All Forum Posts by: Keaton M.

@Aaron Gordy Thanks, that's a good way to put it into perspective. I'm still concerned about trying to refi and not being able to pull that money invested back out. I'm learning to make expectations clear with contractors prior to beginning the project. Hopefully that will save some time for everyone. 

@Ryan Kelly thanks for the encouragement! I really just wanted to set the bar really low so I could beat it the next time lol. 

@Marian Smith Absolutely. There have been two types of renovated units in the neighborhood. The first is just a new coat of paint and rents for maybe $50 more. The second did similar work to what we did with the open kitchen/living room and rents for around 1350 +/- $50. I definitely want to deliver more than whats around so its easier to get good tenants like @Joe Scaparra said and in hopes of the rest of the area following suit. I would like to just paint the cabinets and replace the faces, but my wife heavily leans on replacing them so we don't have to replace them for a long time. Although i'm reluctant, she's been right on a surprising amount of things so far (idk how she does it). 

@Joe Scaparra do you not try to pull your money back out of your properties after renovations? Excellent point that my time to fill a vacancy is also worth something. The goal is to have exceptional units that people never want to leave. Are you saying the new investor is better for the area by raising the bar or better for you filling rentals bc the competition is asking too much?

@Theresa Harris knocking down the wall was the fun and easy part. Moving the HVAC ducts and electrical that it housed was the expensive part :) We were able to replace all appliances (w/d too) for about 2k from scratch and dent stores or craigslist. The upstairs bathroom cabinet was falling apart at the bottom from water damage and also had to be shorter due to code violations of being too close to the toilet. The paint REALLY brightened up the place and I'm happy with the doors and trim. We removed all the trim and used a paint sprayer outside to paint them then just put them back. I will never go back to not spraying them :)

@Adam Zach

Forensic structural engineer here

So now distressed properties make me even more money!

@Stephanie Simmons There is one other 4-plex that has similar layout, finishes, and rental price. There were no major repairs except for needing to upgrade the electrical panel inside for inspection requirements. We shopped the cabinets and counters around a lot and ended up getting cabinets and counters for the kitchen and 2 bathrooms that were great quality and for a good price. 

Were the ones you found good quality still? We convinced ourselves to spend a bit more on replacing the cabinets so we wouldnt have to replace them soon down the road. The existing cabinets looked pretty old and the boxes were not in great condition or quality and made from mdf. Do you usually replace them when they're going downhill?

The surround was a prefab 3 sided tub/shower. We wanted tile so we had to pull the whole thing out. We ended up replacing the subfloor ourselves because of some water damage rot around the tub. 

@Scott Mac Thank you for the compliment. I really enjoy the DIY part so its nice to hear that others approve of the work. 

If it was just me, I'd live in a box in the side yard or at least rent the other room or something. But you are correct that we're forgoing the rental income, but its more my wife's sanity which is worth more than the extra 300/month. It will also be a lot easier to relax in our place while working on the other units when those start. 

@Joe Scaparra thanks for that break down, that helped a lot. There's definitely some tweaking in there but that's some solid back of the napkin calcs. You must be dealing with some dark magic to be getting those prices, but you've set a great goal to hit. By the end of this whole thing the renovation process should be a well greased machine. We've gotten a great painter that cost about what you said and I should be able to get that number down with some better coordinating on my part. I will keep scouring around for contractors and suppliers. Also your place looks great, thanks for sharing that. My wife is a big fan of the blue exterior. 

@Allison Stewart thanks for that reality check on cost accounting for Austin and contractors. I've had cold feet about trying to find contractors for tile and such for that reason of high cost or completely unreliable. I'll definitely be working on getting that time down. 

@Aaron K. I absolutely agree and we tried balancing the time with the cost and it went waaaay longer than anticipated. We spent a lot of time trudging through the mud to learn work/life balance, how to handle and coordinate contractors, design decisions, etc. Great input and we will take that lost income time more into account for the next one. 

My wife and I have been working on the first unit renovation of a fourplex in a B-ish class area. There is a lot of development around and we definitely are producing a unit much higher than the typical in our area, but I expect others to follow suit soon. We did a lot of the work ourselves but it still cost about 30k since we hired professionals for permit work and replaced appliances. We both work full time and its taken about 10 months for us to move into this unit. We start the next unit soon and I wanted to get input from this community on things I may hold back on next time or if the amount done is reasonable. 

Purchase price 555k with 20% down. Current rents are $1050 and will be raised to 1400 after renovation. The plan is to refinance in 1 year after all units are done.

@Jordan Lucas

@Shiloh Lundahl nailed it. You can achieve anything you tell yourself you can achieve, but seek advice and input from those who are already there. I love your goal man! You’ll learn a lot along the way. I would suggest finding a mentor and read/learn as much as you can.

@Kevin Zolea

Make sure you have clear expectations. I wear my rose color glasses often. I thought I would have the time to do all my own rehab. 4 month expectation turned into 10 months, and that’s with hiring contractors where needed

@Brandon Sok looks great! Thanks fire sharing!

@Nicole Parnell

The other risk is that they could suck and don’t care about your property. It will cost even more to have someone else fix it right. It’s ok to get cheap labor, just make sure you verify some of their previous work, which is not really do able with day laborers.

@Selina M Stone

I assume you’re married or have a partner now that accessed the same money, hence the you not being in control part. It sounds like you have a lot on your plate and then mixing that with someone else is very difficult. Im a big believer in Profit First, author was on Bp podcast. I’m a planner and budgeter and my wife spends based on what’s in the account. We both believe in saving and more importantly saving first. So our debit card account only holds money that we can spend. Everything else like bills and monthly payments are in a separate account. That way it’s clear how much we can spend on stuff like groceries or date night. Make sure you talk to your partner about what their goals and ideas are with money and implement something that works for both of y’all. Dave Ramsey financial peace is also a good resource. Do the in person class. Make a budge, try to stick to it, and adjust from there. Life isn’t about restrictions, rather, just use money to go after what you REALLY want

@Anthony Caraballo I’m not a flipper so take it with a grain of salt. I’m not sure what your degree is in but going this route pretty much makes the degree useless since you won’t be using it. Flipping also takes time and money. So unless you have a big cash reserve starting out, you will he burying yourself in debt with hopes of a big return from the flip multiple months down the road. I strongly recommend against this route.