All Forum Posts by: Justin Tahilramani

Take it down to the subfloor and start over. 

 That is only because you are getting hosed on the sale price. 

Yes, it is when you are over leveraged and got there via your VA loan. He isn't generating enough cash flow for this deal to make sense. One water heater or HVAC compressor will wipe out his entire year profit. 100% of Fayetteville MF is overpriced. You can get way better deals on SFR in today's market.

You only have $108.44 positive cash flow on a quad? Is that for all four doors, or $108.44 per door? Please - do yourself a favor and share all your numbers. If you are only clearing $108.44 on four doors - that is a TERRIBLE deal. Even $108.44 per door would be less than ideal.

Look - I am not trying to be an ***, but please do yourself a favor and break out your numbers. My Fayetteville quad clears about $800/month on a good month ($200/door - which is pretty average).

Your CoC return is a worthless metric if you are only clearing $108/month.

Please don't tell me that its one of the Quads off of Aftonshire...... 

I have been in the Fayetteville market since 2012. What are the numbers? Saying that they "check out" doesn't allow anyone to actually help you out. If they are good - we will congratulate you. If they aren't good - we can maybe give you some recommendations. We are here to help each other out - there are a few of us that know this market pretty well. 

@Alexander Felice

@Evan Isner - I hate to be the one to share bad news with you, but there is a 99.5% chance that you are WAY over paying for your place. Almost every MF property in Fayetteville is grossly over priced.

Given recent events - you are probably in even worse shape. What do the numbers on this place look like?

Frank - I also forgot to mention that when you start ripping out cabinets you will run into other issues. The new cabinets probably wont work with the existing flooring unless modifications are made to the kickplates. Also - you will likely start to get project creep. Kevin does a good job of discussing that part. Replacing cabinets is easy in theory, but usually a PITA in practice. Also - your tenants probably wont care if its a middle of the road rental property.

What is the price point on this rental? Is it an A, B or C class property? If the cabinets are in good shape - I WOULD NOT RIP THEM OUT. Those cabinets are probably built 10x better than anything that you can get in the retail market today (outside of custom). Remove the hardware, fill in the holes, de-grease, light sand, oil based primer, spray cabinets with a quality cabinet paint. Less than $200 in materials if you do it yourself. Under $1k if you pay someone else.

I would recommend replacing the counter tops with new formica counters. Look up "Meet Kevins" youtube video on kitchen cabinet updates. Follow his advice - he knows what he is talking about. 

 What do the numbers look like? I am in a very similar situation -also in NC.