All Forum Posts by: Prashant P.

John, I would check the quality of the wood after sanding. You would be surprised to see what sanding takes off.

Also, if the room is dark with no windows I would no go with a dark stain. It will make the room look smaller

I would just set an average rate for the year when they move in. So in my example I would charge $55 a month for the entire year. The 10% add on is to account for the variablity in the monthly payments. If you are losing money you can always adjust the number when you renew the lease.

That way there is no finger pointing.

You may also want to consider how long the home is going to sit on the market after renovations. Maybe the lender is seeing that houses tend to sit on the market longer after renovations.

You mention all you construction costs but you did not mention your holding costs or realtor fees. Holding costs are a big chunk of your profits, espically if the house might sit on the market for a while.

I would look at J Scott's pages to give you some examples.

Hi Luke,

Below is what I would do but first I would make sure it is a legally zoned 4 plex. Most cities require seperate meters at least for electric for multi family units.

If I was in your spot. I would ask the current owner for the heat and electric bills for several months. I would then find the average of each. This average cost plus a 10% add on could be divided equally among the four units. So if the electric bill average was $200 I would add 10% to make it $220. Then make each unit pay for $55 for electric.

It would be hard to determine who used what if there are no seperate meters.

James has it pretty much nailed down. You might not be able to make a living off or renting one house. So the goal is obtain several properties that provide good cash flow. So if you own 10 properties and your total cash flow after expenses on each is $250 a month. Then you have a total profit of $2500 for the month.

Do you have an adandonment clause in your lease? If you do, you can post notice that the property has been abandoned and all occupants must vacate the property.

Since you accepted payment from the new person, you have to check your state laws to see how long you must hold the security deposit if the origninal tenant did not provide forwarding contact information.

Also remember that mold will grow on anything that can retain moisture. If your drywall got soaked there is a chance the the wood studs behind could have gotten wet. Mold could be growing there as well.

Hey Brandon,

I bought a house in Germantown a month or so ago. The previous owner had painted the hardwood floor and put stick on vinyl tiles on as well. Anyways I had them refinished and they look alot better.

I was going to do the work myself but instead hired someone. I met with three companies and the guy I hired did a great job, fast and had communication.

Let me know if you want his contact information.

Hi Ciro,

Great to hear you are starting out. Your question is pretty broad so I will try to answer as best I can.

When looking at the property you do want to look at the neighborhood. Are there the houses neatly kept, are there boarded up houses around? I would ask myself, if I were a renter would I want to live here.

If you are looking at lower income housing, you have to remember that your standards of living might be higher than someone else. I like to take a look at Craigslist and see what houese around the one I am interested look like and what they rent for. This will give you a good idea of what a renter is looking for.

You also want to look at maintenace issues. Check the dates of when the furnace and water heater were installed. Look at the electrical panel and see if it is newer. Look for stains on the ceilings indicating roof issues.

That should help you get started

Have taken a look inside the house.

There is a property near me with the same external scenario. When I went and saw the inside I found out why the house was sitting so long and continues to sit on the market.

The has mold everywhere, the foundation is cracked, the layout is horrible and addtions that were made are falling apart. It would be a better idea to tear the house down.