All Forum Posts by: Sarah D.

Is it on the MLS? I assume so since you mentioned a price drop.

@Chris Gibbs The idea of someone taking that loan is horrifying on so many levels.

@Jay Hinrichs Completely agree with your points on building costs and tenant mix.  It doesn't make sense to try to have low income apts in a A+ multi.  Didn't know about the density factor, that's why I wondered if people would just skirt the law by building smaller buildings.

Is anyone building low income housing with those gov't incentives?  How do they make it work?

@Jay Hinrichs Do you expect a lot of <20 unit building to be built to skirt the law?

I hate that high rent gets lumped in with homelessness, which is a real issue and has bigger causes than high demand/low supply.

@Justin Frye we went through that with two tenants when we bought a 4 unit late last year.  Make sure you follow all local laws regarding serving notice (we hand delivered and sent via certified mail, but we're in CA).  I'd suggest 60 days as well, to ensure they have time to process this and find a place.  I'd also let them know they will receive back their entire deposit on the day of move out, assuming the unit is left broom clean.  

For long time renters this isn't a surprise.  They may have already been through it or know someone who has.  Just be honest, firm, and don't take any of it personally.

Side note, both our former tenants moved out without issue.  

@Logan Turner We went with LVP and paid $1.69 or $1.79 a sq ft; that's only because I did the install and didn't have the time to learn to set tile.  Love the LVP we used though, and it is very durable.

The wood look tile I saw was $1 a sq ft or less, but install is around $5 a sq ft.  If you're paying for install I would definitely look at the total difference in cost for wood look tile vs LVP.   Wood look tile is going to be the most durable material for a rental and is very popular right now so it would be great in a flip as well (IMO).

@Logan Turner We got quotes from $2-$3 a square foot.  I ended up doing it myself.  Some installers are also very particular about the subsurface, and even if the subsurface is within the tolerances the mfg has for imperfections they will reuire self leveling concrete to be poured prior to laying the floor (liability from subsequent flooring issues I'm sure).

Frankly, if the labor cost you get is also that high I would consider wood look tile flooring.  The material is cheaper, the labor more expensive so it ends up being almost the same as LVP.  

Yup! 4 unit in PB. The three units plus laundry cover PITI and water, so we live 100% for free. Expected cashflow after expenses, capex, reserves of $1k per month once fully occupied. Purchase price was $1.1M, purchased fall 2016, but we sold our home to purchase this, so 90% of the downpayment came from our house.

We're now working on a refi to pull out cash for the next purchase (we rehabbed all units and want to pull our rehab budget back out of the property).

I'm guessing you can come at it with your lawyer from the maximum occupancy angle, and the safety issues you mentioned.  And if there are kids CPS, etc.  That comment above about the child sleeping in a closet is really sad...

Would love to know how you resolve the issue, keep us posted!

we just rehabbed 4 units and went from a double sink w/o dishwasher to a single sink with dishwasher. The single sink is fine with a dishwasher, in my opinion. 

Around here adding a dishwasher increases rent ~$70 per month. Generally, the people I know who rent expect cheaper rent if there's no dishwasher or just won't rent a place without a dishwasher. 

I'd vote single sink and dishwasher to maximize space and utility. 

We also got the stainless whirlpools for $400 (stainless interior as well). Gotta love appliance sales!