All Forum Posts by: Ryan R.

Good points Jon. Current tenant is leased for 2.5 more years and has a lawn service already.

As far as adjustments, I have a sprinkler system at my primary residence so I'm familiar with adjusting the heads every few months.

I'm personally on about a 1/2 acre lot with around 12-14 zones; can't remember exactly at the moment. My water bill increases by about $100 a month in the summer. So based on lot size, my rental property water bill should only increase by about $30 a month.

Thanks Brian, you make a good point about resodding the yard for resale.

The current tenant has a lawn service and I think she pays them to seed and fertilize as well, but with last years drought it didn't do any good.

As you mentioned, I don't want my property to be a reason for the values to come down.

Cynethia Scott, regarding the inspection, that is based on experience. Personally, the next property I buy, I'll be climbing through the attic and under the house so no inspector for me. I've paid too many inspectors to tell me the obvious..

For you, I would hire an inspector if you believe that the costs to update the property are minimal, such as paint, carpeting, landscaping etc. things that you will possibly be doing yourself or hiring unskilled labor.

If the renovation is more extensive such as a possible new roof, major flooring work, plumbing etc. I would find a contractor to work with and allow them to perform an inspection. A good contractor can do just as good as many so called home inspectors out there.

The great thing about forming a relationship with a contractor, is that they can give you good estimates before you buy a property.

Have a good plan with supporting documentation. How long will it take? How much will it cost? How much cash flow will it generate? What's my exit strategy? Who manages the property? Think of it like a business.

I've got a property that is considered to be a fairly nice rental in my area, B+ or A-.

My current strategy is to hold this property for appreciation for the next 7-10 years, possibly longer.

The yard is becoming less than desirable. About half of the houses in the neighborhood have nice landscaping and sprinkler systems. My thinking is that a nice yard will attract tenants, increase my possible resale value in the future, and the price for irrigation systems will probably never be less expensive to install than now.

I can pay for the system entirely with cash flow generated form the property. Estimates are about $2,000. The house was built in 05 so no major expenses "expected" in the near future.

Good Investment?

Cynethia Scott, proceed with caution. I think the most important aspect of moving forward is knowing how much money and time it will take to get your property rent-ready. This takes two things.

1.) Accurate estimating.

2.) Knowing what condition the property needs to be in order to attract tenants. You may tour some of the rentals in your area to know exactly what the standard is.

If you can do this accurately, you will know how long it will take to fund the repairs and when you can expect to start renting to tenants. (making money)

Two nights ago, a rental house nearly burned to the ground not far from my home. It was a couple with 11 kids living there!! They lost everything; no renters insurance...

Definitely recommend they purchase insurance. I'd hate for these folks to look to me to replace their stuff if it was my home. Many renters are ignorant on the matter.

John Winston, you asked about costs. My CPA just filed our taxes which included my primary residence and my rental. He charged me about $350 total.

It was worth it to me.

Who told you this?

If your lender told you this, then it's probably true for that lender.

In my area, I don't know of any such rule.

I recently paid a plumber (who is related to me) $120 to change the internals on a toilet in my rental. It was in the evening so I guess that increased the price too. After this, I ended up re-plumbing an entire bathroom remodel I was doing myself. I didn't even bother asking my cousin plumber how much he would have charged me.

But your details are a little vague. I would say for one bathroom, a kitchen and some outdoor spigots, at least $500 for just the waste lines replaced and perhaps up to $5,000 to have everything replaced.

Seriously though, you might want to call a local plumber and get some estimates.

J Scott, if you can get all this done for $4,500-$5,500 it explains why you have been successful in this business. I didn't do a very good job of tracking receipts, but I'm going to list out some of my costs below. Tell me where you think I overpaid.

Kyle Hipp my estimate was closer to what you guessed, $10,000.

I had to replace the lower half of the exterior wall due to water damage, studs, sill plate etc. I also brought in extra floor joists to strengthen the floor, but I will exclude these costs.

Plumbing rough in = $375 + $0 labor = $375
3 new vents, 7 supply lines and 3 waste lines, shower valve.

Electrical = $500 + $200 labor = $600
3 plugs, shower light, vanity lights, under vanity lights, 3 recessed lights, switches, Panasonic exhaust fan.

Drywall & Insulation= $200 + $0 labor = $200
Rock, tape, mud, etc,

Wallpaper & Trim = $400 + $0 labor = $400
150' linear feet of trim & bead board

Paint & primer = $60 + $0 labor = $60

Shower Frame & pan = $500 + $0 labor = $500
2x4s, decking, pre slope mud pan, liner, deckmud pan, water barrier, shelves, waterproofing, hardiboard, tons of screws, etc.

Floor decking and Hardiboard = $220 + $0 labor = $220
2 layers of 1/2" plywood, adhesive, screws, nails, hardi laid in mortar bed.

72" vanity with granite top = $1,400 + $0 labor = $1,400
buyvanitiesonline.com

Plumbing fixtures & top out = $480 + $0 labor = $480
2 faucets, shower kit, toilet.

Tile = $900 + $750 labor = $1,650
Travertine laid in antique pattern, door tile, floor stones, mosaic with chair rail trim, thinset, grout.

Frameless shower door = $300 + $0 labor = $300
Ebay with ORB trim.

Tear out wall and pocket door install = $200 + $0 labor = $200
frame up and seal old doorway etc.
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Total not including misc. = $6,385

Where did I pay too much?