My new Quad: Help me not break my bank

50 Replies

Hello, Board! I had made another leap of faith and bought Quad of 4 1/1 Apartments. I will use this thread to get some advises from the knowledgable public here.

This place is in pretty rough shape, but I am hoping to fit my repairs in my operating budget. 

In each unit, I am planning on replacing carpet in the living room and adjacent kitchen with some decent looking tile. This will extend the life of the floor and will give an apartment a fresh look that will attract tenants. What does everyone think?

I am also looking for advice about how can I improve a curb appeal and facade of the building?

what's the average rent for a 1/1 in the area and what are you trying to rent these for? Obviously new paint throughout. If you're not going to paint the outside I would give the entire thing a good power washing. Clean out the gutters and the foliage on the roof. I can't tell if it's weeds or ivy all around the front but once all that is pulled out it will help clean it up a bit.

Also, what budget are you trying to stick to?

this looks rough. really rough. cut down trees and pressure wash. or else the look will come back in 1 yr

wish you nothing but luck simply because you jumped in!

Personally I'd go with a locking laminate over carpet. It's easy to install yourself and the latest stuff is durable and elegant. Buy extra for repairs which are easy because you can just unlock, replace the damaged board, and relock. We put down a super dark laminate in a rental with white walls and it looked very high-end without costing much.

What are the numbers/details?  

And if you think that's rough ~ you ain't seen nothing :)  

Originally posted by @Becky Davis :

Personally I'd go with a locking laminate over carpet. It's easy to install yourself and the latest stuff is durable and elegant. Buy extra for repairs which are easy because you can just unlock, replace the damaged board, and relock. We put down a super dark laminate in a rental with white walls and it looked very high-end without costing much.

 Agreed.

For curb appeal, I think cleaning and possibly painting will go a long way. 

I think removing the vines/bushes and putting some mulch down and some new bushes/flowers should help.  Thicker grass would be nice, but I am not sure it is worth doing sod.

Originally posted by @Carrie Giordano :

what's the average rent for a 1/1 in the area and what are you trying to rent these for? 

 Carrie, I am looking to rent these 1/1s for $500 a month. 

As far as budget I am estimating to put about $30K - since I am planning to do most of the work myself.

Originally posted by @George P. :

this looks rough. really rough. cut down trees and pressure wash. or else the look will come back in 1 yr

wish you nothing but luck simply because you jumped in!

 Yes, George, both trees are going. I found a guy who will do both well below $1K for both.

Still confused?

What are your actual numbers (Purchase, Rehab, Holding, PITI, etc... etc...)

Trying to help ya not break the bank, but we have to break you for information!!! lol

Originally posted by @Becky Davis :

Personally I'd go with a locking laminate over carpet. It's easy to install yourself and the latest stuff is durable and elegant. Buy extra for repairs which are easy because you can just unlock, replace the damaged board, and relock. We put down a super dark laminate in a rental with white walls and it looked very high-end without costing much.

 Becky, I like that look of contrast of black laminate and cool white walls. I actually already did one of my other properties in this style. However, my problem was the lack of spill tolerance  from laminate. About a year ago, my AC drain clogged and overspill water on laminate - which warped and swollen in the end. Otherwise, I like the look of your setup

Originally posted by @Steve M. :

Still confused?

What are your actual numbers (Purchase, Rehab, Holding, PITI, etc... etc...)

Trying to help ya not break the bank, but we have to break you for information!!! lol

Thank you, Steve!

Purchase price: 62.9K paid cash

Rehab: estimating 30K(doing most of work myself)

Holding and PITI - what is this?

Originally posted by @Yuriy Tymoshenko :
Originally posted by @Steve M.:

Still confused?

What are your actual numbers (Purchase, Rehab, Holding, PITI, etc... etc...)

Trying to help ya not break the bank, but we have to break you for information!!! lol

Thank you, Steve!

Purchase price: 62.9K paid cash

Rehab: estimating 30K(doing most of work myself)

Holding and PITI - what is this?

That helps a bit!  Roughly $93k all in grossing $2000/month sounds GREAT!

Nice job!  

Holding - If you went the HM (Hard Money) route

PITI - Principle/Interest/Taxes/Insurance

Gives us a better idea on exactly what your NOI would be :)

Either which way, it looks like a great deal on the surface!  Don't get too burnt out by doing too much work yourself.  I did on our first go around and learned real quick that contractors are much faster, I don't wake up sore, and I can get the same satisfaction by watching the rehab come to life standing on the side lines!

Good luck!

