Rental Property Investor · New Meadows, ID · Member since 2019 · 15 posts · 1 vote
Good Morning BP folks, I have a SFR (3bd/1bath) under contract that has heavy smoke damage. The unit would require extensive work to remove the stains/stench as well as make needed rehab updates. I am thinking about doing going big or quick and easy...
Option 1: "light rehab" of paint/cheap floors/etc. and marketing the unit for smokers and pets. Current rental market for the area is extremely limited and I have never seen a unit advertised for smokers/pets in the area and I believe there would be a lot of interest.
Options2: "Full Rehab" - Complete update and replacement of everything. while adding a second bathroom and possibly adding a small Attached ADU studio. Marketed to non-smokers and no pets.
Anyone have thoughts on renting to the smoking community?
Yes Bruce, I agree. That has been model for the last 3 rehabs and would rather go the way of a full rehab. As for the rent vs. rehab numbers. The "light" rehab would be around 20K and would be a 3/1 smoking unit guessing rent could be around $1500 a month,(this is going rate for non-smoking units). that would be 200$ a month in cash flow.
The Extensive rehab inclusive of an ADU addition would be about 90K for a 2bed/2bath unit (1500 month rent) with a 1bed/1bath unit (800$ month rent). 450$ a month in cash flow
more background: I live and operate in a small rural market doing most of work on my own rehabs, kinda the one project at a time approach. Well I happily have two projects about to be going at the same time and have a new ADU construction project starting next year. And was thinking if I just keep a minimal investment of time/money in the smoker house now and do the big rehab down the road for bigger cash flow of Also the lot is zoned commercial so there is the chance of a complete tear down and a new 3-plex construction.