BiggerPockets

You might get more rent.

Just like flipping a property you have to recondition and get rent ready based on the type of tenant that will live in the property.

If you are in an area with higher turnover than you don't want to put really nice stuff in there.Remember to not make it about your personal standards.What you deem acceptable and what other consider a nice place to live might be 2 different things.

I make things functional but do not over improve.

I can tell you that doing basic electrical and plumbing yourself will save you a ton.Stay away from contractors that make it seem like you are getting a good price and feel like you are getting over on them.

I find the professional contractors give you a bid and if they win the work they don't complain about the low price they put forward they just get it done the right way.

2 prong outlets mean the wire isn't grounded... Putting 3 prong outlets won't automatically ground the wire either... Youd have to rewire or protect the circuits with GFIs. in my experience tenants won't notice and pay more for rewire, new mechanicals, or a new subfloor. I think these are important items to take care of, but will go unnoticed. Newer appliances, new floors and paint are what keeps my apartments above market rate.

Thanks guys.

Joel, I am doing the work myself. I do loose money on not getting the house rented due to only being able to work on the weekends, but I am still saving significantly more in labor than loosing in rent. I knew about rent loss rehab before starting and prepared for it as an expense. The area looks like fairly high turn over, but I am hoping to keep my tenants longer by screening and training and providing a quality dwelling. Nothing but basic fixtures. Nothing decorative. Nothing but the cheapest unless the cheapest is too flimsy. The one thing I spent a little extra on is the luxury vinyl tile. It cost about twice the cheap vinyl tile, but I am hoping it will last longer and it still wasn't much - $243 for the kitchen and bath, I do the install. Mainly I don't want tenants feeling like something needs to be added that requires them to put a hole of any size in anything. Except pictures.

Jason S. The HVAC is dirt cheap at 3K considering its a total install (no existing components or duct work). I do save some money by installing the 220 line to the outside compressor and the gas line to the furnace (already done). The only cheaper option is window units all around and that's still about 1500 to get them in each room with heat. But than I heard window units have short lifespans and are more expensive to operate. My philosophy (hope)is that I can raise rents easier if the tenant isn't paying an arm and a leg for utilities. It could be cheaper in other regions, but this is in Fort Worth and I doubt it. The $1,000 electric service upgrade will include a new 125 or 200 amp breaker box (depending on if I decide to go electric or not with the new appliances)and breakers, a new meter box, a new riser pipe and leads and the electrician to pull the permits and do all the work (side job for my workplace's admin's husband). It would normally cost 1.5 to 2 times that. The existing service is circa 1953 and has a Federal breaker box (fire hazard). I could do the work myself but cannot get around the permits as the power needs to be shut off at the street to accomplish the work. So since the electrician will charge me for the permits anyways, its cheap to pay him to do the labor while I work on something else (that doesn't require electricity). I'll probably just put gas dryer stackable since the gas line exists. Although part of the line (copper) needs to be replaced. Gas is a lot cheaper than electric and the cost AND HASSLE of running the dedicated electric offsets the savings on the electric appliance.

Bryan A. I know that putting 3 prong receptacles won't create a ground. But, If the plugs are not three prong, then the tenants will be plugging three prong adapters and such and creating more hazard in my thoughts. The ground wire connects to the same bar in the breaker box as does the neutral, so the system is still grounded. The third prong is like a dummy hole. The new plugs and switches I see as part of an inexpensive way to get things just a little more "right" during the painting process for not too much money. Mainly I don't like the idea of miscellaneous adapters the tenant might pick up at the dollar store. But I believe you that the tenants wouldn't really notice. I may reconsider by the time I get around to it and just put another coat of paint over those bad boys!

Steve, That's a good point. You know, I bough this house knowing it would rent for at LEAST 450 to 550/month and even that would be profitable. But the longer I work on it and talk to people from around the area, the more value there appears to be waiting to be tapped. I will definitely drop the price down if I don't get it leased within a month after finishing the rehab. Then I'll creep the rent up as they will come to appreciate the higher quality that I provide. Hopefully!

