All Forum Posts by: Valerie Hiscoe

From the photos, as has been mentioned, it's difficult to tell the shape that the walls and floors are in but I think that most people when newly renting a property, expect that the paint looks at least relatively fresh.  And is the paint two-toned in the bathroom?  Not a good look.

If you wanted to keep the rent status quo then you wouldn't need to do much else, as it looks pretty decent as is, but you said that you wanted to raise it so I think some of the options you suggested would go farther in achieving that goal than others - most importantly after paint - flooring and kitchen (you already said you were updating a bathroom vanity so, with paint, that's addressed).  Unless the tile is quite damaged, I'd leave that alone because merely changing it for change's sake won't get a higher rent.  Changing out the carpets, however, has a much better chance of doing so.  People will pay more for a place that looks more modern, and replacing the flooring with laminate will go a long way towards achieving that. 

Which brings us to the kitchen.....which is the one place the photos are pretty clearly indicating a need for an update.  It looks like the fridge and dishwasher are stainless steel so I would definitely build on that more expensive existing upgrade and paint the cabinetry (white).  That, and changing the hardware would make a huge impact.  I'd do that before addressing the flooring because it's a bigger bang for very few bucks (a lot of work, but less than tiling).  Use a great primer (the shellac-based one from Zinsser available at most paint places is quick and effective) and you might add an additional self-leveling compound to the paint you get to save you even more work and improve the final product.  I didn't really understand the moving-the-stove reference (has it got something to do with the hole in the cabinetry under the counter-top?), and can't really make out the floor-plan, so can't comment on that too much, but the stove does look a bit random where it is, and maybe it's placement is not the best use of space, so that could be worth considering too.  Kitchens and bathrooms, always the highest priority.

So, to sum up, 1) paint (although you must really hate painting if that's something you'd sub out), 2) paint kitchen cabinets, 3) replace carpet with laminate.  Before doing any of it though, as others with more experience than I have suggested, you're probably better off checking out other places in the neighbourhood to see how much the investment would affect your rental rate.  The time element is always something that should be kept in mind as well,  I must say though, it looks like a nice place that could turn out looking great.

Hi Stacey

Although my future investments will propably be in the US, if I do decide to look in BC, your area is at the top of my list. Please keep me on YOUR list for potential REI meet-ups.

Are you in touch with commercial mortgage brokers as well as realtors? Kyle Green with Mortgage Alliance, although in Vancouver, probably has a great referral. They undoubtedly have some insider info on properties you might be interested in. You probably already have that covered but thought I'd just throw it out there.

Sounds like you're on your way to a success-story podcast. Best of luck and have fun!

It doesn't sound like you've purchased a property yet so that's the assumption I'll work under. 

I think that without a little more knowledge, you are leaving yourself extremely vulnerable to being ripped off really badly. By everone. Being a woman, you already have the outer rings of the target drawn on your forehead.

I also think you should run as far away as you can from that contractor because, no matter what 'deal' you make with him, his underlying intention, now exposed, is to take advantage of your ignorance, and there are a million ways he can do it if you put him in a position to.

Believe me, I know.

Luckily, experience is not the only way to put yourself in control of your flips. Order the book 'The Book on Flipping Houses' and 'The Book on Estimating Costs' which come together from the munu above. (If you buy them from Amazon, you have to pay for them separately.) They will educate and empower you more than you can imagine and tens of thousands of dollars are at stake.

Until you've gone through those, I'd stop looking for properties (except to maybe practice using the flipping calculator, also in the menu above.) It's also a good way to test whether or not this business is for you. If you don't feel motivated enough to learn to be somewhat of a GC or project manager yourself, and it's maybe just the dream of money that attracted you to flipping, then there may be other areas of real estate that you'd want to consider. You don't have to be a total DIYer but, an intrinsic 'interest' is, in my opinion,a plus, if not a necessity. (Not at all meaning to discourage you.)

In other words, no, that's not a good arrangement for you. "Skin in the game" is a requirement of any joint venture.

