All Forum Posts by: Ryan Husser

Hi Gavin! 

Congrats on your first duplex, that is super exciting! For the rehab process I would always recommend a fresh coat of paint and new carpet or laminate flooring that is inexpensive but durable. My favorite is the fake wood flooring that you can usually find at Home Depot or Lowes at reasonable price. 

Otherwise you should focus most of your budget on the kitchens and bathrooms. Pinterest has great design ideas for cabinets, shelving, backsplash tile, etc. Renters will be drawn to these areas first when looking at the property and the pictures online. 

From a budgeting perspective, always estimate on the conservative side of things. There will be delays, unexpected costs, etc. Being tight on cash is never a good feeling when it comes to a major rehab. Lastly, make sure you vet your contractors as this can quickly become your biggest headache. You always want to go with someone who is licensed and insured to manage the project if you are not doing it yourself. It will be more expensive, but it is better than being scammed. Shop around, get multiple bids and hold them accountable for sticking to the deadline. BP has a ton of books and articles that will guide you through this process. 

Hopefully this helps, but let me know if you have any other questions! 

Hi Mike, 

The commission aspect is a question that comes up quite a bit and in the end it is 100% your decision. That being said, likely 2.5-3% of the 5% commission will go to the buyers agent. A lawyer is a good alternative however the costs can vary depending on who you hire. The biggest advantage with an agent is that it will be marketed on the MLS, Zillow, realtor.com, etc.

With a FSBO it will likely not get the same exposure as the MLS and some buyers might not even see the listing. Also, with no agent involved you would need to be present for showings or open houses on your own. Plus, many things can come up during closing that an experienced agent will navigate through. This might be more difficult in an FSBO situation. Examples such as a lower appraisal, title issues, mortgage issues, are all things that can throw a deal under contract, off-track.

Depending on your time and experience FSBO might be the way to go, but if you are even a little unsure I would strongly recommend an agent or at least pricing out an experienced attorney that will be able to help you if issues arise. Hopefully this helps!
 

If you're just starting out it is likely not needed. If you have a rental property, liability coverage should be enough when you are smaller. You can increase the liability coverage on your regular homeowners insurance and also get a supplemental 'umbrella' policy, with can increase the liability limits further. The nice thing with this is the umbrella policy can cover multiple properties as you grow. 

Also, lenders will not allow you to close the mortgage loan in an LLC name. It has to be your personal name as it is much harder to foreclose if things go south. After closing you can change the deed over to an LLC but that could trigger the entire mortgage being due if the bank finds out.

All that being said nothing is preventing you from registering as an LLC as it is easier to split up expenses and revenues from your personal accounts. Hopefully this helps!
  

Hi Jordan! I've had some success with virtual assistants on Fiverr in the past, but have never used them for cold calling. Not sure what the cost would be for that, but I would start there as you can at least a list of possible VAs together. Hopefully this helps!