All Forum Posts by: Lindsay Kuzara

@Nathan Gesner - Thanks for the tip. Fortunately I don't have a tenant yet so I'll have the opportunity to disclose the future build ahead of time. I'll likely know more on construction timeline near the end of a tenants lease, and at that time I'll disclose actual plans, fence off area, and allow the tenant to choose to renew after full disclosure is provided.

@Juan Serrano - Good to hear! Do ADUs provide a decent return for you? Whats your cost on average?

@Bruce Woodruff thanks for the reply.

If/when construction begins I would absolutely fence off the space and not allow tenant to access. I guess my question is what to do with the space prior to any planning or construction. I want to get a tenant in the home asap and the ADU likely won't happen in the next 8 months.

Hi BP, I have a SFH in Central Oregon that I just remodeled and will put up for rent.

I plan to build an ADU on the property in the future and am wondering the best way to disclose/approach this with a tenant.

Currently the backyard has a deck/patio and grass that spans the entire backside of the home - this space would not be effected by the ADU.

The remaining backyard space to the side of the home is currently dirt and is where I intend to build an ADU. The entire backyard is currently fenced in as one space.

I'm wondering if it's best to allow the tenant to use the entire fenced in space as it is currently and disclose in the lease agreement that owner has the right to prohibit tenant from using the X space at any time during the term of the lease if planning/construction begins. If doing so, I would make sure it is known to all parties what 'X' is referred to with photos, dimensions, and stakes in the yard.

Or, is it best to temporarily split up the yard and not allow tenant to utilize the space that may be used for future development? 

I'm thinking the latter would be the obvious best approach; however I want to avoid putting more money into the property and over-improving if not completely necessary.  

For reference, the home is on a 1/4 acre and the yard space is considered very spacious for where it is located. 

Any thoughts or tips regarding this would be helpful. First time rehabber and soon-to-be landlord here! 

Thanks in advance

@Kevin Gladstone - Curious how you ended up handling the situation? I'm in a similar situation in OR, looking to scrape popcorn ceilings in a 1975 home. OR laws states homeowners of owner-occupant SF residences can perform the work and dispose themselves, but nothing in the law addresses if the property is vacant while the work is being performed (for a flip & rent scenario). 

Taj seems to be on point. I've also been looking for property on the coast and there seems to be a lot of uncertainty and potential hurdles in Lincoln county. I've personally shy'd away from looking further into property there for those reasons. Lincoln county's website has some information on the recent measures that were passed. Tillamook county seems to be much more relaxed on their regulations and welcoming to STR.

@Bonnie Low great advice, thank you. The property is a little north of Bend in Redmond. I've read if removing asbestos, a homeowner may complete the work and dispose themselves IF the property is owner-occupied. In your flipping experience, are you familiar with how this works if the home is vacant, and we are flipping prior to renting? 

Hey John, thanks for your thoughts. I'm with you, I'd like to know if the hazards are there so I can account for costs. But at the same time the sellers likely aren't willing to budge on their price much in this market. 

In your experience, do you go through abatement if the property has asbestos or do you just leave it undisturbed? 

Reno budget includes: all new flooring, kitchen appliances, crawl space insulation, interior paint, window replacement, yard maintenance. IF toxic materials needed to be dealt with, I'm estimating $7k based on a few quotes I've received, and this would push me closer to the breakeven point at the ARV.

With the opportunity to build an ADU, that would bring a much better use to the land. The way I look at it, there's risk with having potential unexpected costs up front with the home but could easily be rewarded by making better use of the property. Tough to gauge what level of risk this is compared to the potential reward. The hardest part is certainly getting started, and even harder is to decide what amount/what type of risk is worth facing on the first deal..

Sharon - thanks for your thoughts. 

I'm tossed on whether or not to get the home tested for asbestos, it seems not everyone does but I'm thinking it's good to know as it could add a significant cost to remove it. Have you done reno work on older homes? Have you ever tested for toxic materials? 

Hey BP! I'm currently under contract on my first investment property and am looking for some pro tips and advice.

Property: distressed 1975 SF in central Oregon, lot is sized to accommodate an ADU. Property needs rehab, most components are original to home. Budgeting $30K to bring it value, will be DIYing most of it, including kitchen, floors, paint, replacing windows, removal of popcorn ceilings.

It's a tough market here, so I'm not necessarily purchasing at a DEAL, but it's fairly priced considering the condition and market. After a $30K rehab, the value will likely be $20-40K above what I'm paying for the property. 

Purchase price: $310K, rehab: $30K, ARV: $360-380K

Im looking for feedback on what I've identified as risk in the current situation:

-since it's pre 1978, lead paint and asbestos may be present. Is it wise to get tested, or just act as if it's there and take all precautions? Ive read mixed things on DIYing an older home, as well as having tenants with these potential hazards. After rehab, the property will not look distressed, and will receive fresh paint, ceiling repair (so when your average person looks at the home, they would assume there is no hazard).

Anyone run into issues with renters because of an older home due to these common potential hazards?

My dilemma is I feel there is a lot of opportunity with this particular home and the lot itself as an ADU can be added (as either long term rental or STR) however am concerned with the potential risks (both cost and tenant facing) with it being a pre 78 home. 

Any thoughts or advice? 

Hey BP! I'm currently under contract on my first investment property and am looking for some pro tips and advice. 

Property: distressed 1975 SF in central Oregon, lot is sized to accommodate an ADU. Property needs rehab, most components are original to home. Budgeting $40K to bring it value, will be DIYing most of it, including kitchen, floors, paint, replacing windows, removal of popcorn ceilings.

It's a tough market here, so I'm not necessarily purchasing at a DEAL, but it's fairly priced considering condition and market. 

Im looking for feedback on what I've identified as risk in the current situation:

-since it's pre 1978, lead paint and asbestos may be present. Is it wise to get tested, or just act as if it's there and take all precautions?  Ive read mixed things on DIYing an older home.. 

-anyone run into issues with renters because of an older home due to these potential hazards? 

My dilemma is I feel there is a lot of opportunity with this particular home and lot as an ADU can be added ( as long term or STR) however am concerned with the potential risks (both cost and tenant facing) with it being a pre 78 home.

Any thoughts or advice? I don't have a broker, I'm representing myself on my first transaction...