All Forum Posts by: Scott L.

Welcome and good luck Josh

No advice?

Ok. 

I close on my first deal in about 20 days.  It works with the 2% rule, the numbers are decent but not amazing.  A duplex with 2 beds and a loft of each side. North of Pittsburgh.

One tenant is moving out next month maybe before i close, maybe right after I'm not sure.  That is fine because that side needs some windows replaced and a few minor fixes, which i will be able to do immediately after close.

My question is the only thing the seller (a recent divorcee, that doesn't want to be a landlord) has provided me, was a copy of lease of tenant moving out, and a letter to long term (10+yr) tenant informing her of a rent increase.  Now that we have finished all negotiations, and inspections etc, what should I request from her?  I was listening the podcast #61 and they said most of the info is BS anyway, but I'd really like to know as much as I can.  

Any advise is appreciated... I'd like to have my agent request as soon as possible.

@Matthew Schroeder

Great learnings there, thank you. The outside has older aluminum siding, and is directly next to the same layout duplex that apparently redid that building with new siding etc recently.  I looks really nice, so i'm behind it there.  But hopefully i can upgrade some interior things to get ahead of any competition.

What is the best bang for my buck in renovations?

Kitchens? Flooring? bathroom?

@Matthew Schroader

Thank you for the info.

How much should i renovate the empty duplex, knowing the occupied is staying the same? And what should i do about rent?  The one moving our was paying 600 the one staying is paying 520?

So I'm closing in on my first deal and have a few questions. By closing in, I mean I close in a month.

It's a duplex that could use some TLC, one tenant has lived there for 10 yrs, not leaving and her side has not been updated in forever, if ever.  The other side was slightly updated a year or so ago. That tenant has been there a yr, has trashed it a bit just being sloppy, she is moving out when I take ownership.

There are some windows at minimum that need replaced on both sides, small roof repair. And some cleaning etc.

Do I just repair and replace the unrented side and wait on the long term tenant side? Hit the one that is open and make it as desirable as possible and not worry bout the other side for a while. Current difference in rent is $100 a month.  

Long term tenant side only bathroom, has a seized up shower head, only take baths I'm guessin, cause there isn't even a shower curtain.  Do I ask her what she wants fixed?

Advise is alway appreciated.

I am new to everything but would love to join and be a part of it all.

Wednesday or Thursday are best for me.  I am also North.

@Barbara Goodman

Wow.  Thank you for the in-depth reply and the confidence.

I agree, I am going to manage the duplex myself, and pay myself the 10% for property manager.

I am thinking that when I close, going in after the messy renter and renovating some things for sure.  There are some need for new windows, some are broken and just using storm windows.  I am wondering if I should bite the bullet and redo the siding on the entire house at the same time, or if I should just wait a few years to do that?  It doesn't "need" it, just would make the outside look a bit more attractive.  It has nice condition white aluminum siding.  The next door neighbor did it to the exact same layout building.  I would imagine from the outside alone they get decent rent.

Inside is in pretty decent shape aside from the need to replace some windows.  maybe I'll just replace the windows now, make the rent and worry about redoing the siding for a few more years down the line once I am actually making some money.

I did get a home warranty as well, so if anything major blows the first year, at least I have an emergency plan, made the seller pay for that as well.

@Jen

Yep thats the spot.  Simple small and close to my home for pop-ins and issues.