All Forum Posts by: Phillip Rosin

I just acquired two identical, side-by-side duplexes and am starting to plan out my rehab project. I'm starting my focus on one unit, to figure out what works and does not work, and will hopefully then apply all those lessons to the remaining units. The properties do not appear to have been updated since they were built in 1998 and also were not really maintained well. They are located in a blue collar, "B-minus?" area of Clearwater, FL. I currently only have a few pictures taken from a website as I'm in the process of getting some tenants out. Each unit is a 3/2, 1,100 sqft, with washer/dryer closet in the kitchen area. Expected rent around $1,500.00, once updated. 

Now, for the kitchen, I'm trying to walk the line and not over or under upgrade. 

Cabinets: My thoughts are to paint (white)/repair the cabinets, update hardware and add a cabinet over the sink. I have built custom cabinetry in the past and considered boxing in the area between the cabinets and ceiling and installing taller doors, to give a more premium look, but I'm unsure whether that effort would really pay off. Alternatively, I could add a small crown to the existing cabinets and then paint, giving it a more finished look for very cheap. I also considered boxing in the refrigerator, to give a more polished look. I'm not sure, again, if that would be worth it. Minimal effort / money (diy), but unsure. 

Appliances: Will evaluate for ability to clean up / functionality. I may go with a stainless or black package. One question is, for the stove top, should it be glass or coils? As nice as glass is, it is harder to maintain and more prone to damage and I'm not sure a tenant will care much one way or the other? 

Countertop: I can cheaply put in a nice laminate IKEA countertop, or I can go the level 1 granite route. I'm not sure which will give me the best ROI. There is not a lot of counter space, so I'm estimating around $150 for laminate (diy) and $1,000 for granite. I'm not sure how much more granite would get me in this scenario, if anything.

Sink: Not sure if I should re-use or replace. May depend on the countertop choice. Faucet will be updated with a pull down most likely. 

Lighting/Electrical: The main fixtures will be updated with something matching current style. Update receptacles to white. 

Backsplash: Probably a subway tile look, either real or stick-on.

Paint: I'm not sure what is going to match the tile and these pictures aren't the best. TBD

Laundry Closet: Should I add a bi-fold door here? I am thinking about adding additional storage in there, either shelves or cabinets, as well. There is not a lot of storage space in this kitchen. It's hard to see in the photos, but it's to the right when walking into the kitchen.

Note: I attached an additional photo that gave me some inspiration regarding closing in the refrigerator and color schemes / fixtures.

I'd love to hear feedback from others who have tackled similar projects. Which upgrades are worth it and which are not? Any suggestions I haven't thought of yet? Thank you!

Thanks for all the feedback so far. One big issue is that, at current rents, I'm losing money (I can afford it but of course would prefer not to have to). I can try increasing rents and see where that goes. However, for at least one of the tenants, I have to get them out since one of the properties is for FHA and I need to move in within 60 days. Market rents for these are around 1400-1500 and they're currently paying 800. My $0 cash flow number is around $1,400/unit for 3 units ($0 from the 4th unit since I'll be living in it). I'm not sure the owners have upped rents at all over the past 10+ years... or ever checked on these units. Some of the tenants have been there almost 10 years and the places are disgusting.

My to-be property manager is advising there was a change recently that requires an additional 30 days of notice, on top of whatever the original requirement was. Is anyone familiar with this? I'm trying to find the actual documentation. 

The prior owner never had leases, so we had them write something up and get it signed for each tenant. This is what the documents contain:

To whom it may concern
Property located xxx...

Seller has not collected any security deposit
from Tenant. Rent is $800.00 a month. There is
no lease agreement, tenant pays month to
month.

I'm trying to determine whether the new rules regarding tenants will impact my ability to not renew month-to-month leases. 

I should be closing next week and have been under contract since before most of this craziness started. Two duplexes, each with month-to-month tenants in Clearwater, FL. The plan has been to progressively not renew the leases; since they are under market rent and the units need to be renovated. I'm wondering two things: 

1. Will I run into any issues when I try to not renew and get them out? 

2. How much notice is required? I'm not sure if it is 30 or 45 days. 

Thank you. 

I am trying to find a better rate for a conventional investment mortgage. I will hopefully be under contract shortly for a quad in Tampa, FL. Does anyone have a good lender they could recommend who has been timely in closing and given them good rates recently? Thank you.

@Stephanie Simmons thank you. I misunderstood before. 

@Matt Burr Thank you for providing your point of view. That is certainly another good way to look at things. 

@Stephanie Simmons When buying a personal home, taxes can go up greatly after reassessment. Is this typically a consideration with investment properties as well, or are those not protected by the same annual increase limits as a homestead property? Thank you. 

Thank you for the replies. As for down payment, I'm looking at 25% for a conventional loan. I haven't found a lender yet that will go under 25% for multi-family properties. Do you have any suggestions on where to look? 

Regarding what makes a good investment, most of my learning thus far has come from the bigger pockets webinars, regarding numbers to target. The are very big on 12% COC minimum. Would you mind sharing what metrics and values typically indicate, for you, whether a property is a good investment?

Last, would you mind sharing how you typically estimate insurance and closing costs, as well as property taxes after revaluation? I seem to be struggling on an approach for these numbers. 

Thank you!