not too long ago. The previous owner was charging very low rent on one side. The other side was vacant (cash for keys). I spent a substantial amount of money renovating the exterior and the vacant side. I think I can get $950 to 1K a month rent. The other side is not renovated, but they are only paying $600 a month. I already purchased the central air equipment for their side, but I haven't installed it yet. They agreed to a small rental increase if I install the central air now.  They've lived there for several years and appear to be good tenants. They already knew that a rent increase was coming. I'm open to a renewal and holding off the renovation on that side.

It looks like I can get 750 to 800 (possibly 850) for that side with central air without renovating it. It looks like it will be around 12k to renovate that side including the central air. They are asking for only a 100 rent increase. 

I'm thinking about raising the rent to 750-800 without renovation. The renovation would bring in an extra 150 to 250 a month rent. There will be a vacancy period of 1 to 2 months. Therefore, the 1500 to 1600 would eat into any rental increase attributed to the renovation.

What are your thoughts on this? Is there anything I'm missing?

I feel bad that I'm making such a large rent increase, but I've already spent a lot on the place. 

Also, what is the appropriate amount of time to give notice of a substantial rent increase. They are complaining that I haven't told them the new rate and there is still 5 months left on the lease.

I'm just starting out in house flipping/ rental properties. The 1031 is from a long term land investment.

I forgot to mention this is for a rental property. I'm looking for ease of maintenance and durability.

What are your opinions on tub surround direct to stud? I'm not referring to the adhesive tub surrounds. I'm referring to the fiberglass surrounds that attach directly to the studs.

I gutted a bathroom, and I'm debating if I should go back to tile. The direct to stud surrounds seem to get decent reviews from the box stores.

The policy I was quoted has a 10,000 limit for backup or discharge of water. I'm concerned about a pipe bursting and ruining the floors, drywall, and kitchen cabinets. Do you think 10K is sufficient? What is the normal coverage for this? This is for a duplex (both sides 750sqft).

i just need a lot of trash and debris removed. It is just general labor picking up things and putting them in a dumpster. I am planning on bidding it out for the job and not hourly.

Is this risky as far as liability exposure? 

I'm interested in purchasing a distressed property near one of the properties I purchased. I looked up the tax parcel information. It isn't available online. For some reason, it completely skips over that address. I called the tax appraiser office, and she didn't know why either. She said it could be because it is owned by a judge or police officer, and he/she elected to have the information be confidential. She wasn't sure, however. What are some reasons why the information would be not publicly available? I could see if they blocked the name and address, but they don't have any information on it. I am unable to even click on it from the map. 

What are some other methods to obtaining the owner's information? 

Florida

The seller made a huge mess in the yard after we went into contract. There is now a pile of debris. The unit is also missing some appliances now. If he decides not to rectify the issue, how do we get the seller to escrow funds for the cleanup? The seller seems to be trying to find a way to back out of the deal according the the seller agent. Should I try to escrow funds or just send a bill after the sale? I know I may never collect. I also don't want the guy to back out. Here is what the contract states:

If, prior to Closing, Seller is unable to meet the AS IS Maintenance Requirement as required by Paragraph 11 a sum equal to 125% of estimated costs to meet the AS IS Maintenance Requirement shall be escrowed at Closing. If actual costs to meet the AS IS Maintenance Requirement exceed escrowed amount, Seller shall pay such actual costs. Any unused portion of escrowed amount(s) shall be returned to Seller.

11. PROPERTY MAINTENANCE: Except for ordinary wear and tear and Casualty Loss, Seller shall maintain the Property, including, but not limited to, lawn, shrubbery, and pool, in the condition existing as of Effective Date (“AS IS Maintenance Requirement”).

I'm closing on a property next week. There is a tenant in place. Do I need to get an estoppel letter? Does the seller furnish the letter? I have already received a copy of the lease. There is a discrepancy with the security deposit. The written lease shows zero security deposit, but I was informed by the tenant that she put a $500 security deposit with the original lease. I have the second year of the lease, so the $500 may be listed for the first year and not transferred over (tenant has lived there two years).