BiggerPockets

Business Card Design

Monday, November 08

I have had people ask what my business card looks like.  I just had to order more and thought I would share my design.

 I order from fedex office in the heavy stock.

This is the card I give to tenants and at showings.

Tenant & Building Security

Monday, November 08

I don’t own any buildings in rough areas, but security is still important.  Today, I am going to talk about a few of the products we use at the Vandelay Group LLC for building security.  I will discuss “THE THREE Ls”: Lighting, Locks, and Landscaping.  Just a reminder that all of my SKUs are from Home Depot.  You can buy similar products at most home improvement stores.

244-791 Zenith 240° Bronze Dual Bright Motion Light (This product is used on garages, the sides of buildings/houses, and to illuminate backyards.)

446-302 Philips Energy Saver CFL outdoor flood lights (Technology has gotten better and CFLs are no a viable light no matter what climate you are in.)

196-629 Commercial Electric Twin Pack Exterior Porch Lights (I Love CE and this twin pack is decent quality for a good looking product.)

847-906 Screw in Photo Control (This photo control is CFL compatible and allows you to finally use energy efficient bulbs in your porch lights!)

Light is the biggest deterrent for thieves and criminals.  Depending on the quality and type of rental, you want to strike a balance between not enough lighting and having the place look like a BP gas station.  The worse the neighborhood is, the more lighting you should employ.

Who pays the energy bills at your rentals?  My portfolio is composed of mostly four and five unit buildings.  Each of these buildings has a public meter where I pay for the hallway and exterior lighting.  While all of these lights are great for safety, they also can cut into your profit.  Make sure you have the most energy efficient bulbs and fixtures.  This will reduce your energy cost and maintenance time (most high efficiency bulbs last longer).

If there is hallway lighting in your building, I recommend you have it all wired to a photo cell so your lighting is activated by outside conditions.  If you use light switches, tenants will leave them on.  If it is too expensive or not possible to run a photo cell, the next best option is to use a timer switch.  I use these in all of my laundry rooms.  Stay away from motion sensors because they do not work well with CFL bulbs.

827-621 32”X80” Steel 6 Panel Door (This is a common size.  Find the right door for your opening.  I use these doors on both the entry doors and the unit door.)

667-219 Hole Filler Plate (used to fill deadbolt hole when installing a common door in a multi-family)

567-418 Kwikset Single Cylinder Dead Bolt (Good basic lock.  Double cylinder locks are illegal in many municipalities)

460-395 Kwikset Keyed Entry Lock (Used for the common door lock)

292-476 Schlage Door Chain Guard (Use this if you are keeping a wood entry door to the unit)

Locks and doors are important because using low quality components jeopardizes security and costs you money in maintenance.  These entry level Kwiksets are the lowest grade of lock I would use.  If you are looking for something of higher quality, go with the brand US LOCK.  These are four times as expensive but many feel it is worth it.

Even if you are just buying your first rental, do yourself a favor, MASTER KEY YOUR LOCKS!  I originally did not do this.  For the first year of my business I carried around a huge box full of keys.  This is not cool.  A one key fits all scenario is much better.  You can also get your padlocks master keyed.  All of this saves time and makes you’re a more efficient property manager.

The best advice I can give is about lockouts.  You should have a clause in your rental agreement about a lockout fee.  It does make me money, but it always sucks to have to go down at odd hours to unlock doors.  Solve this by only using a deadbolt and just use a pasage knob for the bottom.  This way your tenant will not be able to twist the lock and close the door leaving their keys inside the unit.

 LANDSCAPING

 The way your property is landscaped can also help protect your property and tenants.  Since climates vary, you should talk to your local garden center.  This article should help you with the basics. http://www.ehow.com/how_2208471_landscape-home-security.html

Build A Bathroom Like The Vandelay Group

Monday, October 25

I hope you had a chance to check out my budget rental kitchen post.  Tonight, I would like to share my material list and tips for renovating your rental bathrooms.  I know lots of you guys are buying REOs to hold.  Most of these need new bathrooms!  Do it right the first time.  The following is a list of the materials we use.  Again, these SKUs are from Home Depot.  Some of the electrical and plumbing supplies might be available at Menards or a local supply house for less, depending upon your buying tier.

