All Forum Posts by: Mitch Price

@Jonathan G.    @Nathan Gesner

its not necessarily that they cant afford the $700, I talked to the previous owners and they simply just were oblivious to the rent market raising over the years and never raised their rent the whole time they were living there. They just liked how the tenant was on time every month! The reason they are on time every month because its so low! haha I was also thinking at keeping them at $550 in their current unit (with month to month lease....but rehab should be done before the year is out so I may not have to do month to month) till the rehab is done, on my side and just swap them to rehabbed side with $700 year lease once its finished.

 What do you all think about that?

Hello, BP family!

In a little bit of a dilemma. Do I lose a good tenant or lose money due to rehab? 

Here is my issue:

I have a duplex I purchased earlier this year, that I am house hacking. When I purchased the property, I inherited a great tenant (quiet, pays on time like clockwork!) that signed a new lease with the sellers right before they sold the property. The current lease is up January 31st 2019. They are currently paying $550 for a 2bed/ 2bath, which is WEEELLL BELOW market rent for the area (average is around $780). I am currently making improvements to the side I am living on (nothing major, just giving the unit a facelift). I informed them that I would be going up on the rent (to $700) back in July. I do plan on making improvements to the side they live on after I am finished with the unit I am living in (with my job, which is 90% travel, I am not inconvenienced by having toilets, shower, cabinets, floors, etc ripped out and taking a little while to get replaced) They recently reached out saying they would like the rent to stay at $550 if no improvements are being made to their side, currently. My improvements look to be finished before the end of the year.

Questions:

1. Do I move them into the improved side and charge them the $700?

a. With this option, what all do I need to do to make the transition as smooth as possible (utilities?, move out inspection?, deposit?, etc? that sort of stuff)   

2. Do I keep improving my unit and get to their unit when Im done with mine? And have the tenant try their luck at finding a 2bed/ 2 bath for $550 (Ive done the research they aren't going to find that for that)?

b. With this option I don't want them living in a warzone while improvements are being made. Id have to be very particular on how I go about improving things

3. Or do I have them sign another year lease at the their current rent rate ($550)?  

c. leave things as is and just save up for when it is time to make the improvements to their unit it will be somewhat easy. (I say somewhat because dealing with contractors is never EASY!!!)

@Frank Chin Yes! Definitely worth the fuss!!!

I just had a quick side bar question pertaining to the question. Im currently shopping for toilets to install in my rental. What are these high efficient toilets he trying to install? Are they worth the fuss?   

@Tarik Turner HML? I don't want to take on any unnecessary debt. I figued the repairs will pay for themselves in the long run

@Dennis M. I'm sure the loan is based off of my credit how much I will get right?

@Caleb Heimsoth. I was thinking around $3 - 4K should be enough to knock out the rest of the rehab I'm debating on whether I should just save that amount use my personal funds because it isn't that much that is needed

Hello there,

I am considering different ways to fund the rest of the rehab work I need done on a duplex I purchased earlier this year.

The Facts:

- Its not a major rehab. I want to give the side I'm occupying somewhat of a facelift.

- I have already taken out cabinets, vanities, toilets, carpet (from two bedrooms/ will replace with laminate wood / I WILL NOT DO CARPET IN MY RENTALS!!!!!!) and I'm having the interior repainted.

My question should I just save up the money (from my 9-5) and pay for the rehab that way? (Which is what I'm kind of already doing getting everything fixed in stages. Only thing is its taken a bit longer than I anticipated. I purchased the property in April)

OR

Take out a small loan from somewhere to fund the rest of the repairs (and throw getting the appliances in there too)? Surely there are some safe investor friendly ones that are made for this very thing. Not those sleazy grimy SpeedyCash type loans with 700% interest written in teeny tiny fine print.

Let me know what my options are in this particular case? Whats the best course of action moving forward?

Anne Smith good rental area! The neighborhood is full of multifamilies!

Andrew Boettcher hmmm you make a very good point!