All Forum Posts by: Jamie Brayton

@Sean Gallagher I know this is an old post, but I was wondering if you might be willing to share what you learned from this process. We are in a nearly identical situation my lender and accountant have both agreed this is a complicated one. I want to be sure we will fully understand all of the implications of this deal before we accept the terms. Feel free to message me.

Thanks again for putting this together. Looking forward to it.

Mateusz Prawdzik That is really helpful. Let's talk more. Feel free to PM me.

We ran into this. We ripped up the flooring and I rolled a layer of kilz on the sub floor. I put kitty litter in small containers and put them in rooms that were really bad. Containers of vinegar left out also helped. You can't smell a thing now.

@harjeet That's really helpful. I am noticing a difference lender to lender, and that's make or break for us. Any tips on how to navigate the borrow money to borrow money dilemma we are facing?

Mateusz Prawdzik After talking to many, many lenders I think it is clear that is just about the best rate I'm going to be offered. What I didn't know was that we couldn't use borrowed money to borrow money. That makes sense, but between rehabbing the other house and the initial costs of this house that would deplete our savings to an unwise point. This deal is stellar, so we hate to let it go. With that said, we are now looking at lower money down and anticipating a higher rate. We plan to refinance immediately after the seasoning period anyway. I'm not sure if such an option even exists right now. Any guidance on that?

Things are moving quickly for us. I recently joined BP and we closed on our first all cash deal and have a second in the works. The advice from this forum has been invaluable. We have been (pre) pre-approved by a big bank at 25% down, 4.5% interest. I've been self-employed for nearly 2 years, but until I reach the 2 year mark most banks won't look at my income. We want to prepare ourselves in case underwriting won't approve us (there is a real possibility this will happen), and want to make sure we are getting the best deal (ideally, we would like to put less down). Can anyone local(ish) recommend some lenders they have had good luck with? I started with bigger national banks to get some practice requesting financing, and I'm running down my google search results now. I'd love to narrow my search.

You guys are so good. I love all of these ideas.

I think our revised plan is to paint, remove the scalloped trim, look into adding a shelf for the microwave, replace the hardware, and put in new vinyl floor (the old was peeling and lifting).

As for appliances, I'm now sold on the black for the future but I think I can salvage the white dishwasher... how terrible are white appliances?

@Deanna McCormick @Walt Dockery  This is super helpful. As I mentioned, this is our first go at this, so I wanted to make sure we were headed in the right direction.

We just closed on our first rental property and need to give it a face lift. While we have cash for renovations, I'm inclined to spend as little as possible. My husband, on the other hand, would love to completely gut this kitchen. This is a foreclosure that is a cosmetic mess right now, yet we already have a tenant interested in signing a lease now that would begin Oct 1 at $1000/month. The bones, size, and layout of the house are excellent, and it is on a nicely fenced piece of land.  I think that the reality is this house can only earn so much whether it has a freshly painted kitchen or a $50,000 kitchen. We can't change the neighborhood. It has a partial view of the river (awesome), and also has very, very low income housing just down the street (less awesome). 

Considering this information, my instinct is to do the following. I'm interested in what experienced landlords think.

-New white appliances. We might be able to salvage the dishwasher.

-Add trim (picture above) to existing cabinets and paint a slate grey. Remove that dated trim piece (it is barely nailed on). Replace hinges.

-Paint walls a neutral color

-Update lighting under the cabinets and on ceiling

-Replace floor

-Leave the sink and counter

The biggest point of contention is whether or not we should replace the cabinets. They are dated and it would be easier to do the work now, but I wonder if it is worth it.