 Rental Bathroom Picklist 

Tile

180-864 ¼” Hardi-Backer (Floor)

683-256 ½” Hardi-Backer (Bath Surround Walls)

717-202 Backer-on Green Screws

399-775 White Versabond Thin-set Mortar (Floor)

610-062 ACRYLPRO Ceramic Tile Adhesive (Walls)

503-528 Snow White Non-sanded Grout

257-140 3/16” Tile Spacers (Floor)

953-185 Schluter Tile Edge/Transition (Floor)

605-401 Fiba-Tape Fiber cement seam tape

469-368 6x8 Snow White Field Tile (Self-Spacing)

792-470 6” Cap Tile (Use along edges)

942-324 GE II 1HR Silicone Caulk (Because I always seem to be caulking as they move in)

375-631 Grout Sponge (Great for grout removal)

Use your favorite 12x12 floor tile in all of your kitchens and bathrooms.  I use my porcelain Florida Tile.  If you want something faster or less expensive than the 6x8 tiles you can use 12x12 floor tiles on the wall.  Use 1/8” spacers and a ¼” square notch trowel.   Since they do not make cap or bull nose tiles in my 12x12 you can use a schluter strip vertically on the wall to provide a clean finished edge.  Use the same color grout as you do for the floor tiles.  You want to mix a 50/50 ratio of sanded to non sanded grout when grouting 12x12s on the wall.  You would substitute grout colored non sanded caulk for the white caulk I use with the 6x8s.

Tile Tips:

1. For your 6x8 Wall Tiles you should be using a V-notch trowel
2. The ACRYLPRO comes premixed (more expensive) but easier to use
3. Again ½” Hardi-backer for the floors if they are bad.
4. For the backer board corner seams on the surround use an inside corner drywall tool to get a nice edge.
5. Always run backer board over the lip of the tub.  To avoid the bow at the bottom use drywall shims behind the Hardi-backer.
6. Tiles have arrows on them.  Make sure they are orientated the same direction for uniform lines and best result.
7. I tile all the way to the ceiling.  The shower looks bigger and there is less chance for water damage when your tenants decide to see how high they can splash the water on the wall.

692-037 (RH) 692-036 (LH) Lasco Fiberglass Tub

217-251 Glacier Bay Chrome 4” Center Faucet

284-100 Glacier Bay 24” White Vanity or 377-151 Glacier Bay Pedestal Sink

550-879 PEX Toilet Supply Line

124-145 Kwik Seal Clear Adhesive Caulk (For Vanity Top)

744-549 PEX Faucet Supply Line

170-972 ¼ Turn Compression Angle Stops

708-097 P-Trap

708-208 ½” Escutcheon

723-810 Sterling Stinson Elongated Bowl Toilet (Or Substitute the more expensive American Standard Champion 4 Round Bowl for better flush)

242-911 Moen Adler Chrome Tub/Shower Fixture (For galvanized or female threaded copper.  Use chrome handle trim for a more sophisticated look)

Plumbing Tips:

1. Hire a pro if you don’t know what you are doing or if required by local code.
2. Glacier Bay faucets are great because they have a life-time in store warranty if you keep the box.  If you choose not to buy a GB buy a Moen because they are very easy to work on and plumbers always have the universal cartridge on their truck.
3. The lower income your tenants the better flush you want on your toilet!
4. Braided SS supply lines are better if you are not familiar with PEX as they are easier.
5. When using PEX supply lines you must use the plastic feral that comes with the supply line and not the metal one that comes with the angle stop (don’t ask how I know this).
6. Liquid Teflon is your friend (we use swan seal)
7. Don’t be cheap.  Buy ¼ turn angle stops!
8. The Floodsafe braided supply lines are a waste of money and a headache.
9. Clear caulk the top of your shower escutcheon and tub filler spout.
10. Pedestal sinks might be a better option for section 8 because it has no doors to break off.
11. Use a thicker wax ring or a toilet flange extension if the tile is too far above the flange to make a good seal.

