All Forum Posts by: Kevin Bonner

Live in the Rose Park neighborhood. New to BP, still learning a ton, and still looking for a first purchase. Interested in local meet-ups and more than eager to learn from anyone who doesn't mind a little extra help. 

Great question. I was always so bummed as a tenant when the owners would cover up beautiful hard wood with ugly carpet, but I understand the perfect reason why the do. It's so cheap, and can be replaced for a very low cost. Your decision depends on the type of home I would say. If it's a SF home, I would get a quote from someone who specifically refinishes flooring. Then do a little research on other prices using their quote as a benchmark. 

While it may cost around $4k to resurface/refinish the floors, it will make the property look much larger and much nicer. You can possibly make up some of difference with increased rent, depending on the demand. I did remodels for mostly upscale SF homes for around 5 years, just a few of my thoughts!

Interesting situation. I'm pretty new here and may not be of much help, but I have a few thoughts. On one side, 50% of capital is still half of what you need. Plus, the investor would take on 50% of the risk correct? And then, the investor still has 50% more capital to put into your next property, right?

On the other, you are doing all the work, and essentially, the investor gets more return than you since you lose all of the time associated with the property. Maybe you can propose a 60/40 split on cash flow to compensate you for your time. 

It sort of depends on how badly you need that other 50% of capital, or if you can get financing for it. Or, have you asked if the seller would finance you the extra 50% with the terms you proposed to your investor friend? I think 10% return for 18 months, along with all of my investment returned after those 18 months is an incredible opportunity.

Hey Alex! First off, thank you for your service. Second, I'm pretty new to the site and to real estate investing, but have been studying how to look at some of these numbers for awhile now. I have a couple of additional questions.

1. Do you have a purchase price in mind

2. Property tax in your area (what city are you looking in)

3. Condition of the building

4. Are you saying the average rent for a 3Bed/2Bath is $869?

Without some of that info, it looks as if it may not be the best investment if you're looking for a long-term property to provide cash flow. Taking into account the other expenses associated with the SF house, it would be pretty tough to charge enough rent to cover all of the operating expenses. Looking into some multi-family homes may provide more opportunity, but I'm unsure exactly how the VA loans are set up.

I can give you a better break-down of the numbers with a little more info.

I strongly agree with Joshua. Refinishing floors requires quite a bit of experience to understand what you're doing. I have experience with quite a few remodels, and while you may want to keep the cost down, paying an expert who specializes in this type of work is definitely worth the money. 

As for the price points, you are typically you are going to get what you pay for. I would use Josh's reference points as a good benchmark to go off. I would stay away from stains, and stick with a quality clear finish. A well done rehab on floors such as those will make the property look incredible.