All Forum Posts by: Kenneth Garrett

Great points from everyone.

I've furnished a couple of STR's from scratch. Base cost falls between $10-$12 per square foot. It dramatically depends on what you want to do. Doing dramatic theme furnishings are to cost you. Buying decent furniture that will last way better than the cheaper stuff.

I also separate rehab from furnishing a unit.

Review your competition and that will give you a pretty good idea of the level of rehab and furnishings you need to do to be competitive.

I use an excel spread sheet.  I have multiple properties and I describe each expense and revenue source in the description column.  It took a few years to get this correct, but it works very good.  My accountant rarely has to call me about an entry.  

I make sure I update entries at a minimum each month.

I always offer a monthly cleaning service to my tenants/guests on stays of 60 days or longer.  No one has elected that option.  I would just have them pay as additional rent for that month.  You could collect it separately, but I think that is a bit of a hassle for everyone especially if you are managing long distance.

Asbestos flooring that is not broken or frayed is not an issue.  Removing it will be more hazardous than leaving it in place provided it is solid.  I would tile over it and call it a day.  It is the fibers when broken in the air that causes the issues.

Best of Luck.

Sorry to hear about your difficulties with the building permits.  Not sure how you found your contractor, but in a large city, I find it odd he is not licensed.  Give him a deadline and if you don’t hear back find a GC that will take over for your permits.  Sounds like you are pretty much done with the project.  A full kitchen and bath remodel typically requires permits in most jurisdictions.  

Best of Luck.

@David Switzer

The ADA Guidelines do allow a steeper slope than 1:12 if the site conditions of an existing building can meet the criteria. The goal is to make things as close to accessible as possible. Your state may have additional requirements as well.

Best of Luck.

When I have a tenant sign a lease they also sign a document for the cost of repairs when the lease ends.  Normal wear and tear is painting.  Actual holes in the walls are additional.  You have to follow your state laws on this.  The lease documents should include all information.  I also provide a move in sheet the tenant fills out if there are any defects in the house.  I use this to evaluate damages.  Take pictures of all damages and send them a record of all damages and deductions from security deposit.  I do not send them pictures only the final document and a return of their security deposit if anything is left after the deductions.

@Raj G.

Default Interest rate is a different rate than the original loan terms because the borrower didn’t repay the loan per the loan terms. That could 12 months or whatever you agreed to provided it’s in writing. Here is the language from the note I use.

B. Default. If Borrower does not pay the full amount of the principal and interest on the date it is due, Borrower will be in default. In the event that Borrower is in default then the interest rate will increase to fifteen (15%) percent per annum from the date of the default to the date that the default is cured or the loan is paid off in full, and Borrower will be assessed an additional loan fee of 2% of the principal amount.

I would recommend always use an attorney to draft your documents and use a title company to close. Documents need to be recorded so in case there is a dispute you followed the legal process.

@Khandbari Rai

I have been self managing my STR in an area that is highly competitive. The cost of hiring a property manager is very costly. Find a reliable cleaner and a handyman and your set. It takes a little more work, but it's not that difficult.

Best of Luck.