All Forum Posts by: Dave Kuether

@Dave Kuether I would hold on to it if the numbers are what you say. With the carpet replacement, have you considered going with something that is less upkeep?

While the repair costs will add up, if you sell the buyer is likely to pay less because those things are likely to be mentioned by an inspector assuming the buyer doesn't notice them. Use it as an opportunity to improve the property which will add value when you do eventually sell it.

Are you referring to tile, etc?

great points on the other repairs. I appreciate your insight!

I would do a vinyl plank or similar. With tile if someone drops something and breaks a tile, it could get expensive to replace (even if you keep extras).

Wow I went and checked out vinyl planks last night. Incredible stuff and I could even install myself saving $$$. Thank you for suggesting this!

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What does everyone use for a lockbox when they have potential tenants wanting to see the property? I am currently using a PM and will be self managing going forward soon. I have seen some that use an app and a code that expires in a set amount of time that look great but are also expensive. Since you aren't there showing them the property, how do you validate they are who they say they are take credit card info before they get a code if you use the smart app lock box? If you don't use the smart lockbox, what do you use and are you there to show the home?

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Originally posted by @Josh Bakhshi:

Dave,

Are you using a PM company or are you self managing? As for home warranty, I use Choice Home Warranty and they are pretty good. You just have to push them for more and play that game. As for appliances, it depends on why things are braking. If the oven is 10 years old, than that is normal. I would send someone to try to fix it and find out why it stopped working. If it is the tenant's fault, then they should be responsible and deduct it from the security deposit (but I am not a lawyer) and that is why I pay people to manage the properties. Same thing w/ the pool. I would put it in the lease that the tenant needs to pay for upkeep like the chemicals and making sure it is clean.

I am currently using a PM company but will be self managing going forward. I feel like PM and their vendors have caused more headaches and expenses then necessary. Have you had to do any big repairs with your warranty company?

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Originally posted by @JD Martin:

1. If you have had to replace everything a few times over in 3 years you either have really old, crappy appliances or crappy tenants. I have had one existing appliance replacement in the last 4 years.

2. We provide range, refrigerator, dishwasher. Tenant responsible for maintaining properly. We repair equipment malfunction not related to tenant actions on our dime and those related to tenant actions on their dime.

3. I don't have any pools but the people I know that do have them hire their own pool maintenance and either include it in the rent or include it as a surcharge on the rent. None of the people I know that rent houses with pools allow the tenants to select their own maintenance for the pools.

1. Yeah I think it's a combination of both. I have a PM and let them do the work and didn't follow what appliances they were buying and learned an expensive lesson there. Needless to say I won't be using a PM going forward, I feel confident in handling on my own going forward and providing a better experience to tenants because of it.

2. When you say tenant responsible for maintenance on appliances, how do you state that and have you had to prove anything that was tenant error? I was thinking of adding a clause that states appliances are supplied for tenant to use but if anything malfunctions, they are responsible for the upkeep and if they replace they can take the item with them when they move out, etc.

3. I like the idea of adding a surcharge or include in rent. Will do that on next round.

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Originally posted by @Dustin P.:

I would keep renting it, I don't think you'll see any slowdown in Gilbert anytime soon

Appreciate this, the market is always a bit hard to judge but you are closer to it than I am being a realtor so I appreciate that.

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Originally posted by @Theresa Harris:

@Dave Kuether I would hold on to it if the numbers are what you say. With the carpet replacement, have you considered going with something that is less upkeep?

Are you referring to tile, etc?

great points on the other repairs. I appreciate your insight!

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2 questions for everyone: how do you manage your appliances in the home like refrigerators, microwaves, dishwashers, etc? Do you have language in your lease to help hold the tenant accountable? Do home warranties actually work? I have had to replace everything a few times over in last 3 years and feel like that shouldn't be happening but I need better language in my next lease to help cover me so checking to see what works out there for you.

Also, is it a good idea to put into the lease a statement that a pool company has to be hired by the tenant to maintain the pool? I have had to replace expensive parts (pool motors, etc) allowing the tenant to maintain on their own and I feel like there needs to be a better option there. Let me know what you guys think!

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Originally posted by @Mathew Spray:

Ask yourself what is your goal for the rental property you currently have and what is your exit strategy? If the goal of the investment is being met then continue with the investment. If you do not have a goal, put some thought to making a goal and also how and when to exit from the investment. Me personally with the info you gave, I would lean to keep renting it out if you plan on keeping the rental for the long term. Otherwise you could take the 15K from the sale + 18K you would have spent on repairs and look for and new investment that is going to meet your goals. If you don't have 18K in your pocket or you would need to borrow money for the repairs, then that might change my decision a bit. Prioritize what needs to be done at the turn (carpet), and what can wait a bit longer (pool and roof) to spread out maintenance cost.

Yes you are spot on with what you are speaking to. My original goal was to have this as a nest egg into retirement. However the upcoming repairs concerned me. I currently have maybe half of that liquid right now to pay for and that's dependant on nothing else happening with the renter situation or more costly repairs. Carpet is a must, the rest can be kicked down the road a bit but I don't think I have more than 5 years there.

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Originally posted by @Michael Ablan:

@Dave Kuether - How much are they appreciating? What is your home valued now, and what will it be valued at next year based on your markets current appreciation %?

Home value is around 320k. If things keep going, could easily see 3 to 5% or more appreciation in next year in Gilbert AZ. Lot of articles pointing towards a downturn in the media but as long as jobs are solid, which they are, I feel like the market won't reverse, at least to a point where we were at in 2008.

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All Forum Posts by: Dave Kuether

Dave Kuether has started 4 posts and replied 13 times.

Post: Should I Sell or continue to Rent?

Post: Smart lock box for potential tenants

Post: Electric lock box for potential tenants

Post: Lease strategies regarding appliances and pools

Post: Lease strategies regarding appliances and pools

Post: Should I Sell or continue to Rent?

Post: Should I Sell or continue to Rent?

Post: Lease strategies regarding appliances and pools

Post: Should I Sell or continue to Rent?

Post: Should I Sell or continue to Rent?