Originally posted by

Holding - If you went the HM (Hard Money) route

PITI - Principle/Interest/Taxes/Insurance

Gives us a better idea on exactly what your NOI would be :)

Either which way, it looks like a great deal on the surface!  Don't get too burnt out by doing too much work yourself.  I did on our first go around and learned real quick that contractors are much faster, I don't wake up sore, and I can get the same satisfaction by watching the rehab come to life standing on the side lines!

Good luck! 

Steve, thank you for the break down.

Principle/Interest - I bought this house cash, so there isn't any. Within a year I would like to establish HELOC and pull the cash out of this house - then I will have principle/interest.

As far as Taxes, I am ESTIMATING about 2K in taxes a year. I need to call the county and get true estimate of taxes for this year. 

Insurance. While I see this item to be a biggest scam in America, I will have to have insurance when I will try to pull the HELOC(bank requirement).

I have a contract buddy of mine who will be helping me out with everything. Its our fifth project together.

One thing that I am missing is putting a plan together to make a curb and inside appeal. I especially don't like the setup of the kitchen. I will post couple of photos to see if I can get couple of ideas.

Thank you  for all the help thus far, guys and gals.  

@Yuriy Tymoshenko you mentioned not liking the set up of the kitchen but it's hard to see how it might be reconfigured from the one photo. For $500 a month it doesn't look like that bad of a set up. Updating the tile and adding an inexpensive backsplash that adds a pop of color might go a long way. Also, new light fixtures would update it.

To add to the curb appeal, after pressure washing the outside I would paint the shutters and doors a brighter more inviting color maybe in the red or blue family. 

The front gate at the top of the porch looks rough. Are you keeping that? I can't exactly tell what it is in the pic.

Hey Yuriy, I replaced the carpet and water swollen laminate in a new quad of mine recently with Allure Vinyl plank flooring from HD. I went with the locking kind. Less than $2 a foot, and if you don't put it down yourself, I had quotes from $0.80 to $2.00 to install it.

Originally posted by @Carrie Giordano :

@Yuriy Tymoshenko you mentioned not liking the set up of the kitchen but it's hard to see how it might be reconfigured from the one photo. For $500 a month it doesn't look like that bad of a set up. Updating the tile and adding an inexpensive backsplash that adds a pop of color might go a long way. Also, new light fixtures would update it.

To add to the curb appeal, after pressure washing the outside I would paint the shutters and doors a brighter more inviting color maybe in the red or blue family. 

The front gate at the top of the porch looks rough. Are you keeping that? I can't exactly tell what it is in the pic.

 Carrie, I will take couple of pictures once I get back there. 

I love your idea about the kitchen. I REALLY love the idea of using bright paint on doors and windows! 

Front gate? If you are talking about small brick laid rails? They are kind of solid structure. Are you thinking about opening up a space at the top of stairs?

Originally posted by @Adam Morgan :

Hey Yuriy, I replaced the carpet and water swollen laminate in a new quad of mine recently with Allure Vinyl plank flooring from HD. I went with the locking kind. Less than $2 a foot, and if you don't put it down yourself, I had quotes from $0.80 to $2.00 to install it.

 This is a great look, Adam. And really low price!

And the best part about Vinyl planks is they are waterproof. Just make sure the subfloor is in good shape because the planks are thinner and more flexible than laminate floors. That was my first project with those floors but used them from others recommendations that they last longer than carpet, and are cheaper than tile, about the same as laminate but waterproof. (The planks themselves are but water can still get around the outside edge).

@Yuriy Tymoshenko We used the vinyl locking laminate, it's waterproof. We put lining underneath them to prevent any moisture getting into the subfloor.

Originally posted by @Becky Davis :

@Yuriy Tymoshenko We used the vinyl locking laminate, it's waterproof. We put lining underneath them to prevent any moisture getting into the subfloor.

 Thank you, Becky! I guess it a good thing that both floors are concrete 

Hey, guys and gals, here are some photos of the kitchen. I'm planing on replacing countertops with new laminate countertops. I will do a backsplash with modern glass tile(once I find it on sale, $6 a square is ouch). I will spray paint the fridge. I wonder what I should do with cabinets? I am thinking about replacing knobs. But I'm not sure what to do with actual cabinets. For flooring, I'm thinking about using vinyl laminate planks in the whole house.

@Yuriy Tymoshenko , this was a great deal.  I like the building and your plans for it. I agree with the others that the outside definitely requires some attention. 

I am a little curious about your budget.  $30K seems like a little much for what you have planned.  Is that simply your max and you're not sure you'll actually spend that much, or are you sure you'll spend that much?

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