701-280 Futura Chrome 4-Piece Bath Hardware Kit

416-986 Nutone 70 CMF Bath Fan/Light

232-275 White Medicine Cabinet

582-415 Leviton GFCI 15 AMP Outlet (Cheaper at Menards)

877-474 Commercial Electric 3 Light Over-vanity Light (Nickel)

Electrical Tips:

1. Do not cheap out on the bath fan.  The higher the CMF rate the better.
2. Wire the Fan and the vanity lights to come on at the same time so your tenants remember that your bathroom is not a steam room.
3. If you are using cans in the bathroom make sure the trims are rated for wet areas.
4. A can light centered above the toilet is a nice touch in a fancier rental.
5. Make sure you are using a GFCI near water.
6. The bath towel bar should be mounted at breast height to tenants are not pulling down on it when they grab their towel.
7. When mounting the toilet paper roll, sit on the toilet.  You would be surprised how much it helps.

Final Tips:

1. If you need to replace any drywall use USG Moldtough green board (982-577).
2. As always, add mildicide to your paint! It is $5 insurance.
3. Better materials usually last longer.  Ask yourself what your strategy is with your rental or flip.
4. Caulk is your friend in the bathroom.
5. Neo angle showers almost always leak.  Use a tub when you can.
6. Always supply your tenants with a shower rod (a cheap curtain would also be nice).
7. I like tile surrounds.  It is sometimes faster and less expensive to use fiberglass.

Let me know if these pick lists help, if they don’t please tell me because they take a substantial amount to time to write.  If you have any questions or topics you would like me to cover, please write to me.  I am thinking about talking about whole house lighting, security and locks, or doors next.

Budget Rental Kitchen

Friday, October 22

As many of you know my focus is primarily high end rentals and student housing, but I recently redid a kitchen in a unit for a tenant who has been a resident for 25 years.  I did not want to spend a lot of money so I used the following materials.  I thought this list would be good for the BP community because many of you have Section 8 and inexpensive rentals that this would work great for.  I shop at Home Depot so these SKUs will only work there.  Many of these materials and tips will work for a nicer rental or flip.  All you would have to do it upgrade the cabinets and fixtures and add and dishwasher and disposal.

 Budget Kitchen Pick List  

Flooring 

180-864 ¼” Hardi-Backer

717-202 Backer-on Green Screws

399-775 White Versabond Thin-set Mortar

729-124 Tobacco Grout (use Linen in a nicer rental)

257-140 3/16” Tile Spacers

953-185 Schluter Tile Edge/Transition

605-401 Fiba-Tape Fiber cement seam tape

I use Porcelain tile in my rentals purchased by the pallet from Lexco Tile & Stone in West Allis, WI.  I buy the Savannah 12x12 in Beige by FLORIDA TILE for $1.19/ sq. ft.  I do not recommend peal and stick tile or sheet vinyl unless you have NO TIME.  If you have less time use a speed set mortar.  My peers who buy tile form HD buy the .57/sq. ft. ceramic tile in the 12x12 Walton pattern.

Flooring Tips:

1. Use a ¼” Square notch trowel on the subfloor before laying Hardibacker
2. Use a ¼” x 3/8” Square notch trowel to lay tile
3. The white Versabond is a few dollars more but is stronger and will not show through light colored tile or natural stone
4. Porcelain tile is much stronger than ceramic and if you can afford it, buy it!
5. Use ½” Hardibacker (202-225) if you can or if your subfloor is really bad
6. I like tile in kitchens but if the hardwoods are good they are also a good option.

369-062 Unfinished 60” Sink base

370-264 6’ Tumbled Roca Formica Counter

942-324 GE II 1HR Silicone Caulk (because I always seem to be caulking as they move in)

Cabinetry Tips:

1.      Unfinished cabinets from HD are low quality and I would not normally use them

2.      Adding three upper cabinets or shelving makes the kitchen look much better

3.      Buying prefab countertops from Lowe’s saves time by not having to iron on edges and cut sink hole.

4.      When doing high-end rentals, flips, and condos, I use Thomasville cabinets in Mansfield Oak Chocolate color.  Have the sink base made of full plywood as it takes the most abuse.

