All Forum Posts by: Benjamin Leung

So I purchased a house last month for the sole purpose of updating it into a rental property. It had been a rental property before and I got a great deal on it since it was very outdated and the owners were retiring. I have a list of things I want to do to make it rental ready but my roommate and a few other people have said that if it doesn't need it then I shouldn't worry about it. What I don't want to happen is for it to be below rental market value or not rental ready. I also don't want to spend too much money on improvements that won't add rental value. Here is the description of the property: 4 bed (5th bedroom possible) 3 full baths 2400 square feet .6 acre estate lot Right now the kitchen seems too small for a large family and I feel that it is also pretty dank. The sink is scuffed up and looks to have some significant staining, the countertops are a weird yellow color and a lot of the wood on the cabinets are scratched deeply or just kind of grimy. The lighting is less than desired as well. My plan was to add a kitchen island where the boxes are to increase counter space, shift the fridge to the right and build a pantry between the fridge and the counters, replace the sink and add a backsplash for easy cleaning. As far as cabinets, I don't know whether a full replace, just changing doors, or just replacing the counter top is the best choice. Running the numbers for me using the prefab HD/Lowes cabinets/stains ranges between $1k-$3k based on how far I should go. I originally settled on just taking off the door and the outside facing wood since it is scratched and building new face pieces since the inside is fine. Then my pantry would match the finish. My roommate who has been doing a lot of real estate and was an agent in another state said that I shouldn't worry about it since it's a rental. Here is a picture. http://imgur.com/a/oULFX Am I over improving a property? I also plan on doing some other improvements but I don't want to do a lot of it will add nothing. (Ceiling fans, sloping ground away from the house, bricking under porch area, etc) Also ignore the cardboard box island. My dad suggested putting it up to see if an island would help or get in the way.

Really? That worries me pretty bad as these houses in my area all seem to be built in the 1970s. 

So I have been calculating the capital expenditures for a new home and I was reading the bigger pockets article which was great. But there were two expenses on there that I really dont know too much about or what would be included in that expense. I am purchasing a larger single family home so I am trying to adjust the table to my expenditures. 

Structure/Foundation Framing: Wouldn't these repairs be included in an insurance policy or should I be putting the deductible in as a separate ticket item?

Landscaping: Is this just a general upkeep costs or for large ticket items? The property I am purchasing has a large piece of land but wouldn't require alot of maintenance outside of normal trimming and care.

Also, what are some other capital expenditures that you include in your homes? I don't know if I should worry about something as small as ceiling fans to include in the calculations.

Thanks Greg and Alex. 

So I met someone in my degree program today and asked if he managed to find a place as we have all moved here from out of state. This is kind of a standard question among all the newcomers. He mentioned to me that he had purchased a house to flip. Now, I have been really trying to get my feet under me with purchasing a rental and I really am not interested in flipping houses where we are. I said that I was trying to purchasing a rental and I asked him what he purchased it for and what was he trying to sell it for. He was pretty taken aback by the question and it seemed to really offend him.

I personally don't have any issue with sharing this information with someone since its something people can look up on most sites and I don't ask any really specific questions but I felt bad that it offended someone. Did I make a faux pas by asking about this? I would have thought from one real estate investor to another that it would have been fine but it seemed to really bother him and I don't want to offend anyone in the future.

Alternatively, if it is offensive, should I just not ask anyone this in the real estate community about the projects they are working on?

Hello Everyone,

I am new to real estate and am looking at an opportunity to use my VA Loan to develop some investment opportunities outside of Wright Pat AFB. Look forward to talking to you.

Ben