All Forum Posts by: Jon S.

@Charles Moore @Kimberly H.

All good points. I'm learning from this post. I installed granite in all 5 of my units. I didn't know anything about the porousness or the potential for staining or the need to seal them. I'm going to look this up and learn how to protect them. If you have any tips on sealing them, favorite products, etc, let me know, thank you. 

Alan G. Thank you for your reply. That's an interesting and simple method. I like simple when possible. My two properties would add up to about that amount, so that's perfect in my situation. I understand it's subjective but how did you arrive at a comfort level of $600k in each? Also, is having multiple properties in one LLC more risky in a scenario of foreclosure on one property, i.e., if one property in the LLC is subject to foreclosure, is the other property held by the LLC at risk as well? Someone suggested to me that its safest to keep them all separated in individual LLCs so that only one property is at risk in any scenario. I don't like to think of worst case scenarios but that's the point of all this planning. Thanks again.

I install granite counters, in part to get better tenants, and in part to Increase appraisals for refinancing. Hard surface counters do increase appraisal values.

I have a couple concerns about single vs multiple LLCs: 

Is it normally better to put each rental in a separate LLC? This would cause extra bank accounts, filing costs and accounting fees each year; is it worth doing this? I have an SFR with 2 an in-law suite, and a triplex, both needing refinancing and both going through commercial lending, so they have to be in an LLCs.

Are there any advantages or disadvantages to refinancing each property in separate LLCs (before refinancing) or does it make no difference? I will be personally guaranteeing these loans regardless.  

I'm getting refinanced on a SFR rental that is in my personal name, which has to be transferred to an LLC as part of the commercial lending requirements. I have a triplex that is already in an LLC, so the bank just assumed I want to quit claim deed the SFR over to the same LLC in closing. That is fine with me, it saves me money and time. However, will I have a harder time refinancing the triplex in a couple months because the LLC will already have another property, the SFR, with a loan on it?

The loans are all personally guaranteed, and its all based on my credit score and the revenue of the property, so does it make any difference? 

Thanks

@Chris K. That clause sounds like a good idea. I'm going to add that to my leases.  Do you word it exactly like that? Thanks 

Originally posted by @Justin Fox:

@Jon S.

I only have one active rental right now but we do a walk-through every time we pick up the check.  I change the A/C filter, check the disposal, fan blades, top of cabinets in kitchen and sink traps.  If your tenants are keeping the floor excessively dirty I would let them know that you expect the unit to be clean and either they can clean it up or be billed for your time to do it or professional services hired.  It can be awkward and I'm not the most authoritative or blunt person, but it's my money on the line.

I put that kind of language in my lease for the lawn as well.  Same for appliance damage due to tenant negligence.  Having a year+ worth of grime on the baseboards and floor isn't normal wear and tear either.

Justin

 Thank you Justin, I appreciate the suggestions and I intend to follow up in this manner. Thanks again. This kind of community support is invaluable for new investors. 

@Marcia Maynard

Two items you included that are interesting to me, kitchen back splashes, and garbage disposals. I'm renovating 3 kitchens right now in a triplex, it's almost done, and I have 4" granite backsplashes above the granite counters, but I did not install tile backsplashes the rest of the way up. I still can do that, so I'm interested in your thoughts. Do you find tenants actually mention or notice back splashes? Does it help get better tenants. I imagine it is a lot better for the walls near the cooking surfaces in the kitchen. Regarding the garbage disposal, I've been under the impression that they cause a lot of maintenance headaches, what has your experience been, and what advice do you have regarding them.  Do you have any advice regarding dishwashers? The kitchens are designed to have dishwashers, and I need to purchase some that are reliable.   

Thanks

Originally posted by @Cody Barrett:

That is an interesting situation.  I feel like if it is a higher end rental then the right kind of appliances really hits home.  Having an awesome kitchen only goes so far if the appliances are substandard compared to the rest of the kitchen.. The wife will always notice ; ) 

Also you should think about doing a quarterly inspection for maintenance and see how they are taking care of it.  If it is dented then boom note it and send a notice.  If you find that it is excessively dirty or scratched and not maintained then send a notice.  

Train your tenants that you care and will be on top of all that hard work and investment you put in to provide such a great home to the public! Say that during lease signing, "As a company we value the time, money, and effort to strive for comfort, quality, and cleanliness in all our units. So every quarter we will do an inspection to make sure we are upholding our company values."

Sounds like you got a great investment. Good luck sir! 

Cody, that is a great suggestion, I'm going to add this clause into all my leases from this point forward. "As a company we value the time, money, and effort to strive for comfort, quality, and cleanliness in all our units. So every quarter we will do an inspection to make sure we are upholding our company values."

I've had a problem with a tenant in another unit that does not mop the floor properly, and therefore all the grout that was sealed properly has turned black, in a matter of two months. I wasn't sure how to approach the problem, but my lease did say that there would be periodic maintenance checks, not quite the same wording, but I think that will serve as a reason to send a notice. I did verbally say something, and was told they were going to get a better mop, but they didn't, and the problem persists. The base boards are getting stained as a result as well. I'm going to send a notice. Thank you sir. 

Originally posted by @Brian Karlow:

Not necessarily as long as they are all in the same good,  clean condition.  Cleaniness good a long way in my experience. 

Good luck!

 Thank you Brian! 

@Matt Smith Reading your question, and your dilemma with dents in the SS appliance, is making me question my plan to buy SS appliances, so thank you for posting it. I might put something in the lease about dents and scratches if I do get SS appliances, but that doesn't help your current situation. Personally, I would not want to take less rent from the next tenant because of the banged up fridge.  I would consider selling the fridge on craigslist and getting one without all the scratches. Maybe buy a used one without all the scratches. Locally, I have been able to locate used appliances that are clean and in good condition. If I go with SS, this is one more reason for me to buy used rather than new, so when they get dented I won't have that much invested in them and won't have to charge the tenant that much from their deposit. Regarding taking pictures, one post I read recounted how they make the tenant take photos of everything from the tenants cell phone while doing a walk through, then has the tenant email the photos to the landlord right then, as proof of condition of apartment at the time of the walk through, which I thought was brilliant. I'm very interested in reading what you decide, how th etenant responds, and how it turns out.