Alternate Live In Flip

[Stephanie Knight]

Been thinking about this for a bit and wanted to get additional thoughts on it. 

A live in flip requires moving (which I am not interested in doing), but has an advantage of a slow burn to get the property to what you want. What about a tenant live in flip (TLIF). I am purchasing a property that needs some work but not a ton of it. I intend to get a tenant quickly into the property, and think this is doable (though the time of year is working against me). During the time that I am marketing the property, I will be doing some of the more cosmetic work that I can knock out pretty quick. No problem there. BUT, I don't want to lose out on rent for 2-3 months while I complete the rest of the work which would include: 

1) a new front deck (replacing an older worn structure with a couple of flaws that are long term concerns; but still functional and safe now)-there remains an alternate entrance for tenants to use during this time.

2) bathroom rehabs (2); both small rehabs but ones that today I'm not ready to get into due to limited availability of my time this fall

3) kitchen cabinets and counter, sink rehab

:These are all things that as a standard LIF, would be fairly easy to work around (kitchen being the obvious most intrusive).  For a TLIF, I intend to let the tenant know these are coming and also offer some reduced rent during those times, so as to make it more palatable for them. For instance. One bath at a time; could be knocked out in a day, with a couple day for tile setting, etc. before use. So that wouldn't require a significant reduced rent. The front deck could be a problem for the tenant if they work from home; so maybe some concessions for that few days of work so they can work out of another location due to noise, and the kitchen; that might be a few nights in a hotel for them. 

Has anyone also done this and what has been your experience? I would appreciate your thoughts and amount of concessions you might offer. Rent will be $1850 in the Raleigh, NC market.

[Ricardo R.]

Hey Stephanie,

We’ve managed rentals where owners did exactly what you’re describing—getting tenants in quickly while finishing upgrades in stages—so here’s what we’ve learned works best:

1. Lease Wording & Disclosure

• Put everything in writing upfront so there’s no surprise later.

• In the lease, list:

  • Planned upgrades (deck, bathrooms, kitchen)

  • Approximate timing and duration

  • Any rent credits or hotel reimbursements for major disruptions

This keeps expectations clear and avoids “you promised” disputes later.

2. Concessions Based on Impact

At $1,850/month (~$62/day), here’s what we’ve done in similar situations:

• Bathroom rehab:

  • One bath at a time with at least one always functional → $25–$30/day credit while one is out of service.

• Deck replacement:

  • If it blocks the main entrance or creates loud work-from-home disruption → $20–$25/day for those few days.

• Kitchen rehab:

  • If the whole kitchen is down for several days, we’ve paid for 3–4 nights in a local hotel with kitchenette or given $40–$50/day credit.

Most tenants appreciate fixed daily amounts—it feels fair and avoids negotiating every little inconvenience.

3. Timing & Tenant Type

• In Raleigh, starting work after move-in is fine as long as tenants know before signing.

• Work with flexible tenants—those okay with daytime disruptions or who travel for work handle it best.

4. Logistics That Help

• Schedule bathroom and deck work on weekdays while tenants are at work, not weekends.

• Use one GC or handyman for all projects if possible—less scheduling chaos.

• Give tenants 48-hour notice for all work even if they know it’s coming.

If It Were My Property

1. Get the tenant signed with full disclosure in the lease.

2. Offer small daily credits instead of big rent cuts—easier bookkeeping and feels fair to both sides.

3. Line up all contractors now so timelines don’t drag—tenants hate open-ended projects.

4. I really hope this helps, the best option is always when you can knock it all out ahead of tiem without tenant involvement... it's just easier but if you're set on doing it your way this is how I'd approach it... I hope this helps you, I sent you a DM on BP and hope you can assist.