All Forum Posts by: Robert Godfrey

It depends on a few things:

1) Climate - if below 35 latitude you most likely will want fans

2) Age/Build of the House, i.e. is it going to be a hassle to get a box installed. For example, plaster ceilings on older houses or higher ceilings on newer.

3) Does your competition, i.e. other rentals in the area have them? If yes, then add them.

4) Class of neighborhood. Don't put them in certain class of neighborhoods (unless #1 and/or #3 are true). If you have a rental that is in super high demand then you definitely don't need them because it will rent out regardless.

I'm sure I missed something but that is just off the top of my head.

Quote from @Rikki Wel:

@Robert Godfrey--Did anyone reply to your query about how to find tax preparers on BP? I'm not seeing an obvious way, either, and I'm looking.

Thanks!

Rikki, I ended up just finding an accountant near me with a web search and while he doesn't specialize in RE, he knows the ins and outs well enough for me since I don't have anything crazy going on (like huge apt multiplexes or a large amount of rentals). 

Quote from @William Coet:

Quote from @Riaz Gillani:

Some of the answers above seem to be a little coy ... so in most circumstances - NO. Certainly not conventional loans. Some government issued loans may be. And the current owner of record could read his loan docs or ask their lender to be 100% sure. But conventional or private lenders don't allow payments to transfer from person to another with the exception of some unique circumstances (Death, Divorce, transferring to a family member or when a Living Trust is at large). It doesn't really benefit them (unless the current borrower is at risk of being default).

They instead have a "Due-On-Sale" clause. If title transfers - via purchase, transfer deed or whatever other mode - the mortgage is required to be paid in full. 

Thank you.  What if the title doesn't transfer and the seller keeps the mortgage in their name and the buyer simply makes payments to the seller until the mortgage is paid off?  Once paid off the title could transfer.  

Isn't this the same as seller financing?

Quote from @J Zev J.:

@Robert Godfrey - It's sometimes difficult to find a CPA who both specializes in real estate and is located close to you in Maryland.

There are lots of good CPAs and Enrolled Agents on Bigger Pockets who work remotely and have clients all over the country. You can just reach out to them and determine which one fits your needs the best.

 Is there a way to find CPAs on BP? Not seeing a section for that...

Thanks guys. I'll think about looking for one remote though I like meeting in person.

Hi all, any recommendations for an accountant in Maryland who has worked with real estate rentals out of state? 

Originally posted by @Marian Smith:

@Robert Godfrey Your existing cabinets are cute. Paint them, including the interior. Navy blue is very popular right now and the younger set loves that look. (white interiors). used cabinets look nice but look to be builder grade meaning wood doors but mdf boxes. ok, but not much of a step up. If you buy replacement cabinets you might be better served with rta plywood boxes and a lazy susan in the corner...huge improvement in storage...and drawer bases. If you are handy. You can also just order doors but cabinet door world seems to take 3-4 weeks.

Thanks Marian, I thought about just painting/refinishing the current cabinets but like I was saying in the above post, we are aiming for a high appraisal on the rehab (comps in the area all have 42" tall cabinets, not 30's which I should have mentioned in the OP) which is in a pretty nice area. Also this kitchen is very small, like 8x8 open floor space so I think tenants would love to have that extra vertical shelf space. 

The RTA plywood boxes are probably the best option, thanks I'll tell my guy to look a those. RE: the lazy susan, that is a great idea and I've also been kicking around Magic Corner or Magic Corner II's once we decide on cabinets to buy. Thanks for letting me know about cabinet door world, someone messaged me about them and 3-4 weeks isn't that big of a deal since this rehab will be take 3-4 months to complete (also doing 2 full baths down to studs, adding an extra bedroom w/ closet, knocking out a wall, replacing wood paneling with drywall downstairs, adding a pocket door, building shelves in an open area of one of the baths, landscaping, etc. 

Originally posted by @Jared Garrison:

@Robert Godfrey

Those used cabinets you are proposing look nice (and are an upgrade) but a few things you need to consider...biggest one being you’ll have to rip out that header above the current cabinets to get those 42” tall uppers in there (a lot of drywall work and mess). Your current kitchen appears to have a “blind corner” cabinet...the used cabinets you’re proposing have no corner cabinets.

IMO...for a flip yes I would replace, for a rental I would just get them painted, new hardware and probably just high definition laminate countertops

Jared good point on the header, though my guy agreed to do the entire kitchen including the tile backsplash so no worries there on redoing drywall. Regarding the "blind corner", that's totally true. If this used cabinet set came with corners I'd probably pull the trigger and just sand/repaint them, however I just matched up the measurements of the current cabinets and they are... odd:

Above the fridge: 33" (+3 inches for the frame, so 36) x 15", to the left of that - a 48" (and not 2 24s nailed together, this thing is huge) x 30", blind corner, then 24" x 30", sink, then 21" x 30", above stove is 30" (+3 inches for the frame) width. So not sure how to handle the weird 33"x15" and the 48"x30", just not something I can find at a big box store though I will most likely have to jam a 36" in and put 2x24" together. 

On the bottom from right to left: 18" x 34", 18" x 34", then blind corner, and then under the sink it's wide open to access the pipes... very odd, I guess I could put a 36" under the sink but it would be a huge blind corner. I measured roughly 64" from the left of side of that cabinet all the way to the wall. Then to the left is the dishwasher and then stove to the left of that. 

My point is that finding a used set with this many odd sizes would be challenging anyway and the one I mentioned in the Original Post wouldn't work because it was mainly 21" wall cabinets so the 48" killed that option. I'm still looking at used sets in case they have all of these sizes but most likely not. 

I should have mentioned that while it's not a flip, I'm looking for a high appraisal on comps to pull out more money for the next rental. Also that this is an A / B+ neighborhood in a great school district with zero crime (some residents even leave doors unlocked). So I feel that the upgrade in materials matches the type of renters I'll have. Otherwise yeah, I'd just do paint/floors/reface cabinets/cheap counter and call it a day. My lender is financing the rehab so cost isn't that big of a deal though the longer it takes, the more interest I'll pay and less money we can pull out for the next deal.  

Thanks everyone for your recommendations! Your comments have been helpful...

Hi all, I had a quick question. So we just recently closed on a rental house and for cabinets, I'm thinking of buying a used set (pics attached) since we want to upgrade the current outdated kitchen cabinets from 30" to 42" tall (see first 2 pics). Do you think they're decent quality? I also attached a 2 pics of the current kitchen cabinets that need replacing. Long story short, do you think it would be a decent upgrade for the price - it's 16 of those oak colored cabinets for $1200 (and we would sell whatever's left over). I'm wondering if it's just cheaper to go this route than paying over double if buying new. Also time is of the essence because every month that goes by we are losing 2.5k in rent.

My ultimate goal is we want it to appraise well on the full kitchen renovation and make sure whatever we upgrade to will last for awhile but we don't want to break the bank. Yet I do want to go up a notch in quality because it's going to have nice granite counters and will be rented to military. I think these look pretty decent for the price but don't have a lot of experience in judging how durable this type of cabinet would be compared to say, a new plywood cabinet from Home Depot. Any advice would be greatly appreciated!