All Forum Posts by: Michael Stutelberg

Thanks everyone for their thoughts on laminate/vinyl flooring. That is my plan moving forward with the property I have under contract. There is a lot of carpet from the 70's that needs to be removed and the vinyl flooring will make the property that much nicer.

@Bob Paxson thanks for the reply. What type of hard surface do you prefer to best tenant proof the rental? I’ve heard laminate, but curious on tile too?

What type of flooring (carpet vs laminate) do you install in bedrooms and living areas for new purchase to prepare for renters? What is your ideal way for improving the bathroom (vanities, toilet, paint)? Preference on brands that are robust and brands that don’t last?

Thoughts on this purchase, have I missed anything? This would be my first multifamily and going through due diligence.

Needs new appliances, paint  throughout, carpet and some new flooring. 
Would need to do RUBS for utilities. 

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Yes, I continually find undervalued homes on Zillow/MLS. These are primarily homes that haven't sold for a year+, distressed seller or foreclosures. Then I contact a realtor to make an offer or to view the house.

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Congratulations on the great deal!

Talk to your CPA, it may be different for everyone (I am not in California). For now I plan on not taking the cash out of one property because I may use it for additional maintenance or to just accumulate. That may change after the next conversation with my CPA.

What I have are separate bank accounts for the tenants rent payment and my reserves. My tenant direct deposits into the checking account each month and I transfer out the cost of mortgage/insurance/taxes. I leave the maintenance, vacancy, capex and cashflow in the checking account. I will reimburse myself for any maintenance and capex issues using the money in the rental account. Talk to your CPA for withdrawing the cashflow and maintenance/capex.

Since utilities are not split, make sure utilities are in your name. when time to renew leases, talk to utility companies and get an average from past year. Subdivide/average for your tenants and add a utilities fee with lower increase of rent with renewal. It may still cost you if tenants increase usage, but you can have a clause in lease that anything above the utility ‘fee’ you can bill them for. If they use less utilities than the fee covers you make a profit.