Well, I feel better as nobody has responded that I am crazy. Thanks a lot for your input. This site is great!

Things I didn't account for on my last rehab - Misc expenditures like you said.

Anything from door hardware, to extra brushes, to a new damn hose on my pressure washer.

all in all, i still came out ahead. I, like you, did most of the work on weekends. after about 2 months, i was done - as in - hiring out the rest :)

came in about $2,000 over budget due to the fact I decided to replace cabinets which I wasn't originally going to do :)

I think everything you are doing is great and impressive - especially as a side job. I was only chiming in because I thought you could save on the A/C. I just had a 2.5ton AC put in, with permits (I pulled) so it is the new energy rated etc, with ducts etc, the whole nine yards, $1500. Maybe yours is bigger, maybe you house is bigger, there are many factors, maybe your is top of roof and mine is inside attic, I have no idea - just a number to compare. Not saying you can get the same deal because I have a long term relationship with this guy, but you may be able to shave $500+ off - but then again I do no know your system. Maybe yours is huge and my small system you could get for $1,000. Who knows.

I am not certain on this - maybe you are, and I will admit to not being an electrician. But I think that there is a reason for 3 prongs over the 2 prongs and I think you are exposing yourself to a lot of liability by doing this.

Really, I would rethink this and either do it right or not at all. Way, way too much liability - at least that is my gut feeling. You are taking the time to do this great project and you are doing a great job at it - I would rethink this or at least verify it.

I know that putting 3 prong receptacles won't create a ground. But, If the plugs are not three prong, then the tenants will be plugging three prong adapters and such and creating more hazard in my thoughts. The ground wire connects to the same bar in the breaker box as does the neutral, so the system is still grounded. The third prong is like a dummy hole.

And that's why you should hire a licensed electrician to do electrical work. Wow!

Either do this right or leave it alone. Current code requires three prong outlets with proper grounds. That is NOT!!! a dummy hole, its an alternative path to ground when a failure break the neutral path. An alternative to the current flowing through a PERSON. Current code, which is what applies as soon as you start messing around with the wiring, also ground fault interrupters in outlets in the kitchen and bath and arc fault interrupters in the outlets in the bedrooms.

You're taking a bad, but acceptable situation (acceptable because the shortcomings are obvious) and turning it into a truly hazardous one. Do it right or hire an electrician to do it right or leave it alone.

Johm,
You posted as I was writing. If I am exposing myself to more than existing liability, than I need to carefully consider my plans. I need to also check to see if I upgrade the service, will I need to rewire the house? I will consult with my electrician with what code and legal requirements are and adhere to them. I have worked as an electician's helper in the past, however, and I know the ground follows the same path throughout the circuit and connects to the same bar in the breaker box as does the neutral wire. The third prong is not necessarily a "dummy hole", but it is a redundancy. It would not create more actual danger, but apparently more liablity of existing danger. If you use an adapter you are doing the same thing, except the "dummy hole" protrudes from the wall in the adapter rather than sitting flush in the plug, also connected to nothing (in my case). I do take mechanical systems seriously and am not operating by the seat of my pants. I will definitely look into the code requirements as I am now concerned about it. Thank you for sharing your alarm with me. This is another example of how this website has helped me!

I view some of this stuff like insurance. You pay to move the risk or liability off yourself. Other than switching out like for like, or very simple stuff that won't get you in trouble, I'd hire a licensed electrician.

Thanks Jeff. No, not too much of a question, but just putting my stuff out there to get feedback on anything that sticks out to anybody and just share my experience with my current deal as well. Already I have recieved a lot of feedback on some electical stuff that I hadn't really thought about until now.

The main thing I am taking away from everybody so far is that the repairs I am doing now are not unreasonalble for future considerations (which relieves some anxiety) and that I need to consult with my electrician before doing any modifications to the systmen - regardless of good intentions! Jon and some others laid that down, for sure.