All Forum Posts by: Paul Wurster

We've used a mix of laminate, tile, and adhesive vinyl squares in our rentals and rehabs over the last few years.

Concrete, tile, and hardwood are all relatively permanent products.  They can be repaired and redone, but they should last 25+ years.  At the other end, you have carpet, vinyl, and laminate.  They all have varying lifespans dependent on usage and the quality of installation.  We settled into laminates that were between a $1-2/sq ft because they should last longer than carpet, are repairable, and resist stink and staining better than carpet.  However, if we need it done fast, cheap and durable carpet can be bought and installed in a  day.  If time is on your side, I would probably go with laminate.  If the subfloor is crap or if you need to be done in a day or two, carpet.  

We used porcelain tiles in kitchens, bathrooms and entry ways.  It is a pain.  It is dirty, and it takes at least three days to finish.   It should last a long time with little hassle if the installation was good, but it if it wasn't, you could just be inviting more problems down the line.  The stick on tiles are fairly durable and look okay if installed well.  If they start to pull up in the corners though, remove them because they will look ghetto as all get out.  

So to answer your question, I would say give the laminate a try.  It is my go to material for our mid market rentals/ starter homes.  I have not really had a problem.  If hardwoods already exist, by all means, have them refinished.  Don't be afraid to mix and match too.  laminate in the common areas, carpet in the bedrooms, and tile in the bathrooms and possibly kitchen.  

You must do it. You will learn so much. You will be able to tell what is good and bad on the future. You do not have to do the full 1000 sq/ft. Just do a room or two. If it sucks, pay someone to finish and fix your work. This is useful education to have. Look for small projects to try, and you will gain some confidence when working with contractors in the future.

When I factor in maintenance and vacancy, I get just over 10% return on your money. If you think the properties are appreciating and rents are going up, this sounds like a good deal.

Welcome. My first investment property was in Bossier.

Of course this doesn't matter unless you get audited, but what if you thought you were paying a company (official receipts with business name) and later found out they were not. Or never found out.  What is it that causes the hammer to drop?

Here is a quick panoramic I took so people could get a sense of the room.  There were another 12-15 people to the other side of me too.  Sorry @Joshua Dorkin for making you look like Quasimoto.  

@Doug Ward What kind of contracting work do you do?  Do you ever go as far south as Montgomery?

Originally posted by @Brandon Pearsons:

Hello, 

I know what you all are saying cash is king, but here is the the equation.

I owe 70k on this particular property at a 5.2% interest rate . . If I pay it off from cash flow from other properties in the next 6-7 years. Then  I will be seeing an extra $500 a month in rent because I have no loan. Does this make sense to do?

 If you are still in the growth phase of your business, then no it does not make much sense to pay it off unless you are past your personal debt tolerance levels.

If you have enough properties to meet your goal, then yes consolidating your wins is probably okay.  

Originally posted by @Brandon Pearsons:

@ Chad Lopes

Do you think its better to use the cash flow for another investment rather than pay down principal? There has got to be a mathematical formula to this...

 While you could always compare the different returns on investments, this is ultimately a matter of knowing what your goals are.  You have to determine what is better for you.  If you are undeterred by that logic, then go with whatever yields the higher return.

Originally posted by @Brandon Pearsons:

What do you guys think about applying all your profit from one year of rental income to the your mortgage with the highest interest rate the following year?

 I'm not a fan of this unless you are completely paying off the mortgage.  If you pay down the balance on a fixed-rate mortgage, you are shortening the note.  However, if you find yourself in a crisis, you won't have the cash to get out of it.  Instead, you should save up the full amount before paying off a mortgage.  This preserves your security and it gives you options to attain further cash flowing properties.  Either way, set a floor on the amount of cash you hold.  You always need that emergency fund.