All Forum Posts by: Jen R.

We have done it both ways over the years. Of course, the easiest is cash for purchase and rehab, then cash-out refi at 6 months. But here are some other strategies we’ve used:

1. Purchase with Conventional mortgage w/ 20% down (as @Stephen Hanks mentioned, it has to be liveable condition in order to do this). Rehab with cash, then at 12 month mark take out a HELOC to pull out all equity.

2. Purchase with cash, complete light rehab, then use delayed financing to pull out purchase price + closing costs. We did this with one home that only needed minor repairs so that we didn’t leave a lot of cash tied up as equity, and we didn’t want to wait 6 months to cash out.

3. Purchase with cash, use private lender or hard money for rehab; cash-out refinance in <6 months with portfolio lender (non-conventional mortgage).

Looks great! Congrats!

Is this a higher end rental property? That price seems quite high to me. Are you moving any plumbing? Although we have not used them yet, I’ve heard good things about RTA cabinets (you can find several dealers online). For our rental kitchens, we just make sure to get plywood frames (no particle board, as it will be destroyed when it gets wet). Most prices I have seen start around $1k-$1.2k for a standard 10x10 kitchen (not including assembly & install). You could also consider replacing some of the uppers with floating shelves to save some $$. 

I’d venture to guess that if every other home in the neighborhood is vinyl, the upgrade to cedar may not give you as much added value as you’d like, since it may be over-improving the neighborhood. Personally, I love cedar shingles, and for my own home, would choose it over vinyl every time. But, for a rental, it would all come down to return. If you can’t stomach the cheap-looking vinyl, fiber cement might also be an option, and would save on maintenance costs compared to cedar. On the other hand, there are some nicer looking vinyls, and perhaps you could add an accent with vinyl shingles to add some extra curb appeal? If you do go vinyl, I would suggest a light color that won’t fade substantially over the years.

There are lots of threads on hardening rentals, but I understand the aesthetic vs. affordability struggle! Here are some solutions that I’ve been pleased with, but keep in mind that we are not in low-rent neighborhoods, so some of these may not apply...

- Allure vinyl plank floors work great throughout an entire property; we use them in bedrooms, bathrooms, kitchens...it’s water resistant, affordable, and tenants love it. We never use carpet, anywhere.

- When houses have hardwood floors throughout, we refinish those in a natural finish (just poly/no stain), and then do a groutable vinyl tile floor, or ceramic tile in the bathrooms.

- Use a grey or greige paint for an updated look. Sherwin Williams Agreeable Gray, Worldly Gray, and Collonade Gray are all good options. Pick your flooring first then pick the paint that looks best with it.

- When we have to replace tubs, we are doing a tile surround. This really makes the bathroom pop, and is affordable if you use a cheap field tile with an optional nicer accent tile. We avoid tiling any niches, as those collect grime, and we always use dark grout and small grout lines to minimize staining.

- We remove as many things with moving parts as possible (i.e. no ceiling fans, we don’t provide washer/dryer, provide dishwasher only when necessary for neighborhood, etc.). We also remove screen doors, as those seem to get abused easily.

- Laminate countertops are fine. Sometimes we have sourced used nicer materials from Craigslist or Habitat ReStore. For example, a prefab granite island slab, or soapstone or Corian that we can fabricate ourselves. It’s also easy in our area to find used granite vanity tops.

- We try to include a few “upgrades” that don’t cost much, but stick out in people’s minds. Some of my favorite features: adding a few updated light fixtures (like a chandelier above the stairs, or wall sconces on a feature wall), adding an accent wall, including some floating shelves, exposing brick where possible, etc. These are all affordable, but including just a couple of these upgrades can make the property feel customized.

- Don’t skimp on plumbing fixtures. We stick with the big name brands...seems like every time we try to go cheaper or purchase based on appearance instead of quality, that is the first thing that causes headaches...and leaky faucets are always a major headache!

Hopefully that gives you some ideas, and good luck with the project!

Had a very similar issue at a property in Mansfield, OH. The storm sewer line backed up from the street into everyone’s basements on the street. Luckily we did not have a finished basement at the time, but did have to replace the furnace due to water damage. Never received any compensation from the city for the damage. We ended up installing a sump pump with a back flow valve after it happened twice, and that took care of the issue. And as others have mentioned, definitely add the water/sewer backup rider on your insurance policies - it’s worth it! 

We use Allure vinyl floors in all of our rental properties. Easy to install and tenants love it. It starts around $1.70/square foot.

Are you writing these as official docs for a company you own (i.e. to be distributed and communicated to other people/employees), or for your own personal use and direction? Do you already have your company/personal goals clearly defined? It will be easier to help if you provide more details about where you are in the process.

We had this happen to a rental listing as well, but on Craigslist. Consequently, I now watermark the center of my listing pics with our business name and phone number, and we haven’t had any problems since.

We’ve done this in a couple of homes. Just make sure the subfloor is clean and level. In one home, there was an area of the floor that wasn’t quite level due to a previous addition, and we had to use construction adhesive to get the tiles to stick along that area. Two years later and it’s holding up great.