All Forum Posts by: Scott P.

Remove Cabinets and Countertops 1st. as the new cabinets may not cover the walls exactly like the existing ones.  Then Paint since you're replacing the floorcovering.  Then install the new cabinets.  Then the new countertops.  The do the new floor covering last.

If you're never done it before, since this is a good B rental, I would hire it out and learn from the installers in order to do it yourself next time.  You could easily Kilz the floor though by yourself.  You might want to do the tear out too to save $.

I doubt that you need a GC for this.  The cabinet supplier can refer you to installers for cabinets and countertops.  Paint and floorcovering don't need a GC.

Good luck!

It's doable.  I've done it.  Since it's your first one I recommend being conservative and paying it down after you've built up money for possible repairs and periods of vacancy. 

You could grow the business faster if you didn't pay it down but it's safer to be on the conservative side until you know you like the landlording business. 

You can always borrow against it later if you pay it down sooner.

I'm risk averse.  YMMV. Since the tenant is aware and complaining I would lean towards replacing it, especially if this is a possible sue-happy tenant or if this is an awesome tenant I want to keep happy.

I wouldn't worry about a fresh start as that also means work and $ for you to get ready for the next tenant.

You might consider a guideline that you're comfortable with.  For example, I never leverage more than 2to1, in the sense that if I had to sellout for 50 cents on the dollar I would still break even and not go BK.  I couldn't imagine a drop in equity of more than 50 percent.  If you're at the point that is comfortable for you, then you might go ahead and borrow for the next one.

15 years is a good track record.  I suspect you're decision will be a good one whatever you decide.

Property tax increases are the only increases I've passed to typical tenants who pay on time, etc.  It's a little bit of time and trouble for me but I send them a copy of the bill and explain that I don't get the money, the county gets it.

There are no special clauses in my leases for this.  I eat it until the next time I can work it in which is usually not too long since property taxes are paid in arrears in my State.

My hope is that this helps tenants understand the cost of the services they receive and perhaps vote wisely - if they vote.

My compliments to you on considering these details....

I've had both, and I've had ductless on both stand alone range hoods and with microwaves over the ranges.  Since you're remodeling anyway I'd get a price to run the vent outside and do that if possible unless this is like a C or D property and you're trying hard for low, Section 8 compatible rents.

I prefer them ran outside.

With that said, no one has ever complained about ductless vents to me.  

I commonly changed the filters when tenants moved but I've had a few who appear not to cook much.  In those cases I didn't need to change the filters on the ductless units.

Well....you know the drill....I'm not giving you legal or tax or even insurance advice but there were advantages for me in my opinion of owning some rental as a Sole Proprietor and I have the umbrella...

I've never made a liability claim against any policy but, again, I have the umbrella.

As I was putting utilities back in my name, I drove a tenant to City Hall and to the Natural Gas company (where he was behind on payment) to pick up the remainders of his deposits which he didn't realize he was entitled to get back.  His girlfriend had moved out and took their only car.  Then I dropped him off at his mom's house.

I also refunded his deposit less the utility reconnect fees that were due since he had one disconnected instead of having it transferred to me in an orderly fashion, despite the fact that there was damage in the unit such as a broken door where he'd locked himself out, and fire damage where it appeared charcoal spilled and the deck caught on fire, and more...

He'd lived there several years and paid fine prior to his break up.

I have more stories but mention this one since it's one I've already documented on BP.

Other than just listening and talking to tenants who want/need someone to listen or talk with, when I go above and beyond it's either anonymously or in a professional/business sort of way.  In over 20 years I haven't become personal friends with any tenants.  I suppose if I ever tried to turn a room at our house into an AirBnB I'd relate to that sort of tenant more like a friendly guest.

I've sold more than once with tenants in place.  

I have the Sale documents for one recent sale scanned and redacted to upload here on BP except I've misplaced the original purchase document from 1996 or so.  As soon as I make a trip to the attic to look for it I plan to share it all as a set, maybe in the "investor diary" section.

I didn't refer to it as a "turn key" at the time.

I've considered/discussed selling to tenants but none have taken me up on it.  I've had people inquire about rent-to-own through the years but at those times I wasn't interested in selling.  So i haven't tried that.

Having tenants in place is a "pro" or "con" depending on what a Buyer is looking for. With a duplex, I'd say the best situation would be to have one tenant in place and one side open with qualified applicants ready to go so that a Buyer would easily have the choice to move in the open side or have me (or the Buyer) put a tenant in place. With larger multis I'd think the more tenants in place the better off the Seller would be. With an SFR a tenant in place might be good for an investor but a tenant in place might knock a Seller out of the market for people buying a home for themselves unless the potential Buyer was actually an investor who had the foresight to buy with personal type financing knowing they would BRRR and move in a year or more.