All Forum Posts by: Jen R.

I wouldn’t want to take that kind of hit each month. Also, I feel like once tenants get used to that as their rent, they’ll come to expect it (for example, they’ll send the same amount even if they forget to pay early one month, then you’ll have to go after them for the $20). So, not really any different in my mind than charging a late fee, except the late fee goes into my pocket instead of out of it each month. 

If you want to offer an incentive, I would much rather offer something like a $50-$100 gift card upon lease renewal, if they’ve paid on time every month for the whole year. I think Mike Butler talks about offering something along those lines in his book, Landlording on Autopilot (an excellent read, by the way).  

 It’s called a Sweepovac and Amazon sells it if you want to look into it! I actually did pitch the idea to a fellow house flipper last year and they installed one and received really good feedback from buyers. But of course, it’s always hard to say if or how much value those kind of features add. I think it’s more about making your home stand out, as you mentioned. 

A few things that I have done:

1. Add one or two nice light fixtures in highly visible areas. They don’t have to be incredibly expensive, but more than just the basic. I’ve done this in dining rooms, stairwells, etc. and have found it can really make the space feel higher end.

2. Personally, whenever I walk into a home that smells like candles or freshly baked goods, I always wonder what they are trying to hide. I’d much rather have the smell of fresh paint or flooring.

3. Fresh flowers always dress up a space, inside and out.

4. Give extra attention to the things people will touch (hardware, faucets, etc.). You can tell when something is cheap vs. well made.

5. Beyond that, I would spend time touring other houses for sale in the area and see what features pop. And also think about your local market and what appeals to buyers there. For example, I live in an area with fairly low utility costs, so I don’t think a Nest thermostat would give me any added value. However, surround sound in a basement rec room might! I’ve also considered installing a built-in vacuum pan in areas that appeal more to families. They are around $150 these days. It really depends on what demographic your home will appeal to.

Good luck!

@Brandon Sturgill

You got me curious and I had to look it up as well! @Corey Vadasz - do you own rentals in the area currently?

@Ismael Jimenez wow; I think your best bet is to dispute the appraisal and show that your building is most comparable to #5. Try to gather pics that show the comparison, and list out all the specs. What adjustments did he make to that comp in particular?

Yes, we’ve done it! However, we specifically chose houses that were habitable and that we could generally update one room at a time. Sure, there are some inconveniences, especially when it comes time to tackle the main living space or the kitchen. The biggest thing was just having to keep a clean worksite, obviously. We did most of the work ourselves, which translated to lots of late nights while kids were sleeping, but after a while you adjust to the new normal. My biggest takeaway was to get the majority of the work done quickly in the first few months so that projects didn’t drag on forever. We also saved the bathrooms for last (if you can stand to keep them as-is for a couple of years), so that they were brand-new when it was time to sell.

How does the appraisal compare to other fourplexes that have sold in the area? What kind of comps did he list?

It’s going to be difficult to find a contractor to walk the property with you before you have it under contract. You could try offering to pay him for his time to do so. Have you done any type of rehab work in the past? If not, see if the wholesaler would entertain a week long inspection contingency so you can get a contractor over there once you have it under contract. Either way, you can be sure that the wholesaler’s rehab estimates are low, so factor that into your initial analysis.

Absolutely. 

You only have to pay interest if you collect a greater security deposit than one month’s rent, and then only on the balance that is greater. Just set your deposit equal to the monthly rent and you don’t have to worry about it.