5.      In-stock cabinets at HD often go on sale.  Ask in Kitchens and Baths when the next 20% off sale will be. 

Plumbing 

320-643 Neptune Double Sink (use single bowl if adding a dishwasher)

782-644 Sink Hole Cover (used when not using a faucet with sprayer or dishwasher)

737-542 Center Waste Outlet

708-097 P-Trap

535-072 Sink Strainer (You will need two.  Better to buy Proflo from Fergusson)

817-572 Glacier Bay 3-Hole Chrome Faucet

124-145 Clear Adhesive Caulk (can sub plumber’s putty)

317-853 ½” Copper Escutcheons

170-972 ½” ¼-Turn Compression Angle Stops (might need thread on if you have galvanized plumbing)

744-549 30” PEX Supply Lines W/Plastic Feral

Plumbing Tips:

1. Hire a pro if you don’t know what you are doing or if required by local code.
2. Glacier Bay faucets are great because they have a life-time in store warranty if you keep the box.  If you choose not to buy a GB buy a Moen because they are very easy to work on and plumbers always have the universal cartridge on their truck.
3. In nicer rentals we use a Badger 1 1/4HP garbage disposal (WARNING!!! these can cause many maintenance calls )
4. Braided SS supply lines are better if you are not familiar with PEX as they are easier
5. When using PEX supply lines you must use the plastic feral that comes with the supply line and not the metal one that comes with the angle stop (don’t ask how I know this).
6. Liquid Teflon is your friend (we use swan seal)
7. Don’t be cheap.  Buy ¼ turn angle stops!
8. Never buy faucets with a sprayer.
9. Never install icemaker lines to refrigerator in a rental.
10. The smaller the gauge of the steel of the sink the better quality and more wear resistant it is.  I don’t use the sink above normally as it is not strong enough.

701-704 13” Commercial Electric Dome Twin-Pack (save the second for your next job)

866-616 Nutone Basic White Range Hood

Electrical Tips

1. YOU NEED TO PUT IN A HOOD SO THE BUILDING DOES NOT SMELL LIKE GREASE!
2. Make sure outlets that need to be GFI protected are.
3. Can lights look great if you are redoing the ceiling and don’t cost much more than domes.
4. We put in a GE 24” xenon or florescent under cabinet light above sink in all units.
5. Replace all outlets and switches for a clean look and safety.

Final Tips:

1. If you need to replace any drywall use USG Moldtough green board.
2. As always, add mildicide to your paint! Its $5 insurance.
3. Better materials usually last longer.  Ask yourself what your strategy is with your rental or flip.
4. My best appliance prices come from Lowes and are Whirlpool.
5. On lower income rentals find appliances used on craigslist.org.
6. Sell your old working appliances or find a local scrapper to take them away for free.
7. If you have a pickup or trailer and time scrap your appliances yourself!

Hope this helps.  Stay tuned for my bathroom pick-list and tips!

My First Blog Post

Friday, October 22

Things have been slow at the office since rental season has come to a close so I thought I would try creating a blog.  It seems to be a big thing these days.  Please excuse me if I am blogtarded.  I hope anyone who chooses to read my blog will be patient with me as I learn.

I should start by introducing myself.  For those who do not know me, my name is Jeff Koenig and my company is Vandelay Group LLC.  I am in my mid 20’s and have chosen real estate as my profession.  After years in the food service industry, I have been able to make real estate my full-time job.  A few years ago, as the market showed signs of starting to tumble, I decided to start buying rentals on the Eastside of Milwakuee, Wisconsin.  I worked briefly for others in real estate during college and never worked in construction.  I am a self-taught real estate investor and have had to learn construction because of all of the REOs I have been buying.  I benefit from having a great unpaid CFO and general counsel, my mom, a tax lawyer and corporate consultant.

The Eastside of Milwaukee, my investment area, is composed to zip codes 53202, 53211, and some of 53212.  The Upper Eastside (53211 and 53212) is centered around the University of Wisconsin, Milwaukee.  The Lower Eastside (53202) revolves around historic Brady St. and runs along Lake Michigan to downtown Milwaukee.

If my blog turns out to be something people want to read, I would like to share my ideas in the following categories: what I have learned about property management, my daily activities, reviews of books and articles that interest me, construction and rehab tips, reviews of vendors, and details of my future deals.