All Forum Posts by: Cassi Justiz

Hey @Meredith Burt, 

I'll start by saying I'm not an appraiser, so don't quote me on it. :) 

I would say adding the free standing tub would likely add very little value. The only way they would give it additional value is if there were comparable comps that showed homes in the area with a free standing tub actually sold for more. I would say in most areas of OKC it would add minimal value.  

It would be hard to show increased value for homes with one type of fireplace vs another. I would not expect to get any value on this.

Fences to seem to have some value but it's strongly going to to depend on the area, size of lot, type of fence, etc. I wouldn't fence the entire property, but you want a fenced in yard. I would say you may be able to get the cost of a basic fence in increased value, but you likely will not get additional value for anything above a basic fence. I would say the big value you will get here is going to be on the landlord side. Tenants with kids or pets (most tenants have one or the other) are going to want a fenced in yard. 

Hey Grayson, 

Something to consider is the length of the loan. Typically commercial loans are 15-20 year and conventional loans can be as long as 30. If you don't mind a longer loan term, conventional loans usually make more sense for cashflow. 

I think if you have to put 20% down, you might as well do a traditional mortgage and lock in that super low interest rate for as long as possible. Rehab loans have a lot of red tape around them, so unless you are doing major renovations it's probably not worth messing with that. 

Having a mortgage will impact your debt/income ratio which is what they typically look at for home loans. However, if your rental is cash flowing that should be taken into consideration by the lender. 

I personally don't think that you should have to pay monthly to have an investment property. If you lost your ability to float the additional expenses of your investment properties, what would your backup plan be? 

I would go ahead and sell both, take the 70k net and re-invest into a lower cost of living area where positive cashflow actually exists. Plus, there can be some tax advantages to loosing money in real estate. Obviously that's not ever the goal, but it helps take away some of the sting. 

I would sell both now while the market is still hot, because if the real estate market dips you'll be out even more than your monthly holding costs. 

It sounds like you've already closed on the property. Ideally, I would have tried to at least get a month to month agreement in writing prior to closing. I would go ahead and start the conversation about getting them on a lease. Maybe start with a moderate increase from the current rent if they seem to be a good tenant. You can do a shorter term lease with plans to increase rents at each renewal. I'm not sure what the regulations are where the duplex is located, but maybe you can put some pressure on them and say that they either sign a lease or move out. (If that's legal).

 Hopefully they will be cooperative!

Of course! I would say about 25% have strong enough feelings that they wouldn't buy a house with carpet in any living areas unless they had the budget to change it out. About 50% would choose a house without carpet if given a choice and the other 25% are fairly neutral. 

I haven't come across any buyers that were disappointed in a house NOT having carpet in the living areas. 

I would go ahead and get a real estate attorney involved ASAP. There are a lot of unique considerations right now because of the Cares act. 

Also, most states/areas have laws about locking out tenants (whether they are authorized tenants or not!) without notice, so the sooner you get an attorney involved the better. 

Unfortunately, most loans will require a minimum credit score in the 600 range. I would go ahead and meet with a lender or two and come up with a game plan. Find a lender that specializes in credit repair. They can usually look at your entire credit picture and give you an action plan with your specific goals/situation in mind. 

Hey @Ryan Peacock, 

I'm not much help with the Tulsa area, but you should reach out to @Tracy Streich. He is a property manager in Tulsa and would be able to give you an idea of what to expect. @Scott England is also a good resource for both OKC and Tulsa! 

Since you are not doing it for yourself, I would just stick with the carpet the installers are recommending. I agree that I haven't seen a berber carpet in an updated house in a while. 

I know you said you are sold on carpet, but I'm seeing carpet in living areas becoming a deal breaker to my younger buyers. I've had several clients recently tell me that they won't consider a house that doesn't have solid surface flooring in common areas. Most of the time you can get a vinyl plank for about the same price as carpet and it's definitely more well received. 

If you do stick with carpet, I'd go with exactly what the carpet installers are suggesting. Affordable, neutral carpet. Carpet is very much a dividing argument right now, but people that don't mind carpet aren't going to be picky as long as it's new and neutral. 

Some people like to do final walk-throughs prior to closing. We don't always do this on the tenant occupied properties, but if you are going to be in town that could be a good opportunity to check out the properties and meet the tenants if you want to do that.