Before & After (on a budget) What do you think?

Question

This is not a fix and flip but instead this is a update to my 3rd rental property (buy and hold).

Removed green stove, yellow counter tops, green sink and opened the kitchen up by removing the row of cabinets that blocked the view of kitchen.

Added- black stove and vent hood, stainless sink, laminate counter tops (took a big risk with counter tops because I did not want to go with standard plain rental beige counters). and stained the cabinets.

Kept- cabinets, flooring, lighting (due to budget)

I have my first potential renter coming tomorrow to see the property. I will get renters feedback but would also like yours.

Sorry could not rotate this picture.

Click to see on Zillow

Jared Schroeder · Answer

I'm definitely a fan of your improvements! Looks about 40 years newer now! :D

Kim Griffin · Answer

looks 100% better.  great job!!

Dustin Verley · Answer

@Rhondalette W.

Haha, one person's junk is another person's treasure. No need to feel guilty!

Jared Schroeder · Answer

Well I only have one single family my wife and I bought last year. Nervous about getting more rentals locally as the county I'm in and most of the surrounding counties have had declining population for a while. I'd need to drive a bit over an hour to get to places where there's growth. The one rental I have is doing well. We're losing money for now, but had to buy appliances, paint the house, etc.

Rhondalette W. · Answer

Thank you Kim.

Rhondalette W. · Answer

One of my tenants had a credit score a bit below 600. She is a high school teacher with a bunch of student loans that is keeping her credit score low. I believe that we place too much emphasis on credit scores. Personally, I use credit karma to track my own score and my scores decreased 50 points when I got approved for 2 new mortgages for my newest rentals. Also, if you use more than 30% of your available credit card balance your scores decrease etc. Even though I still have a good credit score I think the whole system is not exactly fair. I found out that I got a ding on my score when I wanted to turn on utilities at my rentals because they do a hard credit check. So turning on utilities decreased my score? (sorry for the credit rating rant!)

To answer your questions, I got 3 contractor bids for the work. There was a significant difference in the bids (varied $5K). I selected a contractor that was willing to work within my budget. This contractor is also an investor who owns 50 rental properties himself, so he also mentors me along the way. For example, tells me where to purchase discounted used appliances for rentals etc. Contractor selected some items from his own warehouse since he has 50 properties himself. He used same carpet he uses in all of his own properties, recommended vinyl plank flooring because that is what he uses etc.

The disadvantage to using this investor/general contractor is that sometimes his properties my take priority over mine. So, I would not recommend him to everyone but I am glad I selected him because in essence he is teaching me to be a general contractor for my own properties. I hope I answered your questions ;)  Sorry for the long rant.

Abou C. · Answer

@Rhondalette W.  I think baseline credit will be good even if its 600 bottom.  hod pads.com or rent mapper are good sites to list as well.  In term son rehab on the property/unit how hard did you find it in terms of dealing with contractors or selection of material. P.S sorry for the 21 questions.

Rhondalette W. · Answer

Good question. If you scroll down to the bottom of the original post you will see the link to zillow where I have advertised the property. I have learned to list all of the rental requirements in the advertisement since the last rental I advertised I got over 150 inquires all wanted to know the screening criteria. If you get a chance click on the link and let me know what you think. I do not have a credit score requirement but I do have a "no criminal background and no past evictions" requirement. I expect that they will have poor credit because if they have excellent credit they would probably qualify for a mortgage and buy instead of rent. So as long as they are not filing for bankruptcy in my opinion they are good.

Abou C. · Answer

@Jared Schroeder I wonder why that is?. I mean loop net isn't the best way to find deals, But I use it for brokers so see who list what and also window shop.  A lot of affordable large units, but I think that is a bad sign depending on the areas.

Abou C. · Answer

@Rhondalette W. look forward to it.  I wonder how you will screen the tenant?, and what your baseline criteria are?.  In terms of credit score, income and etc.

Before & After (on a budget) What do you think?

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