Lol.  Well the number 1 most important thing to have is a sense of humour.

I didn't mean to be harsh in my last comment but sometimes just because you ask the question in a variety of ways, as you've done on other posts, it doesn't change the answer.

I'm hoping you get more responses to this thread so you might feel you have a more balanced response if it seems biased to you.

In the meantime, learn as much as you can and best of luck in finding a place that will fit within your parameters.

Don't ask a question unless you're ready to listen to the answers.  It sounds like you know it all anyway. And you're offending some of the people with the most integrity and willingness to help that are on here.

I'm not a very experienced investor but I'd say your plan looks great. It looks great because it's everybody's plan. The problem that I see is that your only 'plan B' scenario deals with not being able to sell your property for the price you want after the allotted time. Although there a bunch of problems that could come up after the time you get to your exit strategy (you should absolutely know the rental price before starting if renting is a fall-back option, etc), what I worry about is the number of things that must be done and can go wrong before you get there.

Rehabbing a house is not easy. Even if you're your own contractor and you know the price of absolutely everything, the plumber might not be available when needed. Without the plumber, you can't close up the walls or maybe the floors. You can't lay tile and you can't install cabinetry and by the time the plumber comes, you've lost all your other subcontractors. The electrician finds that although there's a 200amp panel, it only has a 100amp feed. And you find that if you pull a permit for something, the whole house has to meet a minimum safety code and now you find out upgrades must be made to your gas and HVAC. And this is if you ARE the contractor or have enough experience to know when you are or aren't being ripped off. I wish I was exaggerating but I've had this and worse happen. There are day in day out decisions that need to be made and in some cases you will absolutely make the wrong ones and have to back track. It's all a lot more exciting than your flow chart reflects! But if you start with a paint, flooring and cut the lawn type of rehab, it might be hard to find a property that will get you the return for which you aim.

Two months is a very short time for a rehab, even for someone with all the experience and connections to bank on. That's the first thing I'd tweak in your flow chart. Maybe map it for two months and then give yourself 6. Check progress daily if possible and keep a firm hand on the purse strings.

You're spreading your energy a bit thin maybe too. Wholesaling, rehabbing, flipping, rental.... that's a lot of specialized areas. It's a lot of pressure to put on yourself for your first go-round. Apart from the profit, which area really attracts you the most?

P.S. I don't mean to discourage you. It certainly won't stop me.

Myself, I wouldn't classify a houseboat as real estate unless I owned the land it was tied up to. The best way to get a good idea is ask your bank. I think they would classify a loan for the houseboat as a "boat loan", not a mortgage, in which case (as I believe) you have a boat, not real estate. It could be a cool place to live and a fun place to fix up, but think of it as boat if you plan to buy it. Can you afford the luxury of a boat right now or do you need to invest in actual real estate to get there?

The ceiling height would be a problem with a bar and stools. Another option is to make it a 'breakfast nook' area with bench seating (back of the bench where railing is now). Sounds like your wife has the creativity to be able to envision a solution - you didn't make it clear why you weren't sold on the bar idea, but in a split-level it must be the ceilings - it never hurts for her to have a few ideas to play with while you guys finalize your plans. A bar wouldn't cost much, nor would shelving or bench seating. But they can be a selling point which makes them even better value.

Hope to see more. Good luck!

I'm going to assume you have not as yet purchased the property.

I've seen questions in posts about whether or not to install stainless steel, granite counter tops, and other upgrades to properties. The answer is always "what are they doing in your neighborhood?".

My advice, humble though it may be, is don't stick out like a sore thumb. Don't do the upgrade if it's not done in your neighborhood.

Curb appeal is important whether it be for a renter or an appraiser. But if you can get it for $1000 instead of $6000 like @JD Martin suggested, you could probably afford a nicer looking front door area (most important for first impressions). That's where I'd focus my exterior budget - good gutters, good lighting, fresh paint, and flower pots (or equivalent landscaping) flanking the entry.