All Forum Posts by: Pete Perez

@Brian Britton

I don't have any insight to contribute here, but thanks for posting this. I'd never heard of a tenant requesting this. I don't know why you'd have to compensate them at all. 

Yeah I am definitely aware it doesn't meet the 1% rule. I think $1550 is right where fair market rent is in this area for a 2bed 1bath rental with a backyard. The owner of the duplex up the street recently remodeled and rented his for $1750! Obviously finish and level of rehab factors into what you can charge, but from what I've seen online in this area its pretty competitive price. 

I also wanted to share some progress photos! The link is to dropbox with photos and a video update as well Click Here: Flooring Photo and Video

We found a flooring company to refinish the hardwoods that were under the carpet. That was a really big blessing! I don't have a great before/after photo because I never for great photos of the carpet before I ripped it out. But here is a preview image of the floors now.

Hello BP!

I am starting this post and would like to update it periodically. My wife and I purchased our first property back in July of this year. We are calling it Dirty Harry, because its on a street called Harrington and its dirty haha. The property is a duplex in Renton WA and we are house hacking it. Its a duplex from the 1940s and at the time of purchase was being rented for $900 each side. I am sharing a link to provide photos of what it looked like when we bought and would like to share photos of the progression of the property.    

Photos:

Inspection Day Photos

Prior to this we were living in an apartment and were paying $1540 per month + utilities and I got really tired of paying rent lol. This property represents a bike with training wheels in our eyes. Literally every improvement we make will be the first time ever doing it so its an exciting time! We are going to make plenty of mistakes, but thats how we learn and grow. Our goal is to make REI another revenue stream for us (hopefully a very large one) and this is our introduction to doing just that. The plan with this property is to rehab it over the next year and turn it into a cash flow positive asset.

The Numbers (while we live in it):

Purchased Price: $365k w/ 5% down payment on a conventional program

ARV: $440k-$460k

PITI: $2018

Rent: $900 (currently) but will increase to $1200 as of the new year

That offsets our mortgage to a little over $800, which is way better than the rent we were paying previously. 

The Numbers (after both sides are rehabbed and rented out):

Rental income: $1550 each side

Net Operating Income: Rents-PITI = ($3100-$2018) = $1018 (I know this isn't cash flow btw)

Please comment, ask questions, critique my way of viewing the property, etc. I am always happy to talk about this stuff! And The advise of people that have gone before me is priceless to me so thanks in advance! 

@Ryan Substad

That seems like a lot of work for $37k. Great job! I am wondering how you squeezed all that in the budget? Are you a wizard?

Hi BP!

My wife and I just closed on our first duplex last week. We will be living in one unit and renting the other. We are first time owners and landlords, so all of this is a new experience for us. Does anyone know or have experience serving notice to vacates to month-to-month tenants? I spent this afternoon reading differing sources of information. I have heard anywhere from 20-60 days notice? Just trying to fgind out what the right thing to do here is. Any help is greatly appreciated!

Hi BP,

Buying a duplex and couldn't buy it. I helped my dad refi his house last year. Parents were both out of work and came close to losing it. They are both back to work now, but it hasn't been 12 months, so I can't buy with traditional financing. 

The seller is an old guy who is dealing with really bad health conditions. He has a duplex that appraised at $360k and he owns it free and clear. He needs money now to help pay medical bills. Is there any way to structure seller financing so he gets a chunk of money at closing? Say $70k? and he can continue to collect payments from us? 

I am really not sure how that would work. Any help is greatly appreciated. 

 Andrew how long would that take you typically? 

 Yup! I am doing that this week. Planning on getting 3 or more, but just don't know ballpark what it should cost. 

Going through inspection on a duplex and need to replace both electrical service panels. They are 60A Zinsco panels and need to upgrade them to 100A. I will be getting quotes this week, but does anyone have a ballpark on what they paid to have this done?

Labor in my area has gotten expensive. I am assuming ~$65 an hour. I just don't know how long it should take, and how much the material should cost?

Any help